FT:
Taming markets to make capitalism ethical
Capitalism
has slipped its moral moorings. Since the financial crisis erupted, remedies
have focused on capital, equity and structure. These are certainly necessary.
But it is even more important that we address the deficiency in moral and human
spirit which was the real root of the crisis. We are doomed to repeat our
mistakes if we do not restore sound ethics to economic behaviour.
You think?
FT:
Video on John Ruskin and executive pay (requires subscription)
There
is no wealth but life. –John Ruskin
It’s about time...
NYT,
Paul Krugman: A picture is worth a thousand words
No words
necessary...
FT:
Economists’ blog_How Mistaken Ideas Brought Down the Economy
The
efficient market hypothesis, which has had a dominant role in financial
economics, proposes that all relevant information is in the price. Prices will
then move only in response to news. The movement of the market will be a
“random walk”. Mr Smithers shows that this conclusion is empirically false:
stock markets exhibit “negative serial correlation”.
Another nail in the EMH coffin.
Brookings
Institution: Five Myths about Our Land of Opportunity
Americans have always believed that their
country is unique in providing the opportunity to get ahead. Just combine hard
work with a bit of talent and you'll climb the ladder—or so we've told
ourselves for generations. But rising unemployment and financial turmoil are
puncturing that self-image. The reality of this "land of opportunity"
is considerably more complex than the myths would suggest.
It’s a great country, but it could be greater and fairer.
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