Comments on: Saving and Investing: The Difference Between Debt and Equity http://www.getrichslowly.org/blog/2007/04/05/saving-and-investing-the-difference-between-debt-and-equity/ personal finance that makes cents Thu, 20 Nov 2008 17:23:40 +0000 http://wordpress.org/?v=2.5.1 By: A Collection of Financial Literacy Resources ? Get Rich Slowly http://www.getrichslowly.org/blog/2007/04/05/saving-and-investing-the-difference-between-debt-and-equity/#comment-85035 A Collection of Financial Literacy Resources ? Get Rich Slowly Tue, 01 May 2007 12:01:20 +0000 http://www.getrichslowly.org/blog/2007/04/05/saving-and-investing-the-difference-between-debt-and-equity/#comment-85035 [...] The difference between debt and equity [...] [...] The difference between debt and equity [...]

]]> By: stylizedfact http://www.getrichslowly.org/blog/2007/04/05/saving-and-investing-the-difference-between-debt-and-equity/#comment-83370 stylizedfact Mon, 09 Apr 2007 00:42:33 +0000 http://www.getrichslowly.org/blog/2007/04/05/saving-and-investing-the-difference-between-debt-and-equity/#comment-83370 These are good lectures. What I think would be a useful addition to them is a piece that addresses cyclical behavior in financial markets. The market price of risk tends to vary considerably over different time periods. And this tendency hasn't really diminished with the passing of time, where scholars and finance experts would tend to learn more about the cause, and be able to implement policy (or arbitrage) that reduces such fluctuation. Another interesting topic would be growth economics and technology. The Adam Smith school developed before switching costs and network externalities (having everyone use the same convention for a telephone, computer system, or keyboard) became influential in global economics. For example, in the case of an AIDS vaccine, we'd ideally like an infinite amount of investment in discovery, followed by free distribution of the product. Financial markets can't really deal with that. These are good lectures. What I think would be a useful addition to them is a piece that addresses cyclical behavior in financial markets. The market price of risk tends to vary considerably over different time periods. And this tendency hasn’t really diminished with the passing of time, where scholars and finance experts would tend to learn more about the cause, and be able to implement policy (or arbitrage) that reduces such fluctuation.

Another interesting topic would be growth economics and technology. The Adam Smith school developed before switching costs and network externalities (having everyone use the same convention for a telephone, computer system, or keyboard) became influential in global economics. For example, in the case of an AIDS vaccine, we’d ideally like an infinite amount of investment in discovery, followed by free distribution of the product. Financial markets can’t really deal with that.

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