A Quote by Myron Scholes
Innovation must lead infrastructure for a simple but compelling reason: Innovation produces new types of products and markets, and it is virtually impossible to know how to run those markets efficiently before they are created.
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Reverse innovation is an innovation that is first adopted in developing markets and flows uphill to mature markets. This concept directs forward-looking companies to look beyond industrialized nations to draw new ideas, products, and processes from emerging economies.
Financial innovation can be highly dangerous, though almost no one will tell you this. New financial products are typically created for sunny days and are almost never stress-tested for stormy weather. Securitization is an area that almost perfectly fits this description; markets for securitized assets such as subprime mortgages completely collapsed in 2008 and have not fully recovered. Ironically, the government is eager to restore the securitization markets back to their pre-collapse stature.
New products, new markets, new investors, and new ways of doing things are the lifeblood of growth. And while each innovation carries potential risk, businesses that don't innovate will eventually diminish.
There's so much innovation going on, and there are lots of people funding that innovation, but there's very little innovation on that infrastructure for innovation itself, so we like to do that ourselves to help companies create more tech companies.
Markets are a social construction, they're made from institutions. We in a democratic society create markets, we constitute markets, we bring them into existence, and we shouldn't turn markets over to a narrow group of people who regulate them and run them in their interests, rather they should be run democratically for the common good.
The thing about innovation in financial markets is they're always building on what has come before. It's a natural process.
Having created the conditions that make markets possible, democracy must do all the things that markets undo or cannot do.
While leaders spend considerable time and effort trying to envision markets and pushing out innovation, empathy can often generate simple, yet breakthrough ideas.
Energy is a sector of the economy that has been particularly resistant to innovation. This is precisely the problem. It is why we are still dependant on energy sources that are 100 to 150 years old while virtually every other sector of the economy has transformed itself. This is why we believe that the faith that many environmentalists still hold that carbon regulations and taxes will drive sufficient private sector investment into energy markets to create the kind of innovation we need is unfounded.
It is very clear that the present system of innovation for medicines is very inefficient and really somewhat corrupt. It benefits shareholders over patients; it produces for the rich markets and not for the poor and does not produce for minority diseases.
Private equity capital in each of those markets Europe and Asia - while those markets have very different characteristics - fills a niche where either strategic investors or the public markets don't go, or don't want to go for some particular reason. I think that's going to continue to be the case going forward.
I'm deeply honored to lead Deloitte. I look forward to collaborating with all our people to continue to lead our profession in quality and innovation. Together, we make an impact that matters every day for our clients, the capital markets, communities, and society.
To rein a kingdom efficiently it is necessary, before all, to put into good order the family. It's impossible for a man who doesn't know how to lead his own family to know how to lead a country.
I think markets are mechanisms that determine prices that are necessary for mass heterogenous populations, and markets do generate levels of technological innovation and productivity that is crucial. But when unregulated, they often generate levels of vast inequality and ugly isolation that makes it difficult for people to relate and connect with one another.
America is the greatest engine of innovation that has ever existed, and it can't be duplicated anytime soon, because it is the product of a multitude of factors: extreme freedom of thought, an emphasis on independent thinking, a steady immigration of new minds, a risk-taking culture with no stigma attached to trying and failing, a noncorrupt bureaucracy, and financial markets and a venture capital system that are unrivaled at taking new ideas and turning them into global products.
The full consequences of a default or even the serious prospect of default by the United States are impossible to predict and awesome to contemplate. Denigration of the full faith and credit of the United States would have substantial effects on the domestic financial markets and on the value of the dollar in exchange markets. The Nation can ill afford to allow such a result. The risks, the cost, the disruptions, and the incalculable damage lead me to but one conclusion: the Senate must pass this legislation before the Congress adjourns.
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