Phrase by 'Myron Scholes'

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Most of the time, your risk management works. With a systemic event such as the recent shocks following the collapse of Lehman Brothers, obviously the risk-management system of any one bank appears, after the fact, to be incomplete. We ended up where banks couldn't liquidate their risk, and the system tended to freeze up.

Author: Myron Scholes - Canadian Economist
  Your , Time , Management , Freeze


Sometimes the early bird gets the worm, but sometimes the early bird gets frozen to death.

Author: Myron Scholes - Canadian Economist
  Sometimes , Early , Death , Bird


Every side of a coin has another side.

Author: Myron Scholes - Canadian Economist
  Every , Side , Another , Coin


A futures contract is a derivative, but the futures exchange doesn't call them 'derivatives,' they call them 'futures.'

Author: Myron Scholes - Canadian Economist
  Call , Them , Contract , Exchange


My view is that one should diversify broadly across different fund investments. However, it's tough for investors to try to pick the appropriate risk level that they should manage their funds at. Having a personal adviser would be helpful.

Author: Myron Scholes - Canadian Economist
  View , Tough , Risk , Try


All models have faults - that doesn't mean you can't use them as tools for making decisions.

Author: Myron Scholes - Canadian Economist
  You , Decisions , Tools , Mean


I'm a theorist, not an institutionalist.

Author: Myron Scholes - Canadian Economist
  Theorist


If someone says to you, 'Go to an old-folks' home,' that's kind of ridiculous, because a lot of old people are doing terrific things for society.

Author: Myron Scholes - Canadian Economist
  You , People , Home , Society


A bank needs models to measure risk. The problem, however, is that any one bank can measure its risk, but it also has to know what the risk taken by other banks in the system happens to be at any particular moment.

Author: Myron Scholes - Canadian Economist
  Moment , Know , Problem , Measure


Keynesian modelling relies on marginal propensity to consume and marginal propensity to invest. The idea that if we give more money to the poor, they have a propensity to consume that's much higher than the wealthy, though I wish they would talk to my wife about that; she seems to have a propensity to consume.

Author: Myron Scholes - Canadian Economist
  Money , Wish , I Wish , Wife


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