Abstraction and Judgment
Richard reflects on the belief in pricing complex derivatives and the subsequent de-emphasis of judgment in large financial institutions. He challenges the notion that securitization was solely responsible for the financial crisis, highlighting the poor performance of mortgages kept by banks. The conversation also explores the potential impact of the "bailout mentality" on behavior and the government's financial gain from the bailout.In this clip
From this podcast
EconTalk
Richard Robb on Willful
Related Questions