Quote of the day – brought to you by the Financial Times
How then would Adam Smith fix the present mess? Sorry, but it is fixed already. The answer to a decline in the value of speculative assets is to pay less for them. Job done.
Maybe his concepts were written 200 years ago but they still hold up and explain how we got to where we are today. And the only way to get out of this is to allow a little hurt to be spread around. Meaning that somebody holding the current assets has to sell them for less than they paid for them. Ouch? Yes, but that’s the risk and the reality.
Somebody has to pay and I’d rather it be the ones who took the risk than it be me. I’ll pay for my own risks. You pay for yours.