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T Quotes

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All T Quotes

“The stock exchange is a poor substitute for the Holy Grail,” warned Schumpeter, who added that the middle class is “rationalist and unheroic.” In fact, middle class man “can only use rationalist and unheroic means to defend his position or to bend a nation to his will.” These are disturbing words for Americans, who are egalitarians to the core. The notion that “all men are created equal” is branded into our consciousness. But let us be honest for a moment. Men are hardly created equal in reality. If you factored in education and training, men would not long remain equal even if they were created so. Some are naturally gifted from childhood. Some benefit from hard training and long study. It used to be that aristocracy, under the best circumstances, was a training in leadership that would begin at infancy. What we are now left to is the training of opportunists by state functionaries.”

“The Stock Exchange is something very different. There is no economy and no production of goods and services. There are only fantasies in which people from one hour to the next decide that this or that company is worth so many billions, more or less. It doesn't have a thing to do with reality or with the Swedish economy.”

“The stock market crashed in October 1929. But that was not the cause of what caused the Great Depression. It was, in my opinion, a very minor element of it. What happened was that from 1929 to 1933 you had a major contraction which, in my opinion, was caused primarily by the failure of the Federal Reserve System, to follow the course of action for which it was set up. It was set up to prevent exactly what happened from 1929 to 1933. But instead of preventing it, they facilitated it.”

“The stock market has gone up and if you are stock picking, that's fine, you may do a bit better than the market. But if you want to play in another game where you can get rapid increases of value and so on and so forth, this apparently has become the new parlour game, to invest in these companies and many their cases, the private equity that has been piling in onto of the venture capital is creating the unicorn, in other words the company with the $1 billion valuation.”

“The stock market in Japan was half the world market and where has the Japan economy gone since the 1990s? Nowhere. They've been struggling for two decades in the aftermath of a massive bubble that's collapsed. They've tried to work their way out of it by printing even more money and it hasn't worked. Now, I'm saying this is what all the central banks are doing. There is no honest interest rate in the world today.”

“The stock market is but a mirror which provides an image of the underlying or fundamental economic situation. Cause and effect run from the economy to the stock market, never the reverse. In 1929 the economy was headed for trouble. Eventually that trouble was violently reflected in Wall Street.”