"The next question is what choice will the banker make for the investment of the increased reserves?"
Executive bonuses of course. Mustn't forget those bonuses. Is this not the most productive use of the money (as seen by executives)?
On another note, I have not seen much in the way of commentary on the fact that all the acquisitions being carried out with TARP money are concentrating larger and larger chunks of the banking industry under the control of the people who made the biggest mess of banking in history.
Can such a grand exercise in moral hazard be a prudent move?
The Banker's Choice [View article]
Executive bonuses of course. Mustn't forget those bonuses. Is this not the most productive use of the money (as seen by executives)?
On another note, I have not seen much in the way of commentary on the fact that all the acquisitions being carried out with TARP money are concentrating larger and larger chunks of the banking industry under the control of the people who made the biggest mess of banking in history.
Can such a grand exercise in moral hazard be a prudent move?
Just wondering ...
Bigger is Not Better in Banking [View article]
Thomas Jefferson
Kinda the exact opposite of our banking system.