> From: Nathan Newman <[EMAIL PROTECTED]> > Subject: [PEN-L:11881] Re: Risk and Unequal Opportunity under cap > In some ways, the more interesting aspects of risk management are in the > Grameen Bank and community banks around the US. . . . > This doesn't erase risk but collectivizes it in interesting ways, an > important model for any form of market socialism that might have > collective entrepreneurship by small enterprises or work groups. Your post pressed some buttons and made me resolve to read Bernstein's book. Incidentally, there are other types of socialized risk pooling in the Third World involving clubs. A friend of mine who is a development economist, John Edwards at Tulane, has written about them. I agree that all this is interesting, for the U.S. as well, not because Grameen is some kind of cure-all, but as a lead-in to thinking about market failure in capital allocation. With some stretching, one could imagine a line from these types of arrangements to traditional populist critiques of finance and proposals for new banking systems. Cheers, MBS =================================================== Max B. Sawicky Economic Policy Institute [EMAIL PROTECTED] 1660 L Street, NW 202-775-8810 (voice) Ste. 1200 202-775-0819 (fax) Washington, DC 20036 http://epn.org/sawicky Opinions above do not necessarily reflect the views of anyone associated with the Economic Policy Institute other than this writer. ===================================================
