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> Help me understand why Wall Street greed would prefer trains that derail to ones that don’t? I don't know if it is true that they _prefer_ trains that derail
by beardedetim 4y ago
> Help me understand why Wall Street greed would prefer trains that derail to ones that don’t?
I don't know if it is true that they _prefer_ trains that derail vs ones that do not. I can try to understand their _incentives_ though.
I would assume that they are incentivized to make money _this quarter_ or _this year_. I would also assume that they aren't really _caring_ about consequences that are not _fiscal_.
Given these two incentives, if someone asked me "Should we ship this train that might derail?" I wouldn't say "no". I would ask "what are the fiscal consequences if it does?" and "How much does it cost to not?"
Famous Fight Club quote about recalls and such. Same thing with companies breaking the rules in exchange for some sort of fine. It's not that they _want to break the rules_ it's that it's they are _incentivized_ to make the choice that _increases their odds of fiscal growth_.