More Bailouts: No Risk, All Reward for Poor Decisions
Isn’t it ironic that the banking industry is now the least risky to be in?
With the way things are going, including another ten hundred gazillion in “bailout” money, being in the banking industry seems pretty attractive right now. You make out like a bandit when times are good, have zero incentive to mitigate risk and can “bank” on being saved when such a strategy comes to it’s natural conclusion.
There used to be a concept in our society, and especially in commerce, called “risk”. If you think about it, risk has been an underlying driver of progress in society. Planting crops, living in groups, discovering new parts of the world, buying insurance and lending money are are the result of risk mitigation. When you take that away, as we seem to be as a result of the ongoing “bailout”, there’s no punishment for bad decisions or poor risk management.
…a bit of philosophizing there, but it’s something that I’ve been thinking about for a while now, and is the #1 problem I have with the policy we’re taking right now with regard to these “bailouts”.