Decision Quote by Michael Lewis
“What are the odds that people will make smart decisions about money if they don't need to make smart decisions--if they can get rich making dumb decisions? The incentives on Wall Street were all wrong; they're still all wrong.”
About This Quote
Source Book: Flash Boys, 2014, Michael Lewis
Wall Street incentives reward reckless risk, leading to poor financial decisions.
In simple terms: Bad incentives cause bad money choices.
Key Takeaway
Demand better incentives.
Themes
finance
ethics
incentives
risk
Mood
critical
concerned
Type
analytical
inspirational
When to use this quote
- investment
- policy
- regulation
- personal finance
Key Concepts
moral hazard
systemic failure
Questions to Reflect On
- How can we align profit with responsibility?
- What reforms could reduce reckless behavior?
A Different Perspective
Changing incentives is politically difficult.
![“Crucial decisions are made, today as thousands of years ago, in terms of the intuitive guesses and preferences of a few men in positions of authority...[it is] quite likely that the fate of entire societies may be sealed by a series of avoidable mistakes committed by their leaders.” quote by Michael Lewis](https://sms4smile.com/quotes/img-quotes/a59/michael-lewis-705_decision-making_crucial-decisions-are-made-today-as-thou_16888.jpg)
