--- title: "Meaning & Key Takeaway of: The money has to be deferred with what…" description: "\"The money has to be deferred with what they call \"clawback,\" which means they can get it back if I lose it all. So that guy making ten million a year s..." image: "https://sms4smile.com/quotes/i/0fc/richard-thaler-3060_credit_the-money-has-to-be-deferred-with-what-t_1732780.png" --- # The money has to be deferred with what they call… ![“The money has to be deferred with what they call "clawback," which means they can get it back if I lose it all. So that guy making ten million a year selling credit default swaps, if we're going to keep five million of it in escrow for ten years, and with the right to go back and get it, if he…” quote by Richard Thaler](https://sms4smile.com/quotes/i/0fc/richard-thaler-3060_credit_the-money-has-to-be-deferred-with-what-t_1732780.png) [Download](https://sms4smile.com/quotes/i/0fc/richard-thaler-3060_credit_the-money-has-to-be-deferred-with-what-t_1732780.png) [Open image](https://sms4smile.com/quotes/i/0fc/richard-thaler-3060_credit_the-money-has-to-be-deferred-with-what-t_1732780.png) > “The money has to be deferred with what they call "clawback," which means they can get it back if I lose it all. So that guy making ten million a year selling credit default swaps, if we're going to keep five million of it in escrow for ten years, and with the right to go back and get it, if he starts losing money, then we're going to give people the right incentives not too take so much risk.” [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. He explains a clawback mechanism to deter excessive risk by returning funds if losses occur. **In simple terms:** Clawback returns money if you lose it. Key Takeaway Use incentives to limit risky behavior. Themes risk management finance incentives Mood cautious analytical Type policy financial When to use this quote - structuring executive compensation - designing insurance policies - regulatory compliance Key Concepts clawback credit default swaps escrow Questions to Reflect On - How effective are clawbacks in practice? - What alternatives exist to curb risk? A Different Perspective Complex contracts can be hard to enforce. ★ ★ ★ ★ ★ No ratings yet [Credit](https://sms4smile.com/quotes/about/credit/) [Credit default swap](https://sms4smile.com/quotes/about/credit-default-swap/) [Giving](https://sms4smile.com/quotes/about/giving/) [Incentives](https://sms4smile.com/quotes/about/incentives/) [Losing money](https://sms4smile.com/quotes/about/losing-money/) [Money](https://sms4smile.com/quotes/about/money/) [People](https://sms4smile.com/quotes/about/people/) [Risk](https://sms4smile.com/quotes/about/risk/) [Selling](https://sms4smile.com/quotes/about/selling/) ## Related quotes > [Is there a market for somebody selling a credit card that helps people pay down their balances? I think the question is yes. 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