Banking (and Insurance) Should Be Boring

Man Behind Desk:  “Mr. Brain, As you know, we here at Fiero & Company are re-re-insurers.    We provide insurance to re-insurers, who insure insurance companies.”
Brain:  “Is that lucrative?”
Man:  “Take a look.” (opens drawer)
Brain:  (big eyed smile) “Ahem!”
– Pinky and the Brain, S1E2, “Of Mice and Man

One of the basic principles of Barataria is that “Banking should be boring”.  The main argument against financial regulation is that it stifles innovation.  Yet that hallmark of the 2000s has been the source of excessive risk and nearly all the trouble we find ourselves in today.  When banking is boring, the world is quiet and stable and those of us not in financial dealings have a decent chance of actually getting ahead.

The same is true of insurance.  That’s not only true as a matter of policy, it’s apparently true as a matter of making a lot of dough.

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