…may be subject to tax. They may increase their work instead. Economics can’t really say. Two, taking risks is of value when it is associated with entrepreneurship, but risk-taking is…

Yesterday I attended the 6th Annual Goldman Sachs Emerging Markets conference in New York. My takeaway from the conference overall was that the risk-on sentiment that is driving massive inflows…

…much open season on them, but just prior to their collapse, AIG was: 1) The largest insurance company in the US, in the business of assessing risk. 2) One of…

…no canteen, or having to swim five miles from shore in a dangerous waters, is not the same risk as walking five miles down an unpaved dirt road in the…

…response to the housing bubble would have been regulatory, not monetary. Stronger regulation and supervision aimed at problems with underwriting practices and lenders’ risk management would have been a more…

…out then they will bear more risk than they would if they were rational. Welfare will be lower. The amount of irrational risk bearing can be influenced by policy. The…

…firm is bankrupt next year. It increases risk aversion (by penalizing variance). This also means it penalizes short termism. Also a bit more risk aversion would have been nice no…

…cash right now *and* that perceived risks are high so the US government which can borrow at low rates and has no reason to be risk averse (rather the opposite…

Robert Waldmann Two quotes about liquidity. An anonymous TPM reader it is in everyone’s interest that markets be as liquid as possible. One of the factors increasing the risk of…

…they all face no risk. If there are half as many apples, the relative price of apples doubles. They always eat the same number of oranges (and no apples they…