Imagine an opportunity where you can make a billion dollar bet on a coin flip using other people’s money. If your bet lands on Heads, you earn billions for your firm and you personally get to take home $130 million bonus (never have to work again). If heaven forbid, the coin lands on Tails, all you lose is your job. You don’t go to jail. Nothing else happens to you. Taxpayers bail out your firm.
Any idiot can get lucky for a year or two betting on coin flips (will gas prices go up or down, etc). But it’s f’d up when the profits are privatized and the losses are socialized.
How many people would do what this punk did? All you need is one lucky coin flip and you pay yourself a big enough bonus from that year’s proceeds that you never have to work again. If you lose the 50-50 bet, oh well. 50-50 odds for winning the lottery are pretty good.
This is exactly why financial markets need to be regulated, so as to protect the people who actually work for a living and don’t deserve to have their savings wiped out by these Wall St “rainmakers” and their risky bets.
Story is located here