Why Capital is Overvalued

MScoleman at aol.com MScoleman at aol.com
Sat Mar 6 17:55:44 PST 1999

In a message dated 99-03-05 12:38:06 EST, an exchange between max and michael:

<< > That's plausible enough, as far as it goes.

> But if this always happens, why do the investors always make the

> same mistake?

I don't have time to anwer you Max. I need to check up on my Amazon



just to hazard a guess, I believe investors want to believe in the rationality of the business people (frequently men). If they can't believe in ceo's then they have no one else to believe in.

Michael makes a joke about Amazon here, but the same may be said about millions of rational investors pouring big, big money into internet stocks which haven't returned a dime and aren't likely to any time soon. Perhaps this is all what Keynes called animal spirits. maggie coleman mscoleman at aol.com

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