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Exact(13)
As Volcker observed, the investment banks stopped investing in truly productive ventures and turned into "trading machines instead of investment banks," resulting in "encroachment on the territory of commercial banks, and commercial banks encroached on the territory of others in a way that couldn't easily be managed by the old supervisory system".
Instead of investment, the government looks to philanthropy.
He said the next batch of pension obligation bonds would have an investment-grade rating, because they would be backed by property taxes instead of investment returns from the firefighters' pension fund.
That way, instead of investment banks playing matchmaker between parties, an exchange will do it with strict rules in place, eliminating billions of dollars in exposure and creating more transparency.
"Instead of investment in a scheme that, at best, provides a short-term election soundbite, the government would be better placed to invest in schemes with the potential to improve the long-term health of the whole UK population," it says.
Why acquisition instead of investment?
Similar(44)
The government's failure to rein in spending — and its decision to spend on yet more highways and toll roads instead of investments that could produce direly needed economic and export growth — has soured relations with the opposition Social Democrats.
So, instead of investment-led expansion of the economy, the now larger services sector is more labour-intensive.
He suggested using projects as the elements of a portfolio (instead of investments) to better achieve an organization's objectives as well as reduce the overall risk that the organization encounters during execution of those projects.
However, this approach also bears the disadvantage of being based on realistic but hypothetical investment decisions and of measuring investment intentions instead of actual investments.
Another possible extension of this work can be done by assuming a discrete investment to reduce the vendor's setup cost instead of continuous investment.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com