By dramatically increasing the cost of capital, the carried interest proposal will discourage the risk-taking required to start, grow and save American companies.
BRUSSELS — The European Union took a big step Thursday toward putting strict limits on the bonuses paid to bankers, hoping to discourage the risk-taking behavior that set off the financial crisis.
The European Union took a big step Thursday toward putting strict limits on the bonuses paid to bankers, hoping to discourage the risk-taking behavior that set off the financial crisis.
New bandbox ballparks also discouraged the risks inherent in sending a runner as a pitch is thrown in favor of the rewards of the long ball.
But some observers say it may discourage the very risk-taking that is essential to basic research.
Only then will market discipline begin to discourage the creation of such risk.
On this view, the way to discourage the accumulation of systemic risk is to measure it, price it and make firms pay for creating it.
The administration's plan hits the mark in recognizing that the best way to discourage the creation of systemic risk is to charge firms for creating it that is, make the polluters pay.
Last year, the Financial Stability Board created by the Group of 20 leading economies agreed on new standards intended to discourage the kind of excessive risk-taking that ravaged the financial system.
The general idea is to devise a levy that would help reduce the budget deficit, which is now at a level not seen since World War II, and would also discourage the kinds of excessive risk-taking among financial institutions that led to a near collapse of Wall Street in 2008, the officials said.
Vaughan's comments were echoed by his fellow ex-skipper and TMS pundit Geoff Boycott, who called on coach Andy Flower and batting coach Graham Gooch to do more to discourage the batsmen from taking risks after several players lost their wickets playing attacking shots.
