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The pandemic may be the proximate cause. But Petersen is saying the sufficient cause is Modern finance with its obsession with "Return on Equity." With a mo
by CalChris 5y ago
The pandemic may be the proximate cause. But Petersen is saying the sufficient cause is
Modern finance with its obsession with "Return on Equity."
With a more robust economic system not so beholden to return on equity, this may not have happened even given the pandemic. Without such a robust system, other proximate triggers can cause similar effects.
- vmurthy 5y agoNot being snarky but I find it hard when well-meaning folks like Petersen don't give alternatives. Maybe the obsession with RoE is bad but what's the alternative? What measure should CEOs care about if the shareholders who put them in charge aren't happy?