November 09, 2008
Optimization
A week ago I gave a talk about the causes and implications of the current economic crisis. The audience was a cross-section of typical Washington-types – lawyers, federal regulators, an economist, NGO leaders, international development experts, and an academic or two.
I covered all the usual suspects – belief-based economics, under-regulation, dumb-regulation, the banking industry’s new business model, and a few others. I also got to (try to) explain CDS’s and CDO’s.
Lots of fun. Especially afterward when I was asked to summarize the message for future business leaders in one lesson:
I covered all the usual suspects – belief-based economics, under-regulation, dumb-regulation, the banking industry’s new business model, and a few others. I also got to (try to) explain CDS’s and CDO’s.
Lots of fun. Especially afterward when I was asked to summarize the message for future business leaders in one lesson:
“Time frames matter. You’ll make more profit in the medium and long run if you don’t always try to maximize it in the short run.”
