The Price of Time: The Real Story of Interest
To grasp why people bury themselves in debt you don’t need to study interest rates; you need to study the history of greed, insecurity, and optimism. To get why investors sell out at the bottom of a bear market you don’t need to study the math of expected future returns; you need to think about the agony of looking at your family and wondering if y
... See moreMorgan Housel • The Psychology of Money: Timeless lessons on wealth, greed, and happiness
The development of the rate of interest was an enormous leap forward because it allowed us to connect our present economic reality to some imagined future scenario. If the interest rate is too low, a lender won’t lend to the future, and the commercial journey of investment in tomorrow stops. But if the rate is too high, a realistic borrower won’t b
... See moreDavid McWilliams • Money: A Story of Humanity
