Wednesday, November 05, 2008

Towards a new financial system

First, congratulations to Barack Obama! And good luck -- he'll need it.

Second, two interesting articles about a new financial system. In the first one, Steve Waldman yearns for a financial system that actual pairs investors with investment opportunities, instead of taking "savings" and using it for anything but. Be sure to read the comments too.

This other article is a discussion on how payout structure can dramatically alter people's behavior wrt to saving. The effect can be large -- individuals can forgo increasing their consumption by 21 times in 30 days just because it is so difficult for them to resist small temptations and save.

Of course, Keynesians would have you believe that saving is the problem.

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

Links to this post:

Create a Link

<< Home