Why must GM pay more interest on their bonds than U.S. Treasury bonds?
Why does the U.S. government sell bonds? Why would they want to borrow from us? Can't they just print off the money?
Why does the graph comparing risk and expected return have a positive slope?
Is profit inherently immoral?
We continued our reading of Schiff's How an Economy Grows and Why It Crashes. The following are some excerpts we discussed:
"We are told that we must go deeper into debt to fix our debt crisis, and that we must spend in order to prosper."
"Keynesianism permits governments to pretend that they have the power to raise living standards with the whir of a printing press."
"From gains in productivity all other economic benefits flow."
"But the economy didn't grow because they consumed more. They consumed more because the economy grew."
Housekeeping items:
-Monday we'll have a vocabulary quiz concerning concepts and terms that we've discussed thus far. The final list will be posted tomorrow after class.
-Character profile reports will be presented next Wednesday. Have things typed up ready to turn in, and be ready to present to the class.
