Tuesday, May 5, 2009

Bankers: Ready, Aim, Fire?

This is what they do to bankers in Iceland - or at least to the ones who fled the country after the collapse. Now this doesn't mean I'm suggesting any Irish pub should do the same, tut tut. Perish the thought.

Still, it is an interesting example of behavioural economics at work: instead of doing something so unhealthy as drowning your sorrows why not, er, vent your feelings on those who caused them in the first place? You're happy, society's better off (less costly than rioting) and it provides the right incentives for bankers to behave themselves in future.

It's not quite where folks thought behavioural economics would end up after 250 years - but then it's the unpredictability that makes it such an interesting subject after all.

1 comment:

  1. Amusing.
    Whilst it is easy to attack "Bankers" in a vague and amphorous way,it is not intellectually speaking, of much use. Railing about "bankers" is of little use and it reeks of mob mentaility.

    We need to be more precise in who to focus our collective ire on so that we don't repeat the same mistakes again.

    However, this is a global economic and financial crisis, whose roots lie in the disastrous neoliberal policies that were foisted upon an unwilling world due to the rapacious greed of some.

    It would be better if we added the pictures of the following rogues gallery in the urinals, as they are the culprits that are responsible for this economic crisis in my view.

    Milton Friedman, Alan Greenspan, Ronald Regan,US Senator Phil Gramm(for repealing the Glass-Steagal Act,Margaret Thatcher, Charlie McCreevey,Gordon Brown, George Bush,Dick Fuld(Lehamn's boss)and yes,western consumers for over extending themselves.

    The Guardian had a great piece on whose pictures we should be urinating on.

    http://www.guardian.co.uk/business/2009/jan/26/road-ruin-recession-individuals-economy

    ReplyDelete

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