Well the closest thing in this scenario is that breaking up investment banks from the commercial ones is so they wont have insane funds to be able to gamble for while also limiting the impact it will have on the industry if they fail.
deletedover 8 years
i thought it was spelled laissez
edit: maybe that's the joke
deletedover 8 years
also if the industry youre attempting to "diversify" is an industry that consists of money moving from one place to another, all the banks will assume mostly the same risks, (like sub prime mortgages), which raises the correlation within said industry.
deletedover 8 years
if Hillary becomes president im moving to canada
deletedover 8 years
"The greatest problem with this country is a combination of entitlement and a fundamental misunderstanding of the benefits of free market lais a faire capitalism" Germatron sighs before taking a drive through order on his headset
Did your mother drop you at birth or something or were you born this stupid? You do realize that implying that the "customers" had anything to do with why the banks failed is just plain wrong?
"The simplest example of diversification is provided by the proverb "Don't put all your eggs in one basket". Dropping the basket will break all the eggs. Placing each egg in a different basket is more diversified. There is more risk of losing one egg, but less risk of losing all of them. On the other hand, having a lot of baskets both increases costs and the chances you will drop one. Some people prefer to reduce risk by taking more care of the basket.
In finance, an example of an undiversified portfolio is to hold only one stock. This is risky; it is not unusual for a single stock to go down 50% in one year. It is less common for a portfolio of 20 stocks to go down that much, especially if they are selected at random. If the stocks are selected from a variety of industries, company sizes and types it is still less likely."
here you go germatron, straight up copypasted from wikipedia
"This country is effed because no one understands diversification..." Germatron mutters to himself as he folds my beefy 5 layer
deletedover 8 years
"unicorns exist and are real"
"lol wut"
"SEE? YOU CAN'T REFUTE"
deletedover 8 years
guys, nike is too big to fail.
I know, let's break it up into two seperate shoe companies!
GOOD IDEA! now if everyone suddenly stops buying shoes, only one of them will fail...and the other one will turn into a starbucks or something, DIVERSITY
deletedover 8 years
Seriously, where did you learn about economics? Was it literally during burrito folding training at Taco Bell? Perhaps from previous generations of your family, in between lessons on the heroics of Robert E Lee?
deletedover 8 years
edark, if you cant articulate your argument...maybe that's because it doesnt exist?
