What did banks learn over the last several days? They can have poor risk management and the government will make their debitors whole again. That means even riskier capital management in the future. It's a win/win situation for them.
Discussion
Yup
I should build a silicon valley.
Dangerous precedent
brb about to start a silicone valley bank that offers bleeding edge financial products, 50% yield guaranteed with ZERO downside risk
But, but, but there's no such thing as a "moral hazard." That's conspiracy theory stuff... it's not like we've seen bad behavior over, and over, and over again... we've never seen banks get less and less responsible every single time they fail and get bailed out...
Wait...
I can't even pretend to be this stupid for long.
Sorry, not my best work.
Leave it to the government to reward failure and bad behavior. And they wonder why this keeps happening…
I bet we would see less of this behavior if bailouts came with jail time and being barred from working in the banking/financial industry ever again.
They learned nothing from 2008 and will learn nothing from this time too.
🤡🌎
No one is going to buy their equity however
Correct.
But supposedly they haven't only known this since yesterday... and neither do we. 😤
I think it's more along the lines of traditional "good" risk management doesn't work so well in a rising interest rate environment.
That's why the risk of failure is a part of the story of life, because without the risk of real failure for making a reality violating choice a person doesn't become sensitized to what's real, and therefore become ensnared to bondage and darkness.
That's why Bitcoin works, because there is no insurance against reality violating decisions, and therefore people are forced to pay the price for their selections, good or ill.
Bitcoin and Reality will not be mocked. Whatever a man sows, that shall he also reap.