Banks prioritized profits over principles from "summary" of The Big Short by Michael Lewis
It's a common tale as old as time itself - the pursuit of profit at the expense of principles. In the world of finance, this concept couldn't be more prevalent, as illustrated in 'The Big Short'. Banks, the very institutions entrusted with managing our hard-earned money, have a long history of putting profits above all else. As the financial crisis of 2008 loomed large, the true colors of these banks were revealed in all their glory - or lack thereof. Rather than acting in the best interest of their clients, these institutions were more concerned with padding their bottom lines. Mortgage-backed securities, once deemed safe investments, were now ticking time bombs waiting to explode. Despite the warning signs flashing brightly in front of them, banks chose to turn a blind eye in favor of raking in massive profits. The very principles that should have guided...
Similar Posts
Ratings agencies failed to properly assess risk
The rating agencies were supposed to assess risk. They were supposed to decide how risky bonds were. They failed spectacularly....
Behavioral finance studies human behavior
Behavioral finance is a field of study that focuses on how human behavior impacts financial decision-making. This concept recog...
Focus on shortterm gains harms long-term progress
In the rush for immediate profits, businesses often neglect the long-term consequences of their actions. By prioritizing short-...
Wall Street believed in the stability of the housing market
Wall Street's faith in the housing market's stability was unwavering. The belief that housing prices could only go up was deepl...
The staggering amount of wealth lost
The staggering amount of wealth lost during the financial crisis of 2008 is almost incomprehensible. Trillions of dollars disap...
Panic and fear in the markets
The markets were in a state of chaos. Investors were gripped by an overwhelming sense of panic, causing them to make irrational...
Fraudulent practices ran rampant in the financial sector
The financial sector was a playground for deception and trickery. Those who were supposed to be the gatekeepers of financial st...
Transparency and accountability are essential for a stable financial system
When information flows freely and actions are readily explained, trust forms the foundation of any financial system. Transparen...
Groupthink mentality leads to risky behavior
The collective mindset of a group can often lead to reckless decision-making. When individuals are surrounded by like-minded pe...