Occupy Recruiting

A great article in The Crimson: “Targeting financial firms is exactly what Occupy Harvard should be doing” .  Read the full article here.

This kind of inequality in and of itself is troublesome. Study after study has found that unequal societies are more likely to be politically polarized, experience slower growth than more equal societies, and even have higher divorce rates. But it is especially troublesome because it is ill-gotten. As Cowen explains, a major reason that finance went from the mundane business of making loans to the profit-producing behemoth it is today is that financiers have started to make huge, leveraged bets against improbable events. Usually, these bets pay off big and make the gamblers making them millions. Then 2008 happens, the bets fail, and the whole economy implodes. The bankers get bailed out and don’t suffer. The rest of us are screwed.

This sort of betting is of no social value. Bankers will tell you that it allows for more efficient pricing of assets, but if the last decade taught us anything, it’s that it actually leads to bubbles where assets aren’t priced accurately at all. It’s destructive, greedy behavior. It hurts real people. It puts people in poverty and throws families out on the street. Those who engage in it, from hedge fund managers to analysts just out of Harvard, are doing something gravely immoral. …

This entry was posted in General.

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