Tuesday, June 24, 2008

Socializing Risk

You have to ask yourself a pertinent question:

Which countries are richer - those with a long corporate history or those with short or none?

Corporations are how we socialize economic risk. The fact that there are winners and losers keeps the game honest.

The problem with other ways of socializing economic risk are that non-performers get carried on the books instead of being liquidated.

1 comment:

USpace said...

Well put!

absurd thought -
God of the Universe says
don't allow FREE markets

culling inefficiencies
keeping the markets robust

Philosophy of Liberty Cartoon