John Authers of The Financial Times says that one way to avoid another economic crisis is for investors to change the incentives they give to fund managers.
“The average fund manager is being paid not to beat the market… They’re being paid to accumulate assets, and that means not doing significantly worse than everybody else. It tends to encourage them all to go into move in a herd for everybody to pile into the same thing and that’s what gives you bubbles.”
(Purchase a copy of John Authers’ book The Fearful Rise Of Markets at Amazon)
Produced By: Kamelia Angelova & William Wei
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