Andrés Mc Cormack

“In the immediate postbubble period, the wealth effect of asset price movements has a bigger impact on economic growth rates than monetary policy does. People tend to underestimate the size of this effect. In the early stages of a bubble bursting, when stock prices fall and earnings have not yet declined, people mistakenly judge the decline to be a buying opportunity and find stocks cheap in relation to both past earnings and expected earnings, failing to account for the amount of decline in earnings that is likely to result from what’s to come. But the reversal is self-reinforcing. As wealth falls first and incomes fall later, creditworthiness worsens, which constricts lending activity, which hurts spending and lowers investment rates while also making it less appealing to borrow to buy financial assets. This in turn worsens the fundamentals of the asset (e.g., the weaker economic activity leads corporate earnings to chronically disappoint), leading people to sell and driving down prices further. This has an accelerating downward impact on asset prices, income, and wealth.”
― Ray Dalio, A Template for Understanding Big Debt Crises

“So now all of this writing has diverted me from my purpose and I am not in the right state of mind anymore.  If you think it is easy to procrastinate on a school assignment, try killing yourself some time.”
― Clayton Atreus, Two Arms and a Head: The Death of a Newly Paraplegic Philosopher

“If you support protectionism because you think it’s good for you, you’ve probably just got your economics wrong. But if you support protectionism because you think it’s good for your fellow Americans, at the expense of foreigners, then it seems to me you’ve got your morals wrong too.”
― Steven E. Landsburg, More Sex Is Safer Sex: The Unconventional Wisdom of Economics

“Not allowing people to choose the time and manner of their own deaths is madness.  It is burning witches.  It is executing people for making scientific discoveries.  It is torturing infidels.  It is absolute, unqualified, inhuman insanity.  There are millions who agree with me and I’ll warn all of you again and again.  Beware!  There could be a horrible fate waiting for you and if you don’t all get together, look each other in the eye, recognize the insanity, and change the laws, you could wake up tomorrow as a head on a corpse with no way out for the next thirty years.”
― Clayton Atreus, Two Arms and a Head: The Death of a Newly Paraplegic Philosopher