(Before It's News)
But, unless there is fraud, each one of those bets at the Atlantic City casino, has exactly the same expected pay out; namely a slight negative value because of the houses wins, like that when a zero comes up on the roulette. The cost of entertainment.
But out there in the other world, in the Main-Street, regulators have told banks that if they play it safe, like on black or read, like on sovereigns, AAA rated, or financing residential houses, they will earn much higher (expected) returns on equity, than if they bet on risky SMEs or entrepreneurs.
, if Gillian Tett is concerned about the future of her children and grandchildren, should depress her much more.
Sir, I assure you that what the Basel Committee has done to the grey haired future of my children and grand children, leaves me with a much more sour taste than thousands of Atlantic City casinos.