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Re: Lessig also is cactus

By: orda in ALEA | Recommend this post (0)
Sat, 08 Oct 11 4:05 AM | 65 view(s)
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Msg. 05974 of 54959
(This msg. is a reply to 05971 by Cactus Flower)

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The problem really began when they became publicly traded entities and had to show "growth" every quarter. This led to having to make up "innovative" new products like CDOs and MBSs and derivatives. The crock of shit they sold to the all of the world.




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The above is a reply to the following message:
Re: Lessig also is cactus
By: Cactus Flower
in ALEA
Sat, 08 Oct 11 2:13 AM
Msg. 05971 of 54959

Hi orda,

Well, that is ktc's line.

I don't want them castrated, devastated, defenestrated. I just want them gone and to put people in charge who understand the issues.

From a Wall Street angle, that means define a downside to risky transactions. If they can lose as well as win, they'll take sensible risks. But if you get ten bets in which you can make a million if you win one of them, and you lose nothing if you lose the others, who isn't going to take the risk. Yet in that scenario, 9 out of the 10 people who invested their money lost it. The broker walks away happy. The losers don't even realise they were had. They just think they were unlucky.

In sum, this is the incentive scheme called Wall Street.


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