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A classic example of perverse incentives, (made famous by Freakonomics):
Imagine for a moment that you are the manager of a day-care center.
You have a clearly stated policy that children are supposed to be
picked up by 4 P.M. But very often parents...
Limited purpose banking (LPB) is the only credible cure. It transforms all financial companies with limited liability, including insurance corporations, into pass-through mutual fund companies.
via www.ft.com
How curious it is that the guy who wrote the script depicting our never ending story of government-induced credit expansion, inflation and collapse has remained so persistently forgotten. Must we sit through yet another performance of this tragic...
