Natural Systems

Financial Collapse: It's Only Natural

Author: 
John Fullerton

What does the collapse of MF Global, the Euro crisis, the sub-prime mortgage crisis, the collapse of Fannie Mae and Freddie Mac, and the 1998 collapse of Long Term Capital Management all have in common?

Certainly these crises all shared the following characteristics: too much leverage, lack of transparency, inadequate regulatory oversight, agency problems of misaligned incentives, and failures of leadership at the very least. This is what we know, and we’re frustrated watching inadequate public and private sector responses to these problems.

Guest Post: More on the Complexity Economics Panel at Bretton Woods

Author: 
Phil Henshaw

New Economic Thinking… on reading economic data

Toward a Finance Ethic

 

An ethic, ecologically, is a limitation on freedom of action in the struggle for existence. An ethic, philosophically, is a differentiation of social from antisocial conduct. These are two definitions of one thing.  The thing has its origin in the tendency of interdependent individuals or groups to evolve modes of cooperation.

The ecologist calls these symbioses. Politics and economics are advanced symbioses in which the original free-for-all competition has been replaced, in part, by cooperative mechanisms with an ethical content.

The complexity of cooperative mechanisms has increased with population density, and with the efficiency of tools...

Toward a Finance Ethic

Author: 
John Fullerton

 

An ethic, ecologically, is a limitation on freedom of action in the struggle for existence. An ethic, philosophically, is a differentiation of social from antisocial conduct. These are two definitions of one thing.  The thing has its origin in the tendency of interdependent individuals or groups to evolve modes of cooperation.

The ecologist calls these symbioses. Politics and economics are advanced symbioses in which the original free-for-all competition has been replaced, in part, by cooperative mechanisms with an ethical content.

The complexity of cooperative mechanisms has increased with population density, and with the efficiency of tools...

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