This assumption breaks down for most financial assets. Both parties still think ... | Hacker News

Hacker Newsnew | past | comments | ask | show | jobs | submit

drabiega on July 23, 2017 | parent | context | favorite | on: Is Productivity Growth Becoming Irrelevant?

This assumption breaks down for most financial assets. Both parties still think that they are gaining value, but one of them has to be wrong.

mattmcknight on July 24, 2017 [–]

This is completely wrong. I sell stocks because I need cash. I make a loan because someone else needs cash. Liquidity preferences matter, volatility preferences matter, both parties can gain value.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact