Comments on: Bernanke’s children ignite loan party http://blogs.reuters.com/james-saft/2011/03/01/bernankes-children-ignite-loan-party/ Tue, 24 Mar 2015 16:54:45 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Ralphooo http://blogs.reuters.com/james-saft/2011/03/01/bernankes-children-ignite-loan-party/comment-page-1/#comment-528 Wed, 02 Mar 2011 16:38:37 +0000 http://blogs.reuters.com/jim-saft/?p=336#comment-528 “The second less reassuring take is that the loan market reflects what happens when monetary and government policy bails out risk takers.”

A mathematically perfect winning strategy for roulette is to leave your chips on red and double your bet at every turn of the wheel. Eventually you will win a turn, canceling out any prior accumulated losses. One more win and you are deep into the black.

The catch, of course, is that you need an unlimited bankroll to make the strategy work. Any real-world player attempting to try this out will eventually go bust.

Certain players in our particular real world have learned that the Federal Reserve will provide the necessary backup. Under that cozy arrangement, such players cannot lose. Woe to the gambling house!

But take a closer look. Those insulated participants are playing, not against some abstract casino, but against the rest of the U.S. (and the world) economy.

The good news about this unusual bargain with fate is an eerie, eye of the hurricane sort of stability — and an increasingly asymmetric society.

The bad news, as usual, is the same as the good news.

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