Analysis of Forex Trading, Financial Markets, and Economic Policies
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Moving beyond the point that we need some type of new regulation… The question becomes: Who’s to blame for the current crisis? Or, is there even anyone to blame? If you’re talking to an everyday person, they’ll probably say it was the banks and the mortgage lenders. If you talk to someone from Wall Street, [...]
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This is an educational post covering some of the flaws in our current financial system. 1. Banker Compensation The banking compensation system has created incentives for excessive short-term risk taking. Executives are usually compensated with bonuses that are tied up to short-term profits. This puts a great incentive on executives to take larger risks in [...]
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