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Quote by John Maynard Keynes

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John Maynard Keynes
John Maynard Keynes

John Maynard Keynes, born on June 5, 1883, was a prominent British economist whose work had a profound impact on the field of economics, particularly in the area of macroeconomics. His theories advocating for government intervention to stabilize the economy gained widespread application during the Great Depression of the 1930s. more

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“I believe in market economics. But to paraphrase Churchill - who said this about democracy and political regimes - a market economy might be the worst economic regime available, apart from the alternatives. I believe that people react to incentives, that incentives matter, and that prices reflect the way things should be allocated. But I also believe that market economies sometimes have market failures, and when these occur, there's a role for prudential - not excessive - regulation of the financial system.”

PeopleWayShouldBelieveSaidSometimesMatterMightPoliticalI BelieveRolesEconomyDemocracyEconomicWorstEconomicsFinancialAvailableI Believe InAlternativesRegimesRegulationIncentivesMarket EconomyFinancial SystemParaphraseMarket Failure
Author:Nouriel Roubini
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“But in the financial markets, without proper institutional rules, there's the law of the jungle - because there's greed! There's nothing wrong with greed, per se. It's not that people are more greedy now than they were 20 years ago. But greed has to be tempered, first, by fear of losses. So if you bail people out, there's less fear. And second, b prudential regulation and supervision to avoid certain excesses.”

PeopleIfsYearsFirstsLawCertainLossYears AgoGreedFinancialExcessRegulationGreedyJungleSupervisionFinancial MarketsBail
Author:Nouriel Roubini
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“Perhaps more than anything else, failure to recognize the precariousness and fickleness of confidence - especially in cases in which large short-term debts need to be rolled over continuously - is the key factor that gives rise to the this-time-is-different syndrome. Highly indebted governments, banks, or corporations can seem to be merrily rolling along for an extended period, when bang! - confidence collapses, lenders disappear, and a crisis hits.”

NeedsGivingDifferentSeemsGovernmentTermCasesKeysPeriodsCrisisDebtDisappearFactorsCorporationsCollapseRollingBangsShort TermSyndromesIndebtedLendersRolling Along
Author:Carmen Reinhart
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“The essence of the this-time-is-different syndrome is...rooted in the firmly held belief that financial crises are things that happen to other people in other countries at other times; crises do not happen to us, here and now. We are doing things better, we are smarter, we have learned from past mistakes. The old rules of valuation no longer apply. Unfortunately, a highly leveraged economy can unwittingly be sitting with its back at the edge of a financial cliff for many years before chance and circumstance provoke a crisis of confidence that pushes it off.”

PeopleYearsDifferentCountryHappensPastBeliefChanceMistakeEconomyCircumstancesSittingEssenceCrisisFinancialEdgesRootedOther CountriesSmarterProvokingCliffsHere And NowSyndromesFinancial CrisisValuationPast Mistakes
Author:Carmen Reinhart
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“Short-term performance envy causes many of the shortcomings that lock most investors into a perpetual cycle of underachievement. Watch your competitors not out of jealousy but out of respect and focus your efforts not on replicating others' portfolios but on looking for opportunities where they are not. The only way for investors to significantly outperform is to periodically stand far apart from the crowd, something few are willing, or able, to do.”

WayAbleOpportunityCausesTermEffortWatchesFocusWillingPerformancesCrowdsEnvyCyclesInvestorsPerpetualLocksCompetitorsShort TermShortcomingsPortfolios
Author:Seth Klarman
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