there's another way to think of it (without really ignoring the role of the government, moral hazard, adverse selection, etc.) Okay, there are a lot of bankers and quasi-bankers who got involved in the massive speculative bubble that characterized US and many world financial markets up to 2006 or so. The big problem is usually that end of the bubble is like a game of musical chairs (cf. Keynes). You don't want to sit down too early or too late. "Too late" means that you get caught in the rush for the chairs when asset prices are falling drastically.
The thing is that bankers and their ilk have a tremendous inside advantage. They can give themselves massive salaries and bonuses _after_ the music has stopped, after they _know_ it has stopped. They can profit big time even though they're getting out late. Not only that, but our friends Henry P. and Tim G. give them a sop. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
