[lbo-talk] Why Markets Fail

[michael perelman]

I read it differently.  He is just saying that people who invest in 
long-lived capital do so irrationally, without taking the likelihood of 
failure into account.

Ted Winslow wrote:


> “It is safe to say the enterprise which depends on hopes stretching into 
> the future benefits the community as a whole.  But individual initiative 
> will only be adequate when reasonable calculation is supplemented and 
> supported by animal spirits, so that the thought of ultimate loss which 
> often overtakes pioneers, as experience undoubtedly tells us and them, 
> is put aside as a healthy man puts aside the expectation of death.” 
> (General Theory, p. 162)
> 

-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901