The Greed Narrative

[vit_r]

The Greed Narrative goes something like this: The financial markets are dominated by absurdly overpaid zillionaires. They invent complex financial instruments, like globally securitized subprime mortgages that few really understand. They dump these things onto the unsuspecting, sending destabilizing waves of money sloshing around the globe. Economies melt down. Regular people lose jobs and savings. Meanwhile, the financial insiders still get their obscene bonuses, rain or shine.

The morality of the Greed Narrative is straightforward. A small number of predators destabilize the economy and reap big bonuses. The financial system is fundamentally broken. Government should step in and control the malefactors of great wealth.

The Ecology Narrative is different. It starts with the premise that investors and borrowers cooperate and compete in a complex ecosystem. Everyone seeks wealth while minimizing risk. As Jim Manzi, a software entrepreneur who specializes in applied artificial intelligence, has noted, the chief tension in this ecosystem is between innovation and uncertainty. We could live in a safer world, but we’d have to forswear creativity.

"Two Cheers for Wall St.", By DAVID BROOKS

Comments

in case you have an opinion

[girit.livejournal.com]

what is financial innovation?
and why it is good to have it - what's the added value?

Re: in case you have an opinion

[vit-r.livejournal.com]

I think this would be an applied artificial intelligence innovation :-)

Re: in case you have an opinion

[girit.livejournal.com]

i am wondering what does it do (not how).
for example - technical innovation does a number of things - creates cheaper ways to do hings, more convenient ways to do things... say the car allows to move faster from place to place. ipod allows cheaper and more convenient way to listen to music.

Re: in case you have an opinion

[vit-r.livejournal.com]

Ох, ну кто ж слова экономистов всерьёз воспринимает? Тем более, когда они программистов пересказывают

Впрочем, ща поищу чего-нибудь про инноваторство...

Re: in case you have an opinion

[girit.livejournal.com]

thanks... no need. i can google well. i was interested in your opinion (i know you make your journal as collection of notes, so i guess i am not going to ask these questions in future)

Re: in case you have an opinion

[vit-r.livejournal.com]

Формат блога не располагает к углублению в вопросы, одно объяснение контекста которых требует (по хорошему) пары страниц текста. Вот насчёт вещей, с которыми я работаю постоянно, я могу отделаться парой совершенно левых, но удовлетворительных для дискуссии аналогий.