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FT Alphaville — ... UBS’s senior economic adviser writes : The debate about longer working lives is normally framed in terms of the rights or the capacity of individuals to do so. However, this debate goes further than humanitarian issues. It is forcing us to think about the unique change in age structure that is evolving and how we can deliver economic growth in the future, given the forthcoming waves of retiring baby boomers, who will not be replaced in the workforce by their progeny. Insight: Andrew W. Lo on regulating human nature The Harris & Harris Group professor at the MIT Sloan School of ...

Links 7/21/09
naked capitalism — ... tip reader DoctoRx) Man bursts into flames after being hit by Taser Telegraph The Case Against Larry Summers Elizabeth McDonald (hat tip Barry Ritholtz) Despite the meltdown too many still think money = brains Collateral Damage The Decline and Fall of Hillary Clinton Nile Gardiner Losing my religion for equality Jimmy Carter, The Age Is Something Wrong with Certain Kinds of Trading? Cassandra Insight: Regulating human nature Andrew Lo, Financial Times Treasury clashes with Tarp ...

Tuesday links: incremental yield
Abnormal Returns — ... Andy Lo, “The implications of the AMH for regulatory reform are significant. Markets can be trusted to function properly in normal times, but if humans are subject to emotional extremes, animal spirits may overwhelm rationality, even among regulators and policymakers.”  (FT also ...

EMT, AMH: Edwards and Montier ride again
FT Alphaville — ... , the pair revisit their earlier arguments and take on MIT professor Andrew Lo, who earlier this week penned an FT article on AMH. Lo notes that the increasingly fierce debate over EMH - which implies that regulation is largely unnecessary because markets allocate resources and risks efficiently via the ‘Invisible Hand’ - may well help determine the new regulatory landscape. But markets, he concludes, are not always efficient, nor are they always irrational – they are adaptive. This “adaptive markets hypothesis” – essentially what Lo calls an evolutionary biologist’s view of ...

EMH, AMH: Edwards and Montier ride again
FT Alphaville — ... , the pair revisit their earlier arguments and take on MIT professor Andrew Lo, who earlier this week penned an FT article on AMH. Lo notes that the increasingly fierce debate over EMH - which implies that regulation is largely unnecessary because markets allocate resources and risks efficiently via the ‘Invisible Hand’ - may well help determine the new regulatory landscape. But markets, he concludes, are not always efficient, nor are they always irrational – they are adaptive. This “adaptive markets hypothesis” – essentially what Lo calls an evolutionary biologist’s view of ...