1. “New Learning” Barnard’s Inn Hall Holborn London EC1N 2HH Tel: +44 (0)20 7831 0575 Fax: +44 (0)20 7831 5208 Email : enquiries@gresham.ac.uk www.gresham.ac.uk © Gresham College 2009 Mercers’ School Memorial Professor of Commerce Michael Mainelli Diversity Rules Competition, Liquidity And Equitable Markets

2. www.gresham.ac.uk © Gresham College 2009 Outline Diversity matters Evolutionary diversity Fundamentalism in economics and finance Resilient versus robust Long finance “Get a detailed grip on the big picture.” Chao Kli Ning

3. www.gresham.ac.uk © Gresham College 2009 Credit Scrunch Liquidity inflation Deluded demutualisation Perverse Incentives Extreme Connectivity Growing externalities Fragile innovation Loss of diversity Over-leveraging Model failure Asset bubbles Lack of Competition

4. www.gresham.ac.uk © Gresham College 2009 Evolutionary Diversity

5. www.gresham.ac.uk © Gresham College 2009 Closed Belief Systems

6. www.gresham.ac.uk © Gresham College 2009 Anarchists Of The World, Unite!

7. www.gresham.ac.uk © Gresham College 2009 Current Affairs: What Is The Sound Of An Army’s Footstep?

8. www.gresham.ac.uk © Gresham College 2009 Diversity & Competition Disinformation Diversity Competition Open Protected High Low Transitional ResilientRobust Economies of Scale Information

9. www.gresham.ac.uk © Gresham College 2009 Long Finance Foundation When we can recommend a financial retirement structure to a 20 year old? When we can fund a forest? [Source: http://www.longnow.org/]

10. www.gresham.ac.uk © Gresham College 2009 Discussion 1. Does diversity improve economic decisions? 2. Without diversity can we have equity? 3. How might global trends affect economic diversity? “Get a big picture grip on the details.” Chao Kli Ning

11. www.gresham.ac.uk © Gresham College 2009 Diversity Rules: Competition, Liquidity And Equitable Markets Thank you! “Get a big picture grip on the details.” Chao Kli Ning [Source: www.ifaw.org]