This is from John Kay's comment in today's FT, looking back on the Lloyds collapse:
"Lloyd's was, I came to realise, a microcosm of what was happening in other financial markets. If trading was motivated not by differences in attitudes and preferences but by differences in information and understanding, risk would gravitate not to those best able to bear it but to those least able to comprehend it."
One to remember next time you hear someone talk excitedly about how financial markets parcel out risk.
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