I transcribed A Symposium with 2013 American Nobel Laureates at Embassy of Sweden, Washington - YouTube starting at 56:00.
The moderator, AAAS CEO Alan Leshner, claims
Locking up that kind of money would be hard for any
Eugene Fama cuts him off.
Wo Wo Wo. Now you're on weak grounds.
In that case, I withdraw the offhand remark.
That's one of the worst fallacies in all this discussion actually.
Would you explain it?
Because it's expensive to use money?
It doesn't freeze...What determines the value of something is the assets out of the balance sheet. The amount of debt that's financed with equity, that's not put aside. That's financing assets on the other side. Then you have debt that's also financing assets on the other. So this statement that if they have more equity, they're going to put this aside. Nope. It doesn't happen that way. It gets invested in stuff.
Can someone pls elaborate Fama's answer?