Understanding Greed and Incentives on Wall Street

The video discusses the role of greed on Wall Street, suggesting it is a professional obligation rather than a problem. The issue arises when incentives encourage short-term, high-risk behavior. Properly structured incentives could channel greed positively. The video also highlights how financial expectations have shifted over the years, leading to increased risk-taking as individuals aim for larger paydays.

How does the speaker compare greed on Wall Street to another profession?

• Like a doctor needing to be compassionate

• Like a comedian needing to be funny

• Like a teacher needing to be knowledgeable

• Like an artist needing to be creative

What is the main issue with incentives on Wall Street according to the speaker?

• They encourage long-term planning

• They promote ethical behavior

• They focus on customer satisfaction

• They lead to taking large risks for short-term gains

What does the speaker suggest could happen if incentives were properly aligned?

• Greed would be channeled positively

• There would be no change

• People would leave Wall Street

• Greed would disappear

How have financial expectations changed on Wall Street over the past 25 years?

• They have become more conservative

• They have remained the same

• They have increased, leading to more risk-taking

• They have decreased significantly

What is the speaker's view on the current financial situation?

• It is irrelevant to Wall Street

• It requires a radical downward adjustment

• It is stable and predictable

• It is improving rapidly