I’ve posted Podcast #121 to the “RobCasts” section of the site. It’s called Integrity Matters.
Valuations matter. Overvaluation and undervaluation wouldn’t be possible if stocks weren’t owned by people and if people did not possess emotions. So another way of saying the same thing is to say that emotions matter. Challenges to our integrity inspire emotional reactions in most of us. Criticisms of the Passive Investing model are often viewed by Passive Investing advocates as challenges to their integrity. The defensiveness that results makes discussions of the flaws of Passive Investing highly emotional. Integrity matters.
Clearly, we view the Government’s role in the Great Depression differently.
What I have seen convinces me that the Government kept killing off recoveries.
One especially egregious problem was the behavior of the Federal Reserve. Every time that business looked weak, it tightened credit standards, forcing the bankruptcy of many firms that could have prospered after a rough spot.
Have fun.
John Walter Russell
Thanks for sharing your thoughts, John.
I know very little of the history.
Rob
Rob,
It wasn’t so bad that economists assumed a rational man. It is that they assumed a stupid rational man.
Have fun.
John Walter Russell