ST Alpha - "I think you're too focussed on proximate cause and not looking enough at the system as a whole." (Reading a Post)

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I think you're too focussed on proximate cause and not looking enough at the system as a whole.

Posted by Roger More (aka RogerMore) Oct 23 '08, 10:30

And I don't think you can say that one type of investor that indulges in one unsustainable activity (lending money to someone without checking whether they can pay back the debt) is the cause of all the problems, while another investor who indulges in a similar unsustainable activity (borrowing more money than he can afford to buy an asset he thinks will increase in value) is completely blameless.

Both parties are doing the same thing and should bear responsibility. And you're not even mentioning the regulatory system - whose job it is to basically keep the market long-term sustainable. Which they didn't do.

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- If you just look at the proximate cause, all you'll get is a band-aid solution - Roger More Oct 23, 10:47

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I think you're too focussed on proximate cause and not looking enough at the system as a whole.

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