The UChicago econ prof, the "Zero Mostel Constraint" and Goldman Sachs

[ILoveUofC]

<p>For all of you budding econ students, here’s a short and insightful explanation of the current Goldman Sachs situation involving UChicago econ Prof. Lester Telser, the film, “The Producers” and an ever-expanding cast of Goldman Sachs players.</p>

<p>[Springtime</a> For Hitler: A Primer of the Goldman-Sachs case | The Seminal](<a href=“http://seminal.firedoglake.com/diary/41976]Springtime”>http://seminal.firedoglake.com/diary/41976)</p>

<p>

Telser loved the 1968 movie The Producers and would repeatedly claim that the “Zero Mostel Constraint” was mathematically necessary for economic models to work. He built it into many of his theories and was a required term on his homework and exams. The theory was simply this: you cannot plan for economic or financial failure — if you plan for failure, it is fraud, the model breaks down, and the outcome is dishonest.*

</p>

[Maxxwell]

<p>I wonder which university Lloyd Craig Blankfein attended.</p>

[kevin1964]

<p>Harvard</p>

<p>[Lloyd</a> Blankfein - Wikipedia, the free encyclopedia](<a href=“http://en.wikipedia.org/wiki/Lloyd_Blankfein]Lloyd”>Lloyd Blankfein - Wikipedia)</p>

[phuriku]

<p>It is almost exclusively Harvard and Stanford graduates that *****ed up Wall Street. They need to start making required ethics classes or something.</p>

[Maxxwell]

<p>Robert Ruben, Larry Summers, Barney Frank, Paul Volcker, …
Smart people indeed!</p>