Shak: Bankers are too reckless

If you give someone $10,000 to gamble in a casino every morning and he leaves every night with either a percentage of any profits or nothing at all, he can’t be expected to play conservatively. As this economic crisis has persisted, we have become increasingly aware of the dangers of moral hazard, the concept that […]

City

BUSINESS COLUMN | Shak: Leverage: the path to stability?

Most economists, politicians and businesspeople have accepted the business cycle as unavoidable and see the Fed Funds Rate, the key interest rate controlled by the Federal Reserve Bank, as the main means of smoothing out that cycle. However, with the Fed Funds Rate at essentially zero, the Fed has run out of conventional ammunition for […]

City

Shak: Stop CEO greed — follow the money

The benefactor of the Thain Family Café, former Merrill Lynch CEO John Thain, seems to have become one of the most noteworthy examples of Wall Street greed in the media. His story exposes not only the extravagance of Wall Street, but also the government’s insufficient oversight of the corporate sector. On Tuesday the Attorney General […]

University

Shak: In crisis, mindset at fault

Guest Column

Shak: Elis will feel sting of banks’ fall

Guest Column