Joseph E Stiglitz on managing risk

by Stephen Balbach @ Asortablog
April 6, 2011


"A system that socialises losses and privatises gains is doomed to mismanage risk."
--Joseph E Stiglitz (Nobel Laureate Economics)
A simple idea that encompasses so much. Hurricane Katrina, Financial crisis, Japanese earthquake, Nuclear meltdowns and Global Warming. As Stiglitz points out, "when others bear the costs of mistakes, the incentives favour self-delusion".
(Yomiuri Shimbun/AFP/Getty Images)