by Keith Weiner
There is sometimes a tendency to confuse ends and means. For example, in traveling through an airport there is extensive inspection of passengers. Before you are allowed to board an airplane, you must go through a process that is intrusive and increasingly invasive. This is deemed to be security. How do we know it makes us secure?
Because it is annoying.
See the switcheroo? The degree of disruption of your schedule and possessions bears only a faint relationship to the degree of safety.
So it is with many other regulated areas. Banking is no exception. It’s worse, actually, as the governments and their central banks offer trillions of perverse incentives for banks to act in ways that are most unsafe.