The Satisfaction ConundrumOctober 22, 2012 Posted by: Joe Morgan, CFA
Well I was movin' down the road in my V-8 Ford
I had a shine on my boots, I had my sideburns lowered.
With my New York brim and my gold tooth displayed
Nobody give me trouble 'cause they know I got it made
I'm bad, I'm nationwide.
No matter how much I am around technology, I am continuouslyamazed. As a truly non-technical person myself, it all seems likemagic.
Currently, I am moving at 524 mph at 39,405 feet linked not only tothe Internet, but to Silicon Valley Bank's internal network where Ihave access to everything I do at the trading desk. I can swipe acredit card and order a drink, a meal or a movie on my personalscreen. Best of all, when I land I am assured my BlackBerry willnot go crazy with new messages as I can clean my in-box in betweenthoughts as I write this.
My farmer grandfather would never understand the above paragraph -and he only passed some 35 years ago. What will the next 35 yearslook like?
Thinking back, it is easy to see that most recent innovation camewithout any government regulation attached. Indeed, almost bydefinition innovation is generated in the mind of the innovator,unnoticed by others including the government. Perhaps this is whatgives me pause about last week's focus on the regulatoryenvironment.
There is a price for everything - there is no free lunch as theysay. And the price of innovation is risk. Entrepreneurs know thiswell on the individual level, but it also exists on a societallevel. As a society, we can allow free thinkers to explore theouter limits of their imaginations, perhaps finding a nugget ofadditive creativity among many of Charlie Brown's rocks stored upfrom Halloweens past. The benefits of the nuggets run for decades,while the costs of the rocks end quickly. But regulate the boundsof our activities and those nuggets willnever be discovered.
It is hard to disagree that Wall Street went a little crazy in thepast decade or so, especially when it comes to the mortgage market,CDS or other financial creations. But is the answer increasedregulation?
Don't the investors share any of the responsibility?...Read More