Financial crisis 2008, perpetrators, and justice

May 23rd, 2013 by Kara in Essays

Justice is an ancient concept. We often think of the term as synonymous with law or lawfulness. But a broader sense of the word is closer to fairness. Behavioral finance studies indicate people have an inherent sense of justice or fairness. This view of human nature clashes with the classical economic view of “homo economicus”. Aristotle’s definition of justice is still widely accepted today. He says justice consists in treating equals equally and unequals unequally but in proportion to their relevant differences. Justice, in other words, is giving each person her ...

Elizabeth Warren Pushes for Lower Student Loan Rates (0.75%) for One Year

May 16th, 2013 by Kara in Essays

The Senator from Massachusetts is sponsoring her first bill, “The Bank on Students Loan Fairness Act”. The purpose of the bill is ostensibly, to give students the same preference to low interest rates as banks get from the Fed’s discount window – less than 1%. (The discount window is a facility offered by the central bank that allows eligible financial institutions to borrow money from the central bank, usually on a short-term basis, to meet temporary shortages of liquidity.) The bill lets students take advantage of the same low rates ...

Por qué hay promesas que no deben cumplirse. El caso de las deudas odiosas

May 1st, 2013 by Kara in Essays

(An English version of this article is available in the Winter/Spring 2013 issue of Moral Cents: The Journal of Ethics in Finance)                  Las promesas deben cumplirse. No hay mucho desacuerdo acerca de esta afirmación. Si estuviera permitido incumplir ciertas promesas, la práctica misma de prometer—diría Kant—perdería su significado y tendería a desaparecer, pues ya no se podría confiar en nadie. En rigor, ni siquiera los utilitaristas disputarían este punto. Para ellos, un mundo con reglas confiables es mejor que un mundo sin ellas. Pues ...