Risk 2010 : America’s Great Idea

Risk has taken a beating recently, thanks to the financial crisis. Risk is supposed to be about choice and consequence. You take a chance and you win or you lose. But then banks and insurance companies found ways to pervert this. They devised ever more esoteric ways toApass risk on to others, so there was, in fact, no risk to them at all. In this distortion, insurance techniques, created to limit risk, exposed millions to it. The laws of probability, originally devised to solve a moral dilemmaahow to equitably distribute winnings in a game of chanceawound up inequitably distributing losses to people who didn’t even know they were at the table. The architects of these gamblesAleft their jobs with enormous bonuses, and companies that helpedAcripple the financial system wereArepaid by the government bailout. They took a chance, and lostabut they still won.

Part of a six part series at at the Department Index @ Slate

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Posted: April 19th, 2010
at 7:22pm by Koookiecrumbles


Categories: life,business,weaponry,et cetera,development,philosophy

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