A friend sent this photo of a newspaper cutting and added a hope that may this insurance cover be implemented quickly.
This cover reminds me of the neologism, 'intaxication'. This new word refers to your sense of high when you get a refund from tax authorities, till it sinks into you that the money was yours in the first place.
In this insurance cover proposal, you are being asked to pay a premium on the money that is yours in the first place. So essentially you are rewarding the bank with a premium amount for the bank's own delinquency. It is the bank which should be covering itself with an insurance so that it is able to pay out its customers in the case where it goes kaput.
Do you find the title of this post curious? I do too. The post twice mentions, 'moral hazard'. What is 'moral hazard'? Can morality ever be a hazard? It sounds like how some folks call lying as 'misspoke'.
1 comment:
Ashish, you hit the nail on the head...that's what I thought when I read this piece, though i couldn't have put it more aptly.
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