Financial ‘innovation’

experience has shown that there is no innovation, however seemingly benign, that the finance sector cannot overcomplicate and overextend. Securitisation was a good idea when first adopted, but ended with the mess of subprime loans that were sliced and diced into a dog’s breakfast.

—The Economist, in Lessons to a columnist’s previous self

Financial markets’ v/s the Paris climate accords

Neither the signing of the Paris agreement nor its ratification a year later had an impact on global energy stocks, according to a working paper by Thomas Sterner and Samson Mukanjari of Gothenburg University, perhaps because these events had already been priced in. Or, just as likely, markets never believed the commitments.

The Economist: Markets may be underpricing climate-related risk

A politician after my own heart :)

Archaic, illiberal drinking laws that banned serving alcohol in pubs after 11pm were scrapped, and gambling restrictions were loosened at her behest, too. “We will give adults the freedom they deserve and yobs the tough treatment they deserve,” she said at the time

Economist: Tessa Jowell, Olympian politician