Most of the time, your risk management works. With a systemic event such as the recent shocks following the collapse of Lehman Brothers, obviously the risk-management system of any one bank appears, after the fact, to be incomplete. We ended up where banks couldn’t liquidate their risk, and the system tended to freeze up. Myron Scholes Read Quote
A bank needs models to measure risk. The problem, however, is that any one bank can measure its risk, but it also has to know what the risk taken by other banks in the system happens to be at any particular moment. Myron Scholes Read Quote
If someone says to you, ‘Go to an old-folks’ home,’ that’s kind of ridiculous, because a lot of old people are doing terrific things for society. Myron Scholes Read Quote
Sometimes the early bird gets the worm, but sometimes the early bird gets frozen to death. Myron Scholes Read Quote
All models have faults – that doesn’t mean you can’t use them as tools for making decisions. Myron Scholes Read Quote
Keynesian modelling relies on marginal propensity to consume and marginal propensity to invest. The idea that if we give more money to the poor, they have a propensity to consume that’s much higher than the wealthy, though I wish they would talk to my wife about that; she seems to have a propensity to consume. Myron Scholes Read Quote
Tax incentives might spur hiring in the short run, but how lasting are those gains if the jobs expire with the tax credits and they come at the expense of investing in the new technologies of the future? Myron Scholes Read Quote
