tag:blogger.com,1999:blog-28078378.post4085386240370293511..comments2023-10-30T11:00:05.243+00:00Comments on Bacon Butty: Heads you win, tails I lose - the City explainedUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-28078378.post-60746033586374729602007-11-27T00:35:00.000+00:002007-11-27T00:35:00.000+00:00here's a comedic viewhttp://www.goldmau.com/conten...here's a comedic view<BR/><BR/>http://www.goldmau.com/content/articles/2007-11-23/comic.phpPeter Kinghttps://www.blogger.com/profile/08459070252797881222noreply@blogger.comtag:blogger.com,1999:blog-28078378.post-50077207671043205202007-11-14T12:23:00.000+00:002007-11-14T12:23:00.000+00:00Yes - risk sharing is fundamental here... but ris...Yes - risk sharing is fundamental here... but risk and its allocation have slippery qualities. Someone might appear to be bearing risks, but what happens if they default and head for the exit? <BR/><BR/>All contracts or investments involve a degree of risk-sharing - it is the balance and transparency that matters. It used to be said that risk should be transferred to those best able to manage it, but now we see it being transferred to those least able to understand it. <BR/><BR/>Much of the recent problems have arise from failures to understand risk or to price it properly. I argue that this is an inherent weakness - market players don't want to or need to price it properly because they get out (ie. they shed the risk on to institutions) when things go sour.Clive Bateshttps://www.blogger.com/profile/15614056019814665135noreply@blogger.comtag:blogger.com,1999:blog-28078378.post-4320795565779171332007-11-11T16:23:00.000+00:002007-11-11T16:23:00.000+00:00Hi Clive,Hope preparations for Sudan are going wel...Hi Clive,<BR/><BR/>Hope preparations for Sudan are going well.<BR/><BR/>One of the Today programme's Thought for the Day speakers last week mentioned the Islamic disdain for usury. I had a quick Wiki look at what the Islamic banking system is based on and there is mention in there of both lender and borrower sharing in the rewards <B>and the risks</B> of investments. Might this be the way for Western capitalism to go?<BR/><BR/>MattAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-28078378.post-52840568888581516382007-11-05T09:07:00.000+00:002007-11-05T09:07:00.000+00:00Some interesting parallels with development banks ...Some interesting parallels with development banks here.. individuals are incentivised to get loans signed off, with no apparently personal downside if environmental (or other) safeguards arent applied properly. By the time it becomes apparent that the project is a stinker the person in question has moved up a level and are immune.Anonymousnoreply@blogger.com