Noah denkt™  -
    Project for Philosophical Evaluations of the Economy
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The cause of inflated short selling
Observation on a systematic problem, first drafted on April 2, published on April 5, 2008
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During the April 2 hearing of the French Senate’s finance committee economics professor Michel Aglietta was
asked if there were anything that policy makers could do to avoid future excesses in the financial markets (such
as the astronomic remuneration packages that bank executives receive). And since Prof. Aglietta had a hard time
to provide a politically feasible answer to this question, we would like to take the liberty to supplement his reply by
offering an observation of our own.

For the fact of the matter is, that there are only two practical policy measures that can truly remedy some of the
hazardous shortsightedness that is so pervasive in today’s capital markets. One of these measures pertains to
insuring an increased transparency in the financial markets by creating a  publicly financed business television
channel. And since Noah denkt™ has made the case for this before we would like to refrain from elaborating it yet
again and instead refer our esteemed reader to the relevant articles hyper-linked as follows:
“Poor Moody
Standards I”, and  “Poor Moody Standards II”.

The second measure, however, which is equally important though, has so far not yet been detailed by us. And so
it is high time that we should do so now. For too much is it the lack of a better educational system that is fuelling
these money market turbulences, that we could now still avoid adequately criticising that.

No, if we want to be honest here, we have to accept, that too many people are left stranded by our academic
formation. And so it is only logical that some of them would end up as desperado fortune hunters. For too little
have they learned to be productive otherwise that they could now still help to squeeze their luck in hazardous
money market activities.
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