Who was more wrong in the run-up to the financial crisis of 2008: the Federal Reserve or Moody’s Investors Service? This isn’t an academic question; both organizations are still hugely relevant to shaping the way we see our financial system and the risks it contains. And both are now apparently underestimating the dangers again.
Robert C. Merton , winner of the 1997 Nobel Prize in economics, said he will rejoin the faculty of the Massachusetts of Institute of Technology’s Sloan School of Management to focus on training students in quantitative finance.
In any negotiation, it is inadvisable to make threats that aren’t credible. Probably the only thing worse is to threaten actions that will end up helping the other side. Yet the Tea Party-affiliated House Republicans aren’t simply making this very mistake with the government shutdown; they are gearing up to do it again, on a grander and more fatal scale, with the debt ceiling.
There are growing concerns that the regulatory bodies overseeing the financial sector are incapable of understanding, preventing or even properly investigating excessive risk taking that threatens to ruin the economy.
June 28 (Bloomberg) -- MIT Sloan School of Management Professors and authors of the Book "Race Against the Machine" Erik Brynjolfsson and Andrew McAfee talk with Matt Miller about the digitization of the economy and how robots are replacing humans in the workforce at a rate never seen before. (Source: Bloomberg)