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What Is the True Cost of Government-Backed Credit? — Deborah Lucas

From The Huffington Post The U.S. government is arguably the largest financial institution in the world. If you add the outstanding stock of government loans, loan guarantees, pension insurance, deposit insurance and the guarantees made by federal entities such as Fannie Mae and Freddie Mac, you get to about $18 trillion of government-backed credit. Through those activities, the government has a first-order effect on the allocation of capital and risk in the economy. The question of what those commitments cost the public is important; accurate cost assessments are necessary for informed decisions by policymakers, effective program management, and meaningful public oversight. My research and that of others has shown that if one takes a financial economics approach to answering that question — one that is consistent with the methods used by private financial institutions to evaluate such costs — it leads to significantly higher estimates than the approach currently used … Read More »The post What Is the True Cost of Government-Backed Credit? — Deborah Lucas appeared first on MIT Sloan Experts.  Read the full post >

Why an MBA is conducive to launching a startup — Max Faingezicht

Why an MBA is conducive to launching a startup A lot of discussion in the media recently has focused on whether or not entrepreneurs should spend valuable time and money pursuing an MBA degree versus gaining experience on the front lines of a startup. Some commentators such as Vivek Wadhwa even insist that an MBA subtracts from a candidate’s value. Shortly after earning an MBA from MIT Sloan School of Management, I co-founded a startup called ThriveHive (http://thrivehive.com ), which offers a guided marketing solution for small business owners. I met my co-founder Adam Blake, a fellow Sloan MBA candidate, in an entrepreneurial-focused course at the School. While neither of us believes an MBA can transform someone into an entrepreneur, earning an MBA provides a great framework for tackling the uncertainties that inevitably occur at a startup. Here’s why: Tools for Thriving amongst ‘Structured Chaos’  A startup is a completely … Read More »The post Why an MBA is conducive to launching a startup — Max Faingezicht appeared first on MIT Sloan Experts.  Read the full post >






 

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