Leif Pagrotsky on Wall Street Excess
Question: What is Wall Street’s fundamental flaw?
Pagrotsky: What disturbs me about Wall Street is not that individuals who bet their own money can win if they are smart. What disturbs me is the reward system in general for employed people, that if you take big risks, if you incur big risks for your company, big risks are usually connected with high prices. Then, you earn a big bonus. But when that risk materializes and you lose, you don’t lose. Somebody else loses. Maybe not even your employee. Maybe the taxpayers. I think the bonus system, the way it has been designed in the United States, on Wall Street in particular, has amplified volatility in the markets. It has produced excessive risk taking, it has produced the excesses in lending to people who cannot pay interest on their debts, for instance, and I think that is at the heart of this problem, and when we come out of this, I say ‘we’ because we are the same in my country as well, this must be part of the lesson learned. This is a destabilizing force that should be part of regulation. I’ve had a public debate with the regulators in my country who say that the remuneration system is something between employees and employers in the financial industry. I say it is not. It is a matter for the regulators because the way remuneration is designed is an important element in stability versus instability of these markets, and that cannot be left to market participants alone.
Rewarding the financial industry for missteps and passing the buck is inherently wrong, says Leif Pagrotsky.
A new book by constitutional attorney Andrew Seidel takes on Christian nationalism.
- A new book by attorney Andrew Seidel, 'The Founding Myth: Why Christian nationalism Is Un-American', takes on the myth of America's Christian founding.
- Christian nationalism is the belief that the United States was founded as a Christian nation on Christian principles, and that the nation has strayed from that original foundation.
- Judeo-Christian principles are fundamentally opposed to the principles on which America was built, argues Seidel.
Married people even do better during the so-called middle-age slump.
We've known for a long time that married people experience better physical and mental health, just so long as they're happily married. Last year, a study out of Carnegie Mellon University found that marriage may have stress relieving properties, as those ensconced in marital bliss carry less of the stress hormone cortisol in their bloodstream, than singles or the divorced.
Chronically elevated levels of cortisol can lead to low-level inflammation throughout the body, which is a contributing factor to some of the most dreadful conditions, including diabetes, dementia, and heart disease.
Spending more time on your hobbies can boost confidence at work — even if they are sufficiently different from your job
Can rock climbing help rocket scientists?
None of us enjoys having our job cut into our leisure time. So the next time your boss asks you to work late and miss your band rehearsal or board game night, point them to a new study in the Journal of Vocational Behavior.