That Is The Question

As investors throw a temper tantrum for a Dubai bailout, I wanted to pose this question. If banks and investors don't deserve to lose money for lending money to build palm tree shaped islands and ski slopes in the desert, than who deserves to lose money?

2 comments:

Anonymous said...

oprah winfrey deserves to lose money imo

dukebravo said...

Exactly, this is moral hazard as a fiscal policy. Just like welfare, once banks or people drink deeply at the public trough, they never want to go thirsty again. Why should the entire public suffer for the errors of a small group of investors? Let them lose 75% of their capital and be more prudent next time around.

To answer the OP, white trash lotto winners deserve to lose money, IMO.