The Great Game Will Never End: Why the Global Financial Crisis Is Bound to Be Repeated

نویسندگان

چکیده

This article re-examines key explanations of the Global Financial Crisis—product complexity, behavioural biases in decision making, systemic risk, and regulatory arbitrage capture—and finds a common underlying cause, namely gaming by personnel at all levels banking sector its regulators. has enabled banks to use highly leveraged, maturity-mismatched investment strategies, which were designed so that retained upside rewards, but transferred downside risks taxpayers, leading privatization profits socialization losses—behaviour been described as ‘banksterism’. Although governments have introduced some significant mitigatory measures, they will not be effective preventing future financial crises, because do and, indeed, cannot provide appropriate incentives end Great Game between bankers would involve making bankers, rather than personally liable for losses.

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ژورنال

عنوان ژورنال: Journal of risk and financial management

سال: 2022

ISSN: ['1911-8074', '1911-8066']

DOI: https://doi.org/10.3390/jrfm15060245