5 ms·
It's a gamble along the lines of "I bet I can invest money better than the bank". Often turns out the bank can invest money better. I wonder who convinced them
by fijal 13y ago
It's a gamble along the lines of "I bet I can invest money better than the bank". Often turns out the bank can invest money better. I wonder who convinced them to invest, er, gamble.
- fusiongyro 13y agoIn the short term I'm sure it's true. But in the long term, banks have a major advantage over us mortals: they get bailed out. So I'd imagine they tend to win in the end.
- EliRivers 13y agoIf the bank's so smart at investing, why did they give the money to someone who was going to lose it all on the stockmarket? :)
- ptaipale 13y agoBecause the borrower had good collateral, and this was good business for the bank. It is what banks are supposed to do. Bottom line: I think this is not a good case why you need more regulation of banks. It may be a case why you need more regulation of universities.
- Gormo 13y agoBefore we discuss more regulation of either banks or universities, perhaps we should first consider the extent to which we need more regulation of regulation.
- ptaipale 13y agoIndeed. That is perhaps the first priority. Too often the approach "this didn't work out, so we need more of it".