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Matthew Yglesias comments on the absurdity of John Meriwether blowing up, yet again. He includes this parable:

Imagine I find a kind of gambling machine somewhere that works kinda sorta like an enormous roulette wheel. It has 100,000 possible outcomes, and on 99,999 of those outcomes it pays off at a 1:1 ratio. But on the 100,000th outcome, you lose at a 1:300,000 ratio. Obviously, placing a bet on that machine would be foolish.

Not to me.

I’d lay down $1,000, let it roll for 20 spins and walk away a billionaire.

Addendum: Or there’s a very remote chance that I’d go in the roulette business. I'd be cool with either outcome.

Posted by edelfenbein at March 20, 2008 7:47 AM