Jun

23

 Here is Greenspan talking to Charlie Rose, in an interview on June 17th.

Here is a quote about what was the biggest thing he learned in last 4 years, and it has huge implications for how markets work….

…REALLY!

"We have time preference. People discount future events. Nobody pays for the right to consume something or gain an asset 5 years from now more than getting it today."

Sounds like the good doctor is learning now a bit about behavioural finance and trying to put a spin on a more simplified definition; i.e the end of the "lay-by " (In Australia and NZ a system of payment whereby a buyer pays a deposit on an article, which is reserved for him until he has paid the full price) and the emergence of the sequence of increased credit card and debt use, leverage and volatility).

Give consumers and inch and they will take a mile.

Seems by trying to keep connecting the dots, looking for a foolproof setup in a ever changing and dynamic system, his strategy will always be behind the curve, while losing the forest for the trees.


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