tag:blogger.com,1999:blog-1110014885778996459.post8234750990000917321..comments2024-03-29T00:15:52.716-07:00Comments on Idiosyncratic Whisk: The similarities between 1990 and 2007Kevin Erdmannhttp://www.blogger.com/profile/07431566729667544886noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1110014885778996459.post-10780855549765164212015-04-24T19:52:35.701-07:002015-04-24T19:52:35.701-07:00TravisV here.
Thanks for mentioning me! I've ...TravisV here.<br /><br />Thanks for mentioning me! I've been busy lately but LOVE the 1992 Friedman WSJ op-ed!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-45809809245499602972015-04-21T23:39:55.438-07:002015-04-21T23:39:55.438-07:00I think you're right. I wonder if we should e...I think you're right. I wonder if we should expect higher equity premiums since such a high proportion of corporate revenues and production are foreign now. Total expected returns to corporate assets appear to still be in the same range they have been for a long time, although it looks to me like those expected returns may be boosted slightly by higher expected growth in foreign revenues. GDP growth expectations are low in the US, and this doesn't seem to be reflected in corporate growth expectations. I haven't completely settled on a theory yet of what, if anything, should happen to corporate returns over the long run. It could be that demographics and emerging market savings are the largest contributors to the current risk premium profile. But, just with Apple, there is a lot of intangible capital and a lot of cash, with little or no corporate debt. The tech. and internet factor must have some influence.Kevin Erdmannhttps://www.blogger.com/profile/07431566729667544886noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-70895991488569184522015-04-21T20:17:46.042-07:002015-04-21T20:17:46.042-07:00Really thoughtful blogging. The explosion of inter...Really thoughtful blogging. The explosion of international trade and the Internet may have combined to make business enterprises more risky as well.<br />I think the main point is clear: the Fed needs to be much more aggressive in fomenting growth.<br />As Milton Friedman advised in 1992, even when inflation was 3% and real growth was 4%.<br />Which raises a troubling question: when did America's right-wing monetarists become such a band of defeatists? They seem to think robust growth is impossible, or if possible would cause inflation to rise above 2% and thus is impossible. And the liberals are worse.Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com