Come on, take it easy. You look so serious!

I know a bit of equilibrium theory, and a bit of Black-Scholes model. Am I qualified to claim I know a teeny tiny bit of economic/finance? :)

Actually, how much I know about econ/finance has nothing to do with what I wrote or what you should argue. Either you state your deeper thoughts or point out where I was wrong. And, boy, was I talking about economics or finance?

So you said, everybody is greed. Let's agree on this. But we also know some old says like, no free lunch, or sky above not fall Xian-er Bing.

Wise people really know everything has a limit.

Let's take some examples.

Example 1. I sent you a letter, and told you that you could win $1,000,000 if you sent me a check of $100. You did as what I suggested and found out later you didn't win. Who is to be blamed?

Example 2. Suppose you make $40,000 a year (I am sure you make much much more than that.) and you want to buy a house, say around $100,000.

Your agent says, oh, no, you don't want to live in such a house like that. You can buy a $500,000 house.

You say, I can afford the mortgage.

He says, if you only pay the interest, you'll be fine. The rate is now only 4.0%, if you pay 20% down.

You say, I don't have the money to put down.

He says, no problem, you can borrow from another bank with a bit higher rate of 5.5%. However, the rate may be different after 5 years.

You say, what about after 5 years?

He says, the rate may be higher or lower. But no worry. If the rate is higher, and you can not afford it, you can always sell you house. The housing price always goes up.

You are happy and buys a $500,000 house.

:)