Risk and our attitude to it - excellent article by economic Nobel Laureate

[Knobby22]

Worth a read.- from today's Age.

http://www.theage.com.au/business/w...asket--you-weigh-the-risk-20110407-1d630.html

"Research in economics and psychology helps us understand why we do such a bad job in managing these risks. We have little empirical basis for judging rare events, so it is difficult to arrive at good estimates. In such circumstances, more than wishful thinking can come into play; we may have few incentives to think hard at all. On the contrary, when others bear the costs of mistakes, the incentives favour self-delusion. A system that socialises losses and privatises gains is doomed to mismanage risk."

 

[burglar]

Re: Risk and out attitude to it - excellent article by economic Nobel Laureate

A good read!
Thank you, Knobby22

 

[white_goodman]

Re: Risk and out attitude to it - excellent article by economic Nobel Laureate

and thus we get to the motive for the piece..

"For the planet, there is one more risk, which, like the other two, is almost a certainty: global warming. If there were other planets to which we could move at low cost in the event of the almost certain outcome predicted by scientists, one could argue that this is a risk worth taking. But there aren't, so it isn't."

its no secret Stiglitz has an agenda to push

 

[Wysiwyg]

Re: Risk and out attitude to it - excellent article by economic Nobel Laureate

and thus we get to the motive for the piece..

Yes, easy see through waffle.

 

[tothemax6]

Stiglitz is a dunce, Nobel Laureate or not.
I always have a good laugh at his past appearances on TV, when for instance, he claims the level of debt in Greece is 'not an issue, because they can borrow at low interest'.