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.
From computer hacking to biohacking, Dave Asprey has embarked on a quest to reverse the aging process.
- As a teenager, founder of Bulletproof, Dave Asprey, began experiencing health issues that typically plague older adults.
- After surrounding himself with anti-aging researchers and scientists, he discovered the tools of biohacking could dramatically change his life and improve his health.
- He's now confident he'll live to at least 180 years old. "It turns out that those tools that make older people young make younger people kick ass," he says.
French newspapers report that the trial hasn't lived up to expectations.
- The French government initially invested in a rural solar roadway in 2016.
- French newspapers report that the trial hasn't lived up to expectations.
- Solar panel "paved" roadways are proving to be inefficient and too expensive.
A new study estimated the untapped potential of wind energy across Europe.
- A new report calculated how much electricity Europe could generate if it built onshore wind farms on all of its exploitable land.
- The results indicated that European onshore wind farms could supply the whole world with electricity from now until 2050.
- Wind farms come with a few complications, but the researchers noted that their study was meant to highlight the untapped potential of the renewable energy source in Europe.