Myron S. Scholes, 57
Nobel laureate in economics, co-creator of the Black-Scholes option pricing model; original partner, Long-Term Capital Management LP; consultant to Robert M. Bass; professor emeritus, Stanford University
"You think (capital raising) is developed, but in the next 100 years you will say it's embryonic. (Friction in the system) leads to inefficiencies that someone will learn to exploit. There may be finer gradients (of securities).
"Maybe banks won't be here 100 years from now. Whole new institutions may be born . . .
"I think the separation of the state and economy is crucial. Marrying the economy and the state (through schemes such as Social Security) could cripple managements' way of doing things.
"Try to get the Social Security system to do what it's supposed to do. You have to have some type of system where people are free to make choices.
"Everybody starts out (with pure intentions) like in Social Security, but it ends up getting contaminated."
