The big 5 investement bankers asked for a rule change at the SEC — that this article said created a situation where the information that might have predicted the current crisis became invisible.
The man representing Goldman Sachs at the table, then became Treasury Secretary Paulson.
Markets do not operate well when information is obscured.
An example of where market failure is precipitated by public value failure
Filed under Market Failure, Policy
An opinion piece hypthosizes how an assumption on the isolation of risks in the Wall Street risk models was wrong…
Filed under Market Failure, Policy
This article in the New York Times recounts Bernanke’s theory of information capital (and the deficit thereof) leading to the great depression.
The failure to provide adequate information to the market — is that a market failure? If so, does such a failure require a public intervention?
Filed under Market Failure
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