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> regulatory boom and bust

The root cause is pretty easy to describe: benefits are apparent and risks are hidden.

It's much harder for people to weigh things that might happen against things that will happen. Especially when the former is negative and latter is positive (positive outcome bias).

Consequently, in meeting after meeting, risk safeguards are erroded. Because each meeting has a relatively minor "Do we want this benefit, or to hedge this risk?" decision, and in aggregate, people pick the former.




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