British History, Culture & Sports, History of Freedom, Heroes, Inventors, Brits at their, English country scene

tội cá độ bóng đá qua mạng | All Posts

Too big to fail leads to failure

In a recent speech in Edinburgh, Bank of England Governor Mervyn King said -

Why were banks willing to take risks that proved so damaging both to themselves and the rest of the economy? One of the key reasons. . .is that the incentives to manage risk and to increase leverage were distorted by the implicit support or guarantee provided by government to creditors of banks that were seen as too important to fail.

When they did fail, because they had no reason to be careful about the risks they took, British and US governments stood behind them. And who is going to foot the bill? Alas, the flames were also fanned by those who wanted to own homes and sell them for a profit without having the income to support their mortgage interest payments.

bong 365bet_free bet casino 2019_Cá Cược Thể Thao

(Please do give us your name or the name you write under in the form below and your URL if you have one. Your comment may take a little time to appear. Thanks for waiting.)