> Think about what happens when's there's a rush on a bank. A bunch of people acting stupidly in large numbers can create a negative environment for everyone else.
that's not people acting stupidly - a bank run happens when trust in the banking system drops to below a critical threshold. This trust might be eroded by some external event, and mishandling by the governing authority etc.
it is rational then, as an individual who cannot change the authority's handling, to take action to protect one's own interest.
> Yes they are free to do that. It causes problems when there's a disconnect between value and price. Many of the activities were trading or gambling, which are not beneficial.
they are beneficial from the point of view of the person doing it.
It isn't the activity that causes the problem - it's that those activity is funded by taxpayer money, not their own!
Something can be rational and unreasonable at the same time. It seems you answered your own question from your previous comment - it creates a problem for others based on them acting on their own self interest.
"they are beneficial from the point of view of the person doing it."
Just because it's beneficial for one person doesn't mean it can't be a problem for others.
"It isn't the activity that causes the problem - it's that those activity is funded by taxpayer money, not their own!"
Even if it were their own money, it would still cause problems. Although it's questionable if they would have participated in that behavior without the extra money.
that's not people acting stupidly - a bank run happens when trust in the banking system drops to below a critical threshold. This trust might be eroded by some external event, and mishandling by the governing authority etc.
it is rational then, as an individual who cannot change the authority's handling, to take action to protect one's own interest.
> Yes they are free to do that. It causes problems when there's a disconnect between value and price. Many of the activities were trading or gambling, which are not beneficial.
they are beneficial from the point of view of the person doing it.
It isn't the activity that causes the problem - it's that those activity is funded by taxpayer money, not their own!