Thursday, March 4, 2010

Nationalization of Indian Banks and the Financial Crisis

To make this clear, consider the example of drunk-driving. Almost everyone agrees that it is a bad decision to drive drunk. If I am to drive drunk, and get into an accident, that would be a case of "bad decision-bad outcome." If I am to drive drunk, and still get home safe, that would be a case of "bad decision-good outcome." If I am to drive sober, and get home safe, that is a case of "good decision-good outcome." And it could be that if I drive sober, I might still get into an accident. That is an example of a "good decision-bad outcome."

No comments: