Hedged.Biz

  • Disclaimer
  • About Us
  • Articles
  • Home
  • Articles
  • Responsible Financial Behavior Punished. Rich Bounce Back as Poor Stagnate.
May 9, 2025

Responsible Financial Behavior Punished. Rich Bounce Back as Poor Stagnate.

Responsible Financial Behavior Punished. Rich Bounce Back as Poor Stagnate.

by Burnham Banks / Monday, 22 June 2015 | 7:15 am / Published in Articles
image_pdfimage_print

If you were careful, responsible and diligent and didn’t overextend yourself buying that big apartment in the prime central area and the second apartment to rent out, but maintained a reasonable debt to income and debt to equity ratio, you did OK but you certainly didn’t do as well as the guy who bought bigger than he could afford, was less than candid on his loan application for his buy-to-let in prime central, levered himself to his eyeballs and got bailed out when central banks the world over cut rates and did whatever they possibly could to ensure that a free market selection process for weeding out imprudent risk takers was confounded and conservative and responsible investors were disadvantaged.

The interventions and bailouts were entirely unfair. The bailouts were sold to us by the governments that the investment banks had the world over a barrel and that Wall Street had Main Street as hostages and human shields.

And now we are told (in a Bloomberg article Jun 18, 2015) that As the Rich Bounce Back, the Middle Class Stays Stagnant.

When income and wealth inequality are moderate, there is less motivation to challenge the status quo. However, at some level of inequality, when the bottom half of the population by wealth ask themselves what the probability is that they and their children might progress to the top half through diligence and effort, and the answer is pretty low, then change may come.

 

 

 

Ten Seconds Into The Future

“Hello. I’m Burnham Banks and I studied economics in the late 80s and early 90s. I’m still studying economics today and am still no wiser. This blog is a journal, a record of my thoughts and experiences. If we are destined to repeat our mistakes, we should at least repeat them faithfully. If not, then perhaps the past is a mischievous guide and we should try something new.”

Meta

  • Entries RSS

Featured Posts

  • Long short, hedging and market neutrality under unruly markets

  • Ten Seconds Never Felt So Long. 2025 Trade War.

  • Tariff Wars. The Best Response to Tariffs is to Cut One’s Own.

  • 2025 Geo Macro Scenario A

  • Fiction. Foundation CG. 2025 02

  • Thoughts from the Bar Stool. 2025 02

  • Trump. Vichy. Lebensraum.

  • FICTION. Ten Seconds Into The Future 2025

  • A Few Thoughts about AI

  • Ten Seconds into 2025. This is Thin…

  • Efficiency X Robustness and Other Tradeoffs

  • The Longevity Imperative

  • China Reflation Policy 2024

  • Three Big Themes, Investable or Not.

  • Fiction. Free Energy. Expropriation risk. Governance.

  • Fiction?: Matter and Interactions.

  • Blended Finance 1.0.1

  • Ten Second Into The Future 2024

  • Blended Finance 1.1

  • Environmental and Social Imperatives

  • Environment and Social Impact. Public Goods. Private Capital?

  • FICTION. Males are Alien Viruses. XY and XX.

  • Impact Investing 0.5

  • Ten Seconds Into The Future. 2023 Outlook.

  • The Fool.

Categories

  • Articles

Archives

  • RSS FEED

Copyright 2018 © Hedged.Biz All rights reserved

TOP