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I don't think either take is correct but the former is closer to the truth.

It is all risk reward trade-off. If bonds have the same yield as other Investments with no risk, of course Savers and investors would select them over riskier strategies. This has less to do with discounting painful lessons and more to do with the spread on the return rate.



kids eat tide. Call me crazy, but I don't think assuming people make rational decisions is a good starting point for economics


I'm not saying everything's rational either, but you can't deny a difference in return rates make a difference.

More people will opt for a risky investment if it's paying substantially more then their safe one.

If there is little difference in return, few people will opt for the risky bets


Also, how many kids and the United States have eaten tied pods? Is it anywhere approaching a meaningful proportion?


are there any alternatives being explored actually?


To eating tide pods?


Bonds have a have huge amount of risk though

Read this: https://monevator.com/bond-market-crash/




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