Quote of the Week

With the separation between ownership and management which prevails to-day and with the development of organized investment markets, a new factor of great importance has entered in, which sometimes facilitates but sometimes adds greatly to the instability of the system. In the absence of security markets, there is no object in frequently attempting to revalue an investment to which we are committed. But the Stock Exchange revalues many investments every day and the revaluations give a frequent opportunity to the individual (though not to the community as a whole) to revise his commitments.

— John Maynard Keynes, The General Theory of Employment, Interest and Money (BN Publishing, 2008), pp. 150–151.

An alternative interpretation of the ability to quickly revise one’s choices is that they allow us to reveal causes of instability sooner rather than later.

Leave a Reply

Your email address will not be published. Required fields are marked *