Great article. The main part that hit home was the notion that "banking institutions take increasingly greater risks since their losses are subsidized by taxpayers". Although I am still in the process of developing my own beliefs in macro theory I believe these institutions have the utmost responsibility to its citizens to operate in a fiduciary manner. Instead it seems they use their own citizens as leverage against the government, as leaders want to avoid the economics pains of a failure at all costs, and banks abuse this relationship to take abnormal risks.
Best,
Slaiman Atayee
James Madison University Class of 2015
Finance
Mr. Voss,
Great article. The main part that hit home was the notion that "banking institutions take increasingly greater risks since their losses are subsidized by taxpayers". Although I am still in the process of developing my own beliefs in macro theory I believe these institutions have the utmost responsibility to its citizens to operate in a fiduciary manner. Instead it seems they use their own citizens as leverage against the government, as leaders want to avoid the economics pains of a failure at all costs, and banks abuse this relationship to take abnormal risks.
Best,
Slaiman Atayee
James Madison University Class of 2015
Finance