Earlier quoted context omitted.
Also there’s a bit of a tragedy of the commons. If one entity is scrupulous that doesn’t mean another will. Obviously if they had any morals they’d see the bright line.
I wonder how incentives could be better aligned. Had an interesting case study where a coworker liked to gamble - he was fairly responsible, kept to his budget and treated it like an expensive hobby he enjoyed- but at the same time, he had someone else handle his retirement investments, which is an unpredictable payoff market where you come out ahead on average. I asked a couple times why he didn't replace gambling w…
There's a simple answer, which is that gambling is fun, and investing is not fun (my guess.) Your coworker is a pleasure seeker, like everyone is to some degree.