Moral hazzard:

· Save the system, f* the bankers

· Save the bankers, f* the system

Bailout was about the 2nd, by a persuation of Dimon to Bernkanke.

You have to be clear that when you build and use a model, you are using a platonic shadow of reality.

Pretty much like the Simpsons chart in this blog.

Kahneman´s book has been very popular (thinking fast and slow), very smart people I have noticed are or have been reading it.

A banker is someone willing to lend you a umbrella un a sunny day, but when it is raining, you are too risky and do not qualify.

Pd.

This was an interview to Barry Ritholtz.