Monday, January 9, 2012

The Great Reset Pins Fault on the Finance Sector

It's great when a book highlights the importance of engineers. Even the president gets into the act when Richard Florida quotes him as saying:

"We don't want every single college grad with mathematical aptitude to become a derivatives trader. We want some of them to go into engineering....

I like this graphic by Carl Richards. It is simple, but the essence of the book.

Kurt Andersen talks about a reset in our values and the rise of new frugality Have to follow up on the Colbert Nation video of him.

There's more bashing of the finance sector in the Chapter when he cites NYU economist Nouriel Roubini, "When you have more financial engineers than computer engineers, you know that the brightest minds have gone into something where the margin was excessive."

On the same page, he cites the blog of Michael Mandel, chief economist for Business Week. Mandel charges the decline of high tech trade and notes that "such weak performance in tech innovation paved the way for the financial bubble and ultimately the economic collapse"

"Beacause the financial sector cares almost exclusively about high accounting yields and 'profits', it misallocates capital away from firms and entrepreneurs that could best improve the real economy (e.g. by producing innovative goods through research).

Searching for images of The Great Reset, I also came across this Q&A from the South Florida Business Journal. I think he sugar coats his responses for them somewhat, but that's probably good to sell books.

He puts a pitch in for rail, which I find funny in sprawl ladened South Florida, I guess it depends on where and how, but transit in Florida has its challenges.

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