Quote:
Originally Posted by Little Wombat
Anyone heard of financial risk management? This is precisely what you're SUPPOSED to do with risky investments. And if you aren't familiar with financial risk management, just drop the "financial" and you get the idea - you have to prepare for things to go wrong and have contingencies to protect the company (and, hence, your investors), etc. You buy car insurance to cover your ass in case you get in an accident. Financial risk management isn't much difference.
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It wasn't just risk management. It was risk manipulation that left everyone holding the bag...except the banks who made profits (since they assumed no risk personally and saddled us with their bad debt) who are now using our tax dollars to pay their execs even more.
I could insure myself from risk by destroying the flood plain behind my house and turning it into a canal. Then I could pass on all that flood water to my neighbors. Seem right to you? Is the avoidance of risk so sacred in finance that anything goes?