And so we go to the heart of the matter with what ails our economy. Financial services have become a point of HUGE friction, costing capital that is wildly disproportionate to the value they provide. How do we fix it?
On Sat, Feb 7, 2009 at 5:36 PM, Gruss wrote: > > That being the case, Buiter is awesome IMO and he studied under Tobin > who basically predicted this back in 1984: > > "I [suspect] we are throwing more and more of our resources, including > the cream of our youth, into financial activities remote from the > production of goods and services, into activities that generate high > private rewards disproportionate to their social productivity. I > suspect that the immense power of the computer is being harnessed to > this 'paper economy', not to do the same transactions more > economically but to balloon the quantity and variety of financial > exchanges I fear that, as Keynes saw even in his day, the advantages > of the liquidity and negotiability of financial instruments come at > the cost of facilitating nth-degree speculation which is short-sighted > and inefficient. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:287699 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
