” State constitutions typically provide that the state first has to service its debt, then make it pension payments, and then pay for services. What we don’t know is whether that order will be enforced. And ultimately, the busted state is going to be looking to the federal government for a bailout. Think Greece, but on a much bigger scale. “


” I don’t know what a credit bubble means. I don’t even know what a bubble means. These words have become popular. I don’t think they have any meaning. “


” I think bubbles are things people see with 20/20 hindsight. If you look at any particular period where prices go up and then they go down, you will always find people who predicted that they would go down. Those are the people you pay attention to. “


” People think rationally that the world really is more risky. Imagine in 2008 that investors thought there was a 10% chance we’d have a depression. That would partly justify the drop in prices. “


” All the central banks are doing is substituting one form of debt with another form of debt. They’re issuing short term debt and using it to buy long term debt. In finance, we tend to think that’s a neutral activity, even though those stimulus programs are huge. “



All 5 Eugene Fama Quotes about Think in picture


State constitutions typically provide that the state first has to service its debt, then make it pension payments, and then pay for services. What we don
I don


I think bubbles are things people see with 20/20 hindsight. If you look at any particular period where prices go up and then they go down, you will always find people who predicted that they would go down. Those are the people you pay attention to.
People think rationally that the world really is more risky. Imagine in 2008 that investors thought there was a 10% chance we
All the central banks are doing is substituting one form of debt with another form of debt. They
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