And, you know, when those dreams turn out to be nightmares - other people pay for it.
For decades, the American financial system was stable and safe. But then something changed. The financial industry turned its back on society, corrupted our political system, and plunged the world economy into crisis. At enormous cost, we've avoided disaster and are recovering. But the men and institutions that caused the crisis are still in power, and that needs to change. They will tell us that we need them, and that what they do is too complicated for us to understand. They will tell us it won 't happen again. They will spend billions fighting reform. It won't be easy.
But some things are worth fighting for.
—— The movie "Inside Job" During the
whole financial crisis, the greedy nature of capital was exposed. Wall Street financial derivatives innovation did not reduce the risk of subprime mortgages. It just transfers and spreads the risk to more people. And precisely because the risk has been transferred from financial institutions, financial institutions are able to absorb more subprime loans with higher interest rates with greater confidence. As a result, society as a whole takes on higher risks, and financial capital concentrated on a few people is full of profits.
In this lengthy financial chain, each link seeks to maximize its own interests, but in the end it does not bring the highest efficiency of the chain as a whole. So it can be said that the free market is definitely failing here.
The most terrible thing is not the loss of wealth, but the loss of humanity-under the pressure of capital and interests, who can be trusted? When I saw Glenn Hubbard's botched attitude when facing interviews, it was hard to believe that this was the author of the economics textbook I had read, an economist, professor, and scholar. Not to mention the two Fed chairmen, Greenspan and Bernanke. Refusing to interview is undoubtedly a signal: I am guilty. This is the kind of central bank governor who can predict the future and assume the responsibility of a country while strategizing, winning thousands of miles away in my mind?
When you have begun to accept benefits, it is impossible for you to get rid of the relationship and become an independent scholar or an honest think tank. I remembered Wu Jinglian’s quotation from "The Biography of Wu Jinglian": "The primary duty of an economist is to study science, discover the truth, and be an observer with an independent standpoint." Now I finally know the consequences of violating this statement. So it's the simple truth. To judge whether a person or organization is trustworthy or not, first see if there is any conflict of interest; and if you want to gain the trust of others, you must also choose what benefits you accept.
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