Comments on: Saving the economy from our brains http://blogs.reuters.com/great-debate/2009/02/06/saving-the-economy-from-our-brains/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Lynn Cee http://blogs.reuters.com/great-debate/2009/02/06/saving-the-economy-from-our-brains/#comment-7700 Wed, 11 Feb 2009 17:20:14 +0000 http://blogs.reuters.com/great-debate/?p=1910#comment-7700 The previous comment re. credit unions is spot on. Banksters are bankrupting the system and the global economy. The effect of the gradual befogged the windshield: Ample warnings were out there for a very long time. Here in the US, a common, longstanding comment is: Where do you put it? … Under the mattress isn’t good enough. When I moved here from Toronto two decades ago, I found the fear and cynicism over the safety of one’s assets quite shocking.

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By: Franz Kafka http://blogs.reuters.com/great-debate/2009/02/06/saving-the-economy-from-our-brains/#comment-7425 Mon, 09 Feb 2009 09:26:31 +0000 http://blogs.reuters.com/great-debate/?p=1910#comment-7425 The comments regarding the misguided corporate philospohy that forces individuals to step in line or get out of the way is the sad truth of todays society. There is no room for even a slight doubt or failure. Once you show a weakness there will be a punishment, company or individual level. No room for high moral standards. I get sick hearing CEO’s preach the crap about leadership, mentoring, team building etc. It seems the bigger the failure the meager the consequences provided you are high up in the hierarchy. So what does a regular guy do – carry on being exploited simply because you’re doomed otherwise. In that environment fraud, risk-taking, deceit will flourish.

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By: MrBill, Eurasia http://blogs.reuters.com/great-debate/2009/02/06/saving-the-economy-from-our-brains/#comment-7422 Mon, 09 Feb 2009 08:00:16 +0000 http://blogs.reuters.com/great-debate/?p=1910#comment-7422 Mr. Saft. What rot!Governments set fiscal policy. Central banks set monetary policy. They collectively decide whether or not they are going to run debts and deficits that need to be financed. And they control both the cost and quantity of money via interest rates. Although it is hard for central banks to control both at the same time. Excess money supply creation means that money has to be invested somewhere even if the rates of return do not justify the risk being taken.Low real interest rates, in many cases zero or negative, encourage risk taking as borrowed money is essentially free. But governments love it when banks, investors and traders make money because then they get their cut via taxes. Taxes that can then be shared with voters to ensure that governments made up of politicians get re-elected.Balance budgets and pay down debt, while keeping real interest rates neutral and currencies at their trade-weight adjusted value, and you go a long ways to making financial systems both more robust and stable.We are in the worst credit crisis and financial meltdown in generations. Quite frankly I am getting quite tired of Monday morning quarterbacks – financial journalists such as yourself – constantly banging on about how banks, traders and investors created this mess when really their true cause were the build-up of global financial imbalances caused by excessive money supply creation and the rapid expansion of credit as well as central bank manipulation of currencies to remain export competitive.Why it is so annoying is because the only difference between a recession and a depression is the policy response to such a crisis. If you do not understand the causes of the crisis you cannot formulate a responsible public policy response. Seriously Reuters needs to find some financial reporters that understand both macro-economics AND finance. Opinions alone just do not cut it. I am not addicted to risk. I am allergic to mediocracy.

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By: Talleyrand http://blogs.reuters.com/great-debate/2009/02/06/saving-the-economy-from-our-brains/#comment-7400 Sun, 08 Feb 2009 22:53:00 +0000 http://blogs.reuters.com/great-debate/?p=1910#comment-7400 There are many culprits in this fiesta of idiocy. A society driven by instant gratification and by rag-to-riches myths is as much at fault as a bunch of bankers trying to make billions out of millions. The latter are virtually criminal (and as a journalist I actually heard bankers congratulating themselves for making 300 % on some schemes, while paying out 10 or 12 %. Still: bacteria require a nourishing medium to proliferate. Society’s collective ethical compass was dumped by Ronald Reagan. Let us hope that we can recover it.

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By: vj http://blogs.reuters.com/great-debate/2009/02/06/saving-the-economy-from-our-brains/#comment-7398 Sun, 08 Feb 2009 20:39:53 +0000 http://blogs.reuters.com/great-debate/?p=1910#comment-7398 We are looking for a scapgoat and we have found all of them who were greedy enough to cut the same branch they were sitting on.They all are Bernard Madoff of the world and some did out of greed mostly other people’s money and also they were selected group of one or two racial backgrounds,Enough said.peace to everybody in mind and soul.

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By: dcb http://blogs.reuters.com/great-debate/2009/02/06/saving-the-economy-from-our-brains/#comment-7397 Sun, 08 Feb 2009 20:23:38 +0000 http://blogs.reuters.com/great-debate/?p=1910#comment-7397 governments get elected by providing the populace with the things they want, and get punished for telling the american public they can’t have what they want. It should come as no surprise therefore that bubbles are encouraged at the expense of long term stability. I’d advise almost everyone to read what marc faber has to tell you. governments can intervene to prop up the economy only if they also work to minimize bubbles in a counter cyclical behavior. Until we are willing to accept this we have to realize washington will do everything in its power to get reelected ensuring the problem is delayed for a time further down the road for someone else to deal with. This is the nature of human behavior and to expect otherwise is foolish.

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By: Regeev Govindan http://blogs.reuters.com/great-debate/2009/02/06/saving-the-economy-from-our-brains/#comment-7384 Sun, 08 Feb 2009 15:38:20 +0000 http://blogs.reuters.com/great-debate/?p=1910#comment-7384 The West has put too much confidence in the unbridled market economy not taking into account the fact that man is intrisincally greedy and self centred. I sure is addititive making money especially when it not yours and the so called gurus of finance have been given too much leeway to come up with products which are so complex that nobody seems to understand how they work and is sold just because they are marketed by so called reputable firms backed by rating agencies.

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By: Peter http://blogs.reuters.com/great-debate/2009/02/06/saving-the-economy-from-our-brains/#comment-7379 Sun, 08 Feb 2009 09:03:13 +0000 http://blogs.reuters.com/great-debate/?p=1910#comment-7379 The most important thing you as an individual can do to improve the current financial climate in your neighborhood is take all your money out of the multinational bank you currently use and put it in your local credit union. Period. It’s the one act available to all of us that puts us back in local control of our money.

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By: Peter http://blogs.reuters.com/great-debate/2009/02/06/saving-the-economy-from-our-brains/#comment-7378 Sun, 08 Feb 2009 08:58:08 +0000 http://blogs.reuters.com/great-debate/?p=1910#comment-7378 “Berns, who says the brain has no mechanism for being satisfied…”The brain does have a mechanism for being satisfied. It’s located in the mind. It’s called gratitude. Gratitude, being of the mind, is a stronger emotion than lust, which is limited to the brain. Addictions, whether uncontrolled risk taking, or anything else, are uncontrolled lusts. Gratitude trumps lust. One cannot experience anger, or any number of lusts, while experiencing real individual gratitude. Addiction wisdom teaches us to access individual gratitude to control our lust. Religious wisdom teaches us to access individual gratitude through prayer. Folk wisdom teaches us to access individual gratitude by counting our blessings. When the mind accesses gratitude, it overcomes the brains lust. But there is no wisdom that teaches institutional access to gratitude. No wisdom that allows it because institutions function mindlessly to be successfull. The basic amorality of the institutional growth philosophy: Only responsible to the stockholders, must have growth, nothing else counts or matters, is a group think philosophy, precluding individual think. Institutions exploit individuals; first and foremost those individuals who work for institutional growth, who must adopt the amoral institutional philosophy to succeed. The true conflict we face today is resolving the institutional philosophy of success with the individual philosophy of success. World wide, individual taxpayers are being asked to fund financial institution losses. At some point soon we must face the fact that institutions must be allowed to fail, just like individuals. The whole institutional mindset must fail, in the form of the institution, before we will have an opportunity to change it for the better.

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By: Rufus http://blogs.reuters.com/great-debate/2009/02/06/saving-the-economy-from-our-brains/#comment-7377 Sun, 08 Feb 2009 07:46:39 +0000 http://blogs.reuters.com/great-debate/?p=1910#comment-7377 I don’t get why some people just don’t “get it” and still want to say that “the market works” and there shouldn’t be regulations governing HOW it works. Kind of like saying there shouldn’t be speed limits or safety standards: if someone goes too fast, their auto will simply blow a tire, blow an engine, spin wildly out of control and kill 30 members of a boy scout group on a bus, or some other event that ends up slowing the driver down. Any damage caused is irrelevant, since the driver did end up slowing down, didn’t he? If I put my money in a bank, I want to get it back. The only way that’s going to happen is if there are rules about how that money is to be handled in the meantime. In this case they weren’t remotely adequate, and the US has completely blown their credibility as a financially responsible nation. Their days of importance are numbered.

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