Quote:
Originally Posted by Clip-Clop
From his hard hitting interview with Rolling Stone magazine.
"You still have a situation where people making bets can get a huge upside, and their downsides are limited," Obama says in the edition that hits newsstands on Friday. "So it tilts the whole system in favor of very risky behavior."
|
I believe he is referring to highly leveraged derivatives trading using your companies (Shareholders) money when your bonus is based upon a percentage of profits earned. Upisde is tens of millions and the downside is oops and a loss of your job with no bonus.
I'd make that bet all day long. Back in the day Wall Street firms were Partnerships and Partners Money was at stake