Comments on: Chart of the day: long-term returns http://www.creditwritedowns.com/2008/08/chart-of-day-19-aug-2008-long-term.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2008/08/chart-of-day-19-aug-2008-long-term.html#comment-217 Edward Harrison Thu, 28 Aug 2008 12:12:00 +0000 http://www.creditwritedowns.com/2008/08/chart-of-the-day-19-aug-2008-long-term-returns.html#comment-217 Interesting thoughts. For whatever reason your comments triggered the thought of market-to-market comparisons of returns on equity and bonds. The book 'Triumph of the Optimist' does that. Let me see what it says? Interesting thoughts. For whatever reason your comments triggered the thought of market-to-market comparisons of returns on equity and bonds. The book ‘Triumph of the Optimist’ does that. Let me see what it says?

]]> By: MAB http://www.creditwritedowns.com/2008/08/chart-of-day-19-aug-2008-long-term.html#comment-177 MAB Tue, 19 Aug 2008 13:49:00 +0000 http://www.creditwritedowns.com/2008/08/chart-of-the-day-19-aug-2008-long-term-returns.html#comment-177 Ed,<br/><br/>Eventually, exponential growth (compounding) is tethered by real world constraints. That said, I think the history of the long run returns from stocks would be very different absent government support. Consider the creation of the federal reserve, the creation of the income tax, the confiscation and revaluation of gold by FDR, the rise of pension plans during WW2 wage freezes, the end of the Bretton Woods agreement in the 1970s, the RTC, lower tax rates, expanding government spending in relation to gdp, etc. <br/><br/>Absent these artificial supports, I think the long term returns on stocks and bonds would be much closer. <br/><br/>Just thoughts. I certainly could be wrong. Ed,

Eventually, exponential growth (compounding) is tethered by real world constraints. That said, I think the history of the long run returns from stocks would be very different absent government support. Consider the creation of the federal reserve, the creation of the income tax, the confiscation and revaluation of gold by FDR, the rise of pension plans during WW2 wage freezes, the end of the Bretton Woods agreement in the 1970s, the RTC, lower tax rates, expanding government spending in relation to gdp, etc.

Absent these artificial supports, I think the long term returns on stocks and bonds would be much closer.

Just thoughts. I certainly could be wrong.

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