tag:blogger.com,1999:blog-1752771132348583018.post5587329469935446613..comments2024-03-29T00:50:36.331-05:00Comments on Managerial Econ: The Real Cause of the Financial CrisisLuke Froebhttp://www.blogger.com/profile/06832270922187297624noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1752771132348583018.post-48639051035719838702009-01-27T05:36:00.000-06:002009-01-27T05:36:00.000-06:00I agree. In b-school our professors teach us how ...I agree. In b-school our professors teach us how to properly use these tools. However, like any powerful tool in the hands of the wrong individual, if not used properly, someone can get hurt. I think that there were individuals using these tools in a wreckless fashion.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1752771132348583018.post-16277639084020904052009-01-26T14:32:00.000-06:002009-01-26T14:32:00.000-06:00I agree that a lot of people practicing finance di...I agree that a lot of people practicing finance didn't really appreciate or understand what they were doing. But, I think it's a pretty big leap to say that business education caused the problem. Perhaps the author's point is that business education instills a false sense of knowledge - overconfidence in one's skills in manipulating these financial weapons of mass destruction. Maybe there's some validity there. Sounds reminiscent of the Nobel prize winners who ran Long Term Capital Management into the ground.Brian McCannhttp://www.blogger.com/profile/17761477291521344241noreply@blogger.comtag:blogger.com,1999:blog-1752771132348583018.post-18885699510354781022009-01-26T14:24:00.000-06:002009-01-26T14:24:00.000-06:00While I disagree with the "mergers are always...While I disagree with the "mergers are always beneficial" statement, I think that the author raises a great point regarding the proliferation of financial services. While in b-school, I learned that the essence of business was to move assets to the highest valued use from one Professor Froeb. I also learned that there was a fine line between capitalism and greed. Classes like microeconomics, managerial accounting, marketing, operations, and organizational behavior made a lot of sense and the concepts resonated with me. But as we ventured into financial accounting, corporate financial policy, and macroeconomics, I sometimes found myself a bit confused. I questioned whether I had the intelligence to grasp some of these abstract concepts that were taking hold in the market place. At the time, I just basically dismissed my lack of understanding as perceived weaknesses in my business tool box. But low and behold as we have moved a few years down the road, I am now discovering that the individuals that professed to understand these concepts did not really have a clue themselves. None of it made sense as they crossed that line between capitalism and greed and leveraged creative financial instruments. Unfortunatley capitalism is becoming synonymous with greed and the line has become blurred. And unfortunatley the global economy could falter as a result of that blurred line. True capitalism will prevail. Business will always be about moving assets to the highest valued use, and we may be on the way to more primitive practices. For example, a former Wall Street Investment Banker may have to shine the shoes of the owner of a hot dog stand as he creates value.Anonymousnoreply@blogger.com