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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (106787)	1/18/2010 9:54:32 PM
From: Hawkmoon	Respond to of 116555

Pray tell how is it relevant to the debate that bankers got together and conspired to crash the system for their own benefit? Having a 100% government backed "put" is quite an enticement to take on as much risk as possible in order to maximize those bonuses. It's every banker's interest to have such a taxpayer funded financial "parachute" for when things get out of hand. Thus, they didn't conspire to "crash" the system. They conspired to "push the envelope" to new levels of financial contrivance, knowing they can write legislation that makes the taxpayer bail them out. There were plenty of warning signs that sub-prime was getting out of hand. But since all the bankers looked at one another and said, "My competition is taking huge risks (and making a profit), I guess I have to as well", very few were willing to complain. Go along to get along... Hawk