Davos Video: Nobel Economics Laureate Daniel Kahneman Reflects on the Failures of Alan Greenspan

In this short 3 minute clip from the World Economic Forum held in Davos a few weeks ago, 2002 Nobel Economics winner Daniel Kahneman, offers some interesting thoughts on former Federal Reserve Chairman Alan Greenspan and the failure of his regulatory framework to foresee and prevent global economic collapse.

It's a simple clip that will appeal to econowonks as well as the rest of us.  After the jump I have the full 1 hour video from Davos from which this slice was pulled.

Comments

[DJF]

The firms, especially corporations are nothing but pieces of paper, they have no interest, so don‘t expect any action to be done for the firms interest.

Only people have interest and there are two main groups. The management, both executive and board of directors and then the stockowners who actually own the corporation. And in both cases they often have very short term interests, what today’s stock price is, what this quarters dividend is and what this years bonus is. Beyond that their interest drops off greatly. The management because they get paid for daily, quarterly and yearly performance while the stockowners get their dividends and can sell off the stock if the price goes in the wrong direction. So no actual person in charge has much interest in long term and therefore long term is often just a slogan.