5 ms·
That isn't what I mean. The moral hazard is caused by the bailouts. It isn't about the sum itself. Merely the guarantee that the tab for large gambling losses w
by ImHereToVote 2y ago
That isn't what I mean. The moral hazard is caused by the bailouts. It isn't about the sum itself. Merely the guarantee that the tab for large gambling losses will be taken by the taxpayers.
- rjsw 2y agoWe should have shot a few bankers in 2008 to encourage the others.
- immibis 2y agoHow about one in 2024?
- skywhopper 2y agoIt’s 2025.
- immibis 2y agoBut the CEO was killed in 2024.
- pipes 2y agoQuite a broad term "bankers". Who does that include?
- pjc50 2y ago- not gambling, mortgages - not in the end a loss (banks taken into government ownership eventually sold for about the acquisition price - bank shareholders lost their money - you don't want to see everything turned into Northern Rock bank runs
- ImHereToVote 2y agoThe banks should have been nationalised.Iceland was able to solve they Monte Carlo GFC event without creating a moral hazard.
- pjc50 2y agoThey DID nationalise the banks! https://researchbriefings.files.parliament.uk/documents/SN05748/SN05748.pdf https://researchbriefings.files.parliament.uk/documents/SN05... They ended up with 100% of Northern Rock and Bradford and Bingley; 84% of RBS, and 43% of Lloyds.
- ImHereToVote 2y agoThanks for that info. Live and learn.
- pjc50 2y agoThankyou for this comment. The GFC is a complicated subject; there WAS a lot of reprehensible behavior, but it's often not correctly identified because people like simple problems with clear villains. The history of Anglo-Irish Bank is an even more interesting story; Sean Quinn is one of the few bankers who was actually jailed, even if only for a short time.