Economic adviser to President Carter, Charles L. Schultze, died yesterday at age 91. His book, “Memos to the President” is one of the first economics books I read but kept wondering “How do I know he is right?” That’s macro for you.
The NY Times obituary linked his HBO interview with rapper Ali G., explaining the stocks to him:
Schultze: “The lower you buy it and the higher you sell it, the more money you make.”
Ali G: “But ain’t the problem of selling things when youse high is that you sometimes get really bad deals? Like one time when mes was high me sold my car for like 24 chicken McNuggets. Me was wrong to do that!”
Schultze: But it wasn’t high.
Ali G: Yo! Mes was totally high! …(?) like some super skunk from Amsterdam and got loads of it and then me’s was hungry and they were like “Yo! Can we have your car?” and I said, “Yo, give me the chicken and maybe we can talk about it.”
Schultze: But that was because you were high.
Ali G: Yo, for real!
Schultze: But I’m not talking about you – I’m talking about the stock (points upward) Is the price high?
Ali G: Oh, so you shouldn’t be high when you sellin’…
Schultze: No, no. That’s a rule . Don’t be high when your buying and selling stock.