Problems of capitalism
Problems of capitalism
Front running

Gresham's law, Systemic Risk Council

Wall Street crooks, , Better Markets

Debit card fees in US much higher than in Europe

Insider trading, Bank in Switzerland to hide assets

Hide debt by creating and obscuring offshoots (Enron)

Maintain head office in Caymans to avoid taxes

Produce in obscure countries that encourage wage slavery

Minimize raw material costs by lobbying (bribery)

Employ excessive leverage (use only borrowed money)

Reduce health insurance premiums by insuring only those who need it least

Hide negative externalities, Short termism

Ignore potential catastrophe (assume all risks are independent)

Share risks which aren't independent

“The same factors that may have reduced the probability of future systemic events, however, may amplify the damage caused by, and complicate the management of, very severe financial shocks. The changes that have reduced the vulnerability of the system to smaller shocks may have increased the severity of the larger ones.” Source

Market inertia, Alan Greenspan, Money manager capitalism