The maximization by investors, after a period of irrational exuberance, of the net present value of future cash flaws.
In game theory parlance, the Yield Curve of Keynes' Liquidity Trap is its Nash Equilibrium, so to speak.
To be sure, this is exactly what will happen on September 18tn, 2009 at 4:11 PM EST, so to speak.
"I do think the most relevant likely reason why we are dealing with what we are dealing with are
new forces ... in the international market,... Their nature and their behaviour is not something
we are going to fully understand, if ever; certainly except in retrospect."
Chairman Alan Greenspan
Central Bank Panel Discussion.
To the International Monetary Conference.
Beijing, People's Republic of China
(via satellite)
June 6th, 2005.
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"But the essential issue here is one of insurance, with a relatively modest premium,
against a potentially catastrophic, very low probability event.
With that, Peter, would you outline your proposals to us?"
Chairman Alan Greenspan
Meeting of the Federal Open Market Committee.
August 24th, 1999
Our Anthem:
Those who don't have insurance:
