Re: poly: Re: Why interest rates may stay low

Robin Hanson writes:
> If, however, I only care about the financial return, then if I have a
> good feeling about the investment and knew and trusted the people involved,

But that's part of the point.

In 200 years, the same people will not be involved, and 200 years in
and of itself decreases the ability to predict risk and decreases the
odds of good return, thus reducing the amount of "good feeling" you
can get about the investment.

> and if there was a liquid market for selling my stake later,

But that is largely contingent upon an investment becoming
"mainstream". It is very hard to make a market in extremely
speculative securities, and thus the liquidity goes down.

> then holding fixed my risk and rate of return, I wouldn't care about
> the time frame.

Sigh.

Perry
Received on Thu Mar 26 20:49:30 1998