Oddbean new post about login | logout @5b6411ac @d72d5211 I’d argue that herd sizes are one step removed. When the bank manager pushed a farm consultant at the farmer they’re obliged to listen and that advice often includes, “more cows, buy in feed, more lending from the bank”. Banks need to take the blame here, not grinding up the farmers who are stuck in the middle.
@f6ddecc9 in part yes, and I'll never defend the moral superiority of banks... ugh. But every investment is dependent on the investor and their due diligence. A lot of farmers have made very foolish investments (not unlike the poor sods who build/buy houses in flood plains). Sadly, sometimes investments fail. It's bad luck for sure, and I won't celebrate their misfortune, but I won't be keen on bailing them out, either. @5b6411ac