GFMorris.com » risk http://gfmorris.com The Life and Times of Geof F. Morris Fri, 19 Mar 2010 02:30:05 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 2009 gfmorris@gfmorris.net (Geof F. Morris) gfmorris@gfmorris.net (Geof F. Morris) posts 1440 Music I Love Geof F. Morris Geof F. Morris gfmorris@gfmorris.net No yes http://gfmorris.com/wordpress/wp-content/plugins/podpress/images/powered_by_podpress.jpg GFMorris.com http://gfmorris.com 144 144 Risk Spreading http://gfmorris.com/2008/09/15/risk-spreading/ http://gfmorris.com/2008/09/15/risk-spreading/#comments Mon, 15 Sep 2008 22:30:45 +0000 Geof F. Morris http://gfmorris.com/?p=5017 So, if the end goal of Wall Street is to spread risk around—to avoid the “too big to fail” problem that just means socialized capitalism—then why is it a positive thing for bank failures or near failures to inspire M&A activity? Doesn’t more M&A activity mean fewer players, higher barriers to entry, and, worst of all, concentration of risk in fewer areas?

To quote John quoting Friedrich Hayek: “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.”

[Perhaps I am biased by being in an industry with very few players.]

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