Tuesday, June 25, 2013

They Can't Help Themselves

It looks like bankers really can't resist the temptation to make wild bets with other people's money. The recent convulsions in world markets seem more prompted by the perceived necessity of punishing some of these wild bettors than anything else. Bernanke whispers, China squeezes, and 4 trillion dollars go poof. See, e.g., Cowen and Bloomberg.