“Dad, we need a savings account paying more than 25 per cent interest. Is there one?”
“Not at the moment, dear.”
“Anything close?”
“No. Actually, the banks are grumbling that they can’t begin to compete with the 0.5 per cent interest, after tax and inflation, on offer from the government.”
“I’m not sure what your demonstration of compound interest is supposed to be teaching me, Dad. Is there any way to get a 10 per cent return?”
“You can take more risks. But the thing about this savings bond is it’s backed by the government and is therefore completely safe.”
“I see. Is that because governments always pay back their debts?”
Originally from the pit at Tradesports(TM) (RIP 2008) ... on trading, risk, economics, politics, policy, sports, culture, entertainment, and whatever else might increase awareness, interest and liquidity of prediction markets
Thursday, June 02, 2011
Being too literal-minded
If genius is being comical and melancholic simultaneously, Tim Harford defines:
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