/biz/ - Business & Finance

>>8230818
Friedman: Here you've got a company like Enron which is doing fraudulent things. People on the inside know about it. One of the best ways to bring it out is to make it profitable, to make that knowledge profitable to them. A whistleblower takes a chance, doesn't gain anything by it. But a person on the inside who knows things are going wrong, who just engages in selling in Enron stock, can make money on it and at the same time serve the market purpose of driving down the price of the stock. And that alerts other people.

Caruso-Cabrera: Right now there are requirements for inside traders, they have to notify â¦

Friedman: Well, insider trading is illegal. There are people going to jail for insider trading and I think it has been a great mistake. You want more insider trading, not less. You want to give the people most likely to have knowledge about deficiencies of the company an incentive to make the public aware of that.

>>716587
Friedman.
Austrians go home pls. Your school of economics has been outdated by the Chicago school for more than half a century now.

Also, the whole premise of the Austrian school is insane. No, you can't have the benefits of mathematical reasoning without the rigor of mathematical reasoning. Fuck you von Hayek, you knew nothing about mathematics.