RiderX

A pretty interesting article by David Brooks make some interesting points about our current financial situation. I have only one objection to his article: He suggests that perceptions formed in the decision making process are not affected by information gathered in the decision making process. He didn’t explicitly say this, but he did not explicitly state that the decision making process is a loop of perception, influenced by information gathering until a decision is made. Late in his article he references government policy makers resistance to a ‘feedback mechanism.’ I think this is spot on.

Mr Brooks make some really insightful points about human nature and it’s impact here. A very good read

Incidently, there is reference to Alan Greenspan’s congressional testimony last week. I must say that I’m pretty disappointed in Greenspan. To suggest that his fundamental understanding of markets was not correct is unfortunate. By conceding this, he removed any corrective mechanism the market has, the cost of failure. His concession and the entire bailout removes the fundamental incentive to self-regulate: consequences.