"It is better to be roughly right than precisely wrong."

January 31, 2009 in Economics,Finance,Quotes

Despicable though his character may have been, Keynes said some remarkable things, the title of this post among them. He also uttered the cliched investing mottos regarding animal spirits and beauty contests -- true statements all, but widely abused by financial textbooks. My favorite, which remains somewhat unknown despite its enormous relevance, is:

The market can stay irrational longer than you can stay solvent.

An important second is this, in response to an accusation that he had changed his position on monetary policies during the Great Depression:

When the facts change, I change my mind. What do you do, sir?

And recently, I came across this one, which is a stunning insight into the last few years:

If you owe your bank a hundred pounds, you have a problem. But if you owe a million, it has.

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