Re: comments on Kroszner speech

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Posted by warren mosler (65.113.90.26) on 13:32:55 12/07/07

In Reply to: Re: comments on Kroszner speech posted by Paul Palmer

: Warren, with someone with obvious talents in both areas (finance, engineering) I think you would be doing this country a lot of good if you would expound on this subject more.

Thanks, agreed, not sure what else to do! And less than 10 years ago we were growing gdp at 6% without anywhere near the levels of 'securitizations' of recent years, so clearly they added nothing to the real economy, and it's no surprise to me they aren't taking much away as they go by the wayside, but surely to be replaced by others.

:
: Graduates of our engineering schools are heading off for finance jobs, while engineering jobs ae being exported to India and China. While great minds have always gone into finance, the societal "good" of a more effiecient financial system (especially at this point) pales in comparison to solving clean energy needs, curing cancer, etc. I cannot fathom how some guy running a hedge fund, who has to disclose absolultely nothing about what he is doing, can "earn" $1.6B in pay for one year. Clearly we have actually created "inefficient" financial markets if such can be done.
:
: FOSTERED AN ARMY OF TRADERS WHO COULD HAVE BEEN
: OUT CURING CANCER OR SOMETHING ELSE MORE USEFUL. LITTLE OR NONE OF
: THE 'FINANCIAL INNOVATION' HAS LED TO MORE EFFICIENT ALLOCATIONS OF
: REAL RESOURCES, BUT INSTEAD HAS ABSORBED THE BRIGHTEST AND BEST INTO
: THE WORLD OF 'REARRANGING OF FINANCIAL ASSETS' ENCOURAGED UNDER
: CURRENT INSTITUTIONAL STRUCTURE, INCLUDING TAX LAW AND TAX ADVANTAGE
: SAVINGS PROGRAMS UNDER THE MISGUIDED NOTION THAT 'SAVINGS IS NEEDED TO
: PROVIDE FUNDS FOR INVESTMENT' AS EVERY ECONOMIST IS (OR WAS AT ONE
: TIME) WELL AWARE.

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Subject:	Re: comments on Kroszner speech
Comments:	: : Warren, with someone with obvious talents in both areas (finance, engineering) I think you would be doing this country a lot of good if you would expound on this subject more. : : Thanks, agreed, not sure what else to do! And less than 10 years ago we were growing gdp at 6% without anywhere near the levels of 'securitizations' of recent years, so clearly they added nothing to the real economy, and it's no surprise to me they aren't taking much away as they go by the wayside, but surely to be replaced by others. : : : : : : Graduates of our engineering schools are heading off for finance jobs, while engineering jobs ae being exported to India and China. While great minds have always gone into finance, the societal "good" of a more effiecient financial system (especially at this point) pales in comparison to solving clean energy needs, curing cancer, etc. I cannot fathom how some guy running a hedge fund, who has to disclose absolultely nothing about what he is doing, can "earn" $1.6B in pay for one year. Clearly we have actually created "inefficient" financial markets if such can be done. : : : : FOSTERED AN ARMY OF TRADERS WHO COULD HAVE BEEN : : OUT CURING CANCER OR SOMETHING ELSE MORE USEFUL. LITTLE OR NONE OF : : THE 'FINANCIAL INNOVATION' HAS LED TO MORE EFFICIENT ALLOCATIONS OF : : REAL RESOURCES, BUT INSTEAD HAS ABSORBED THE BRIGHTEST AND BEST INTO : : THE WORLD OF 'REARRANGING OF FINANCIAL ASSETS' ENCOURAGED UNDER : : CURRENT INSTITUTIONAL STRUCTURE, INCLUDING TAX LAW AND TAX ADVANTAGE : : SAVINGS PROGRAMS UNDER THE MISGUIDED NOTION THAT 'SAVINGS IS NEEDED TO : : PROVIDE FUNDS FOR INVESTMENT' AS EVERY ECONOMIST IS (OR WAS AT ONE : : TIME) WELL AWARE. :
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