It was the risk model, an inherent flaw discovered after the fact but in time enough to pass the bag onto others. This is the big one’ says one chieftan, ‘just the start, most of us won’t make it past next week. This will destroy the firm. But what other choice was there? Pass the bag and you’re putting other people out of business (might save our asses though)”. And so they did just what they what they had to do. The incentives far outweighed the repercussions and there was no risk of anyone going to jail. Seven figure rewards for finding bagholders, even if they’re your friend. “I don’t care if its you mother so long as she’s a buyer!”
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