Sunday, March 22, 2015

Liquidation

After reading the Chapters 1&3, they talked a lot about the stock market and more so of that of the stock holders relationship to the firm.  Williams says that "america became more concerned with their prices and earnings which led to the market becoming more efficient".  More jobs would be created if the stocks went up and he states that this is a necessary evil.  I believe this because more money equates to more supply, given the demand goes up, this would bring in more capital and the firm would be able to expand.  But, i would debate that this is what actually happens on a consistent basis.

1 comment:

  1. Josh, it would be interesting to the class to know more about how these correlations are seen as by economists. And like you say, to compare such views of market dynamics with the reality on the ground.

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