financeThere is an accountant’s story that goes like this: As soon as there was a man who was the chief accountant for a major business in town. Because of him there are a whole lot of wannabe Talebs who think that the easiest way to write a e-book about finance that can promote gazillions of copies is to write down like Taleb. Companies may have interaction briefly-term conduct to attain a specific credit standing.

Some of these programs included government created credit score inflation that stored employees locked in jobs that had been changing into legacy positions and that additionally promoted a house ownership scam that seemingly created center-class piggy-banks; authorities hiring practices that resulted in extreme overstaffing of bureaucratic businesses (about one-third of the Greek workforce is in the public sector); and pension benefits that allowed for very snug early retirements.

Thus, whereas they beef up company-banking items, they have to concomitantly beef up threat administration and undergo the headaches (and capital requirements) that include big loans to large firms. However the query of whether finance is unstable and tends to explode (and the way to deal with that) may be very completely different from the query of whether … Read More