Matt Levine’s Money Stuff: At Least the Market Isn’t Boring

No risk, no ’rari

One model of capital markets is that volatility is bad and stable policy is good. Investors are more likely to commit capital to socially productive projects if they expect a reasonably predictable reward. Investing is a way to participate in long-term economic growth, and steady growth helps investors to plan for the future and entrepreneurs to raise capital.

Another model of capital markets is that people like gambling, so introducing some extra volatility makes markets more fun and exciting and gives people what they want. How much should you save for retirement? Should you borrow money ...