...at Business Insider talk about Wall Street, JP MOrgan and risk management:
<http://www.businessinsider.com/and-now-we-know-the-truth-about-wall-street-its-kids-playing-with-dynamite-2012-5> "Wall Street can't be trusted to manage—or even correctly assess—its own risks. This is in part because, time and again, Wall Street has demonstrated that it doesn't even KNOW what risks it is taking. In short, Wall Street bankers are just a bunch of kids playing with dynamite. There are two reasons for this, neither of which boil down to "stupidity." • The first reason is that the gambling instruments the banks now use are mind-bogglingly complicated. Warren Buffett once described derivatives as "weapons of mass destruction." And those weapons have gotten a lot more complex in the past few years. • The second reason is that Wall Street's incentive structure is fundamentally flawed: Bankers get all of the upside for winning bets, and someone else—the government or shareholders—covers the downside." They're all for socialism...when it's us covering their losses. Defenestration, it's not just for the Diet of Worms anymore.... -- Bruce Johnson "Wherever you go, there you are" B. Banzai, PhD -- You received this message because you are subscribed to the Google Groups "StrataList-OT" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/stratalist-ot?hl=en.
