BANKERS BONUSES

David Le Cardinal/500px

Focusing On Run Rates Will Make Losers Of Us All

Being a citizen of a country obsessed with cricket, the only run rate that I ever knew was the runs that a batsman makes per over - until I recently learnt that even businesses (read e-commerce enterprises) are getting discounted and valued on their run rates, defined by Investopedia as "how the financial performance of a company would look if you were to extrapolate current results out over a certain period of time." But there is another side to this story of how calculations based on "run rate" have brought the world to the precipice of destruction and collapse.