Links for Tuesday, December 4, 2007

less than 1 minute read

  • Paul Krugman: Innovating Our Way to Financial Crisis – “The innovations of recent years — the alphabet soup of C.D.O.’s and S.I.V.’s, R.M.B.S. and A.B.C.P. — were sold on false pretenses. They were promoted as ways to spread risk, making investment safer. What they did instead — aside from making their creators a lot of money, which they didn’t have to repay when it all went bust — was to spread confusion, luring investors into taking on more risk than they realized.
  • Seth Godin: Thanks For Calling, Please Go Away – “Once you teach an entire organization to mistreat customers, it’s hard to fix.]” – Via Janet.