Monday, August 18, 2008

allocation of scarce goods

Lessons in Love, by Way of Economics
by Ben Stein 7/13/08

High-quality bonds consistently yield more return than junk, and so it is with high-quality love. The data from the maven of bond research, W. Braddock Hickman, shows that junk debt outperforms high quality only in rare situations, because of the default risk.

In love, the data is even clearer. Stay with high-quality human beings. And once you find that you are in a junk relationship, sell immediately.