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<p>[QUOTE="fatima, post: 1282945, member: 22143"]How does one judge risk when we have a government that will not allow companies to fail and a stock market inflated by cheap (as in essentially free) debt. The Nortel example I gave earlier is a prime example. The Canadian government bailed that company out numerous times yet they went down anyway. If these bailouts had not happened the management would not have been as free to take on the risk they did. To the outsider there is no way to judge what was going on.[/QUOTE]</p><p><br /></p>
[QUOTE="fatima, post: 1282945, member: 22143"]How does one judge risk when we have a government that will not allow companies to fail and a stock market inflated by cheap (as in essentially free) debt. The Nortel example I gave earlier is a prime example. The Canadian government bailed that company out numerous times yet they went down anyway. If these bailouts had not happened the management would not have been as free to take on the risk they did. To the outsider there is no way to judge what was going on.[/QUOTE]
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