If you are going to go broke in a big way, take risks; this is the time to play the lottery, you probably won’t win, but you might and by this point you have nothing to lose.
That strategy successfully killed a number of large banks, Barings being a classic example.
It may very well have been game-theoretic rational for the individual rogue trader to just keep gambling once things got sufficiently bad, although his co-workers would certainly have wanted him to stop long before then.
That strategy successfully killed a number of large banks, Barings being a classic example.
It may very well have been game-theoretic rational for the individual rogue trader to just keep gambling once things got sufficiently bad, although his co-workers would certainly have wanted him to stop long before then.