Archive for January, 2011

  • The Six Root Causes of the Financial Crisis

    January 31st, 2011 by John Fullerton

    “We conclude first and foremost that the crisis was avoidable,” declared Phil Angelides, chairman of the Financial Crisis Inquiry Commission.  No act of God.  Thanks Mr. Chairman.

    The report is weak and inconclusive, with no clear root causes.  The FCIC is no Pecora Commission, the exhaustive, two year inquisition into the causes of the 1929 crash in which >> Read more

  • Goldman and Facebook: Who’s Using Who?

    January 16th, 2011 by John Fullerton

    I sure got that one wrong.

    At the end of my 2009 year end letter to Lloyd Blankfein, Chairman and CEO of Goldman Sachs, the third in an exchange that took place during the depths of the financial crisis, I predicted that Goldman clients would begin to defect, either of their own volition, or because their own >> Read more

  • Guest Post: Homo Economicus Versus Person-in-Community

    January 10th, 2011 by Herman Daly

    The problem with Homo economicus (the abstract picture of a human being on which economic theory is based) is that she is an atomistic individual connected to other people and things only by external relations. John Cobb and I (For the Common Good) proposed instead the concept of “person-in-community” whose very identity is constituted by internal relations to others in the >> Read more

  • Holistic Finance

    January 9th, 2011 by John Fullerton

    I have discussed the problem of reductionist thinking, grounded in the Enlightenment, in the past. Nowhere is reductionist thinking more in force than in finance. Derivatives disaggregate risk into component parts, and then atomized parts are reconstructed into new wholes using securitization. This process goes on, with greater and greater leverage applied until it >> Read more

  • Carnegie’s “Gospel of Wealth” and the Gates/Buffett Giving Pledge

    January 3rd, 2011 by John Fullerton

    Andrew Carnegie’s essay titled “Gospel of Wealth”  >> Read more