“Sure, I’d Make That Bet”

1. Why did these banks pay such large bonuses in 2008
2. What grade would you give the decision to award these bonuses?
3. Finally, how might the prospect of such large bonuses affect the behavior of employees? In theory, people have an incentive to perform well if they make more money when their contribution to their bank’s profits is greater. But what happens to the employees when the bank loses money or collapses? If the banks still pay bonuses, and employees know losses will be borne by investors and taxpayers, will they take on too much risk?

Banks pay large bonuses in 2008  because they would loan rich people money and they would go to bankruptcy. I would give these bonuses a low grade because it is taking money from our tax and the money payed of tax are people like my parents. This is wrong because thing that should be invested in education is invest instead in  in paying so rich people can have humongous loans. Large bonuses can destroy our life in several ways like getting a house later in the future but being charge a lot and then I might not be able to pay it and being charged the triple A fine after when I should not be charged this high. Like the video showed college being the problem to make up the career of our dreams.