Most great financial innovators come from humble…

“We believe in a strong dollar … Chinese financial assets are very safe.”

Timothy Geithner (1961) American central banker and politician

Peking University, May 31, 2009 http://www.reuters.com/article/marketsNews/idINPEK12423320090601?rpc=44

“If valuation in the financial markets provides the bottom line for the performance of the company, it is labor that remains the source of productivity, innovation, and competitiveness.”

Manuel Castells (1942) Spanish sociologist (b.1942)

Source: The Internet Galaxy - Reflections on the Internet, Business, and Society (2001), Chapter 3, e-Business and the New Economy, p. 90

“The political intolerance towards the Venezuelan Bolivarian model and the desires for our immense oil resources, minerals and other great riches, has prompted an international coalition headed by the US government…a criminal commercial and financial blockade, which has been aggravated by the dispossession and robbery of our financial resources and assets in countries aligned with this demented onslaught…”

Nicolás Maduro (1962) 53rd President of Venezuela

“A prophet of the Remnant will not grow purse-proud on the financial returns from his work, nor is it likely that he will get any great renown out of it.”

Albert Jay Nock (1870–1945) American journalist

Source: Isaiah's Job (1936), III
Context: If you can tough the fancy of the masses, and have the sagacity to keep always one jump ahead of their vagaries and vacillations, you can get good returns in money from serving the masses, and good returns also in a mouth-to-ear type of notoriety … Taking care of the Remnant, on the contrary, holds little promise of any such rewards. A prophet of the Remnant will not grow purse-proud on the financial returns from his work, nor is it likely that he will get any great renown out of it. Isaiah’s case was exceptional to this second rule, and there are others, but not many.

“Thus the only practical conclusion that can be drawn under present circumstances is of the need for a financial crash.”

Jan Toporowski (1950)

"Why the World Economy Needs a Financial Crash" (1986), published in Why the world economy needs a financial crash and other critical essays on finance and financial economics (2010)

“Companies are in the midst of a revolutionary transformation. Industrial age competition is shifting to information age competition. During the industrial age, from 1850 to about 1975, companies succeeded by how well they could capture the benefits from economies of scale and scope. Technology mattered, but, ultimately, success accrued to companies that could embed the new technology into physical assets that offered efficient, mass production of standard products.
During the industrial age, financial control systems were developed in companies, such as General Motors, DuPont, Matsushita, and General Electric, to facilitate and monitor efficient allocations of financial and physical capital. A summary financial measure such as return-on-capital employed (ROCE) could both direct a company’s internal capital to its most productive use and monitor the efficiency by which operating divisions used financial and physical capital to create value for shareholders.
The emergence of the information era, however, in the last decades of the twentieth century, made obsolete many of the fundamental assumptions of industrial age competition. No longer could companies gain sustainable competitive advantage by merely deploying new technology into physical assets rapidly, and by excellent management of financial assets and liabilities.”

David P. Norton (1941) American business theorist, business executive and management consultant

Source: The Balanced Scorecard, 1996, p. 2-3

“Companies are in the midst of a revolutionary transformation. Industrial age competition is shifting to information age competition. During the industrial age, from 1850 to about 1975, companies succeeded by how well they could capture the benefits from economies of scale and scope. Technology mattered, but, ultimately, success accrued to companies that could embed the new technology into physical assets that offered efficient, mass production of standard products.
During the industrial age, financial control systems were developed in companies, such as General Motors, DuPont, Matsushita, and General Electric, to facilitate and monitor efficient allocations of financial and physical capital. A summary financial measure such as return-on-capital employed (ROCE) could both direct a company’s internal capital to its most productive use and monitor the efficiency by which operating divisions used financial and physical capital to create value for shareholders.
The emergence of the information era, however, in the last decades of the twentieth century, made obsolete many of the fundamental assumptions of industrial age competition. No longer could companies gain sustainable competitive advantage by merely deploying new technology into physical assets rapidly, and by excellent management of financial assets and liabilities.”

Robert S. Kaplan (1940) American accounting academic

Source: The Balanced Scorecard, 1996, p. 2-3

“In rich economies, stability matters a lot; small further increases in allocative efficiency matter less. Thus, policy should be heavily focused on ensuring macroeconomic and financial stability and very wary of financial innovation if it carries with it any risk of increased instability.”

Adair Turner, Baron Turner of Ecchinswell (1955) British businessman

Source: Economics after the crisis : objectives and means (2012), Ch. 2 : Financial Markets: Efficiency, Stability, and Income Distribution

“Financial markets are supposed to swing like a pendulum: They may fluctuate wildly in response to exogenous shocks, but eventually they are supposed to come to rest at an equilibrium point and that point is supposed to be the same irrespective of the interim fluctuations. Instead, as I told Congress, financial markets behaved more like a wrecking ball, swinging from country to country and knocking over the weaker ones.
It is difficult to escape the conclusion that the international financial system itself constituted the main ingredient in the meltdown process.”

George Soros (1930) Hungarian-American business magnate, investor, and philanthropist

On the 1997 Asian Financial Crisis
The Crisis of Global Capitalism (1998)

“The explosion of financial innovation unaccompanied by credible systemic regulation has made the financial system vulnerable. The resulting crisis of confidence threatens global prosperity in the increasingly interdependent world in which we live. There is, therefore, a need for a new international initiative to bring structural reform in the world's financial system with more effective regulation and stronger systems of multilateral consultations and surveillance. This must be designed in as inclusive a manner as possible.”

Manmohan Singh (1932) 13th Prime Minister of India

On the financial crisis of 2007–08, as quoted in "Full text of Manmohan Singh's speech at UN General Assembly" http://www.hindustantimes.com/world-news/full-text-of-manmohan-singh-s-speech-at-un-general-assembly/article1-340789.aspx, Hindustan Times (27 September 2008)
2006-2010

“Most great financial innovators come from humble circumstances - nothing arouses fascination with financial assets quite like their absence.”

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William J. Bernstein 29

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