Other People’s Money

Sunlight is said to be the best of disinfectants; electric light the most efficient policeman. – Louis D. Brandeis. Other People’s Money and How the Bankers Use It (1914)

The problem with Other People’s Money (OPM) is investors are not as careful spending it as they are with their own. They take greater risks than warranted. They don’t scrutinize as closely as they should. They don’t check to see if they are being blinded by undue optimism. They don’t build sufficient protections or stop-loss triggers into investments.

How do we as a society institutionalize an investment culture that encourages private risk-taking but not recklessness? We’re not just interested in fraud. We seek to correct an attitude that often considers other people’s money as less important than our own.

How do we prudently invest grandma’s retirement money?

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A Jobs Proposal

A massive federal Jobs Agency with broad authority as to the means to create jobs. Sounds like a recipe for disaster. Patronage. Special Interests. Bureaucracy. Waste & Inefficiency. I’m afraid I’ll look back one day and hang my head in shame at what is written here, given my libertarian leanings. What are the chances for making this a success? Probably zero. Piecemeal solutions. Half-hearted implementations. Cherry-picking. Dumbing down. This proposal will die a thousand deaths in committee before it ever sees the light of day. At least I provide ammo enough to kill the many inferior solutions being offered.

So why even care?

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