The common question I’m asked:
Why do bankers leverage 100 x on mass amounts of money and act so recklessly?
The answer:
Because they use your money, not theirs
Discussion
2. Answer:
Because if they fail, they will be bailed out.
This is also one of many problems with governments
Your 24yo, sitting in a risk chair at any bank in the world….. you have two outcomes after taking reckless amounts of risk with other peoples money;
1. You win - paid a $5m bonus, set for life.
2. You lose - get fired.
What would you do?