Federal Government Should Be Borrowing More Right Now
Hoisted from Comments: Robert Waldmann Smacks Down John Scalzi

What Are the Core Competences of High Finance?

The core competences of high finance are supposed to be (a) assessing risk, and (b) matching people with risks to be carried with people with the risk-bearing capacity to carry them.

Robert Waldmann has a different view:

Limits to Arbitrage Bites Again: I think their core competencies are (a) finding fools for counterparties and (b) evading regulations/disguising gambling as hedging.

Regulatory arbitrage, and persuading those who do not understand risks that they should bear them--those are not socially-valuable activities.