Jun 19: RICHARD THALER on Obama's new regulation

Richard Thaler, professor at Booth School of Business at the University of Chicago and co-author with Cass Sunstein - now President Barack Obama's "regulation czar" - of Nudge: Improving Decisions About Health, Wealth, and Happiness, talks about the recent regulatory reforms of the financial system proposed by the Obama administration. He says the idea that mortgages should be classified as easy or simple reflects the philosophy of Nudge. To prevent future financial crises, incentives have to be built into the system. He believes the way people are paid should be changed, without specific restrictions on the amount that is paid