May 11, 2012

All Hail Harsanyi!

JPMorgan Chase lost $2 billion due to some reckless trading of synthetic credit securities. Chief executive Jamie Dimon blamed "errors, sloppiness and bad judgment." JPMorgan Chase earned $19 billion last year so this won't sink them. And, as one might expect, many folks immediately blamed the lack of regulation for the loss -- because, apparently, some people believe the market should be risk free. And actual, isn't this a great argument not to layer the industry with more regulatory burden? (Unless, of course, there was something illegal going on.) Sloppiness and bad judgment should cost you money.

Rhetorical question: Wouldn't it be nice if everyone got similarly worked up when government wastes billions on sloppiness and bad judgment? -- David Harsanyi

Quote of the Day Posted by John Kranz at May 11, 2012 11:00 AM

When government spends billions of you and your neighbors' dollars through sloppiness and bad judgement it isn't called waste, it's called "stimulus."

Posted by: johngalt at May 11, 2012 1:49 PM

Except when it is a measly two billion. Then it is called "a rounding error."

Posted by: jk at May 11, 2012 1:58 PM | What do you think? [2]