Less Trust = Simpler Financial System

“The more complex the transaction, the more trust is needed to sustain the transaction.”

–Robert Shiller, “Animal Spirits Depend on Trust“; The Wall Street Journal (1/27/2009)

Robert Shiller, the Yale economist who made his name calling the 2000 Stock Market Bubble, has an excellent piece in Tuesday’s Wall Street Journal explaining where the financial system is right now, and exactly how it got there.

In an era when trust has been shattered, securitization and derivatives are out, “plain vanilla” debt and credit — and a lot less of them — are in.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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