A simple yet enlightening illustration of Iceland's fin. mess, by Michael Lewis:
You have a dog, and I have a cat. We agree that they are each worth a billion dollars. You sell me the dog for a billion, and I sell you the cat for a billion. Now we are no longer pet owners, but Icelandic banks, with a billion dollars in new assets.
His first bestseller Liar's Poker was a good read. Though When I read about his leaving Saloman Brothers because he felt there was something wrong about the business (my understanding), I was kind of skeptical. It's the Homo Economicus assumption, you know.
Until I realized the weight of Moral Incentive in our decision making (thanks to Barry Schwartz & TED). Moral incentive, our desire to do something that may go against our material interest but in line with moral values/virtues, just to make ourselves feel good.
Moral Incentive it is. Moral incentive it has always been.
The question: is your emphasis on "Moral", or "Incentive"?
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