Risk a Catastrophe?

"Oh, it will never happen!"

They all say that, about the possibility of one as a consequence of what they do--they being all of us. Whether it's a cat hunting mice and braving the threat of coyotes--they eat cats--or JP Morgan buying derivatives of uncertain value, or BP drilling offshore, or MAL Zrt, the Hungarian Aluminum Production and Trade Company, stockpiling the sludge byproduct from producing aluminum from bauxite.

In each case, after many times when disaster did not strike, after many times when disaster was possible, but did not happen, after many times when "experts" said it couldn't happen, it struck and struck hard, in the last two cases with huge environmental damage.

When will we learn?

There is a difference between the chances for profit and the chances for disaster. Some call this asymmetrical risk. You can risk profit, and if you lose, you lose your money; if you win, you gain money. But there are other risks, like those environmental disasters. The costs are borne by a much larger number than capital investors. In the case of the Hungarian sludge disaster, which just happened, not only did people die--of alkaline burns--whole areas of Hungary will have to be dug up, the soil replaced, towns have been abandoned, and in rivers like the Raba, most of the life in them may have been killed. The sludge may reach the Danube, which flows through other countries.

Who pays for all that? The offending corporation should, their investors impoverished if necessary, but you know that won't happen. BP has been assessed damages for its Gulf oil disaster, and for its earlier refinery disaster, as well--peanuts compared to its profits--but it isn't paying the cost of restoring the Gulf to its pre-blowout condition. It won't be. So, everybody else is: the fishermen whose livelihoods have been lost, for example, the hotel owners and workers, whose businesses have been destroyed, and so on.

In most capitalist enterprise, in fact, there are huge asymmetrical risks, some of which we are only beginning to be aware, like the possible links between earthquakes and mining or deep drilling--huge spaces are evacuated underground, in both cases: there could be consequences. Again: who pays?

Our market system is engaged in the most asymmetrical risk of all: profit in the short run for the risk in the long run of a climate so destabilized that most of the human population won't survive.

Who pays?

At least, when the Roman Empire fell in the west, the whole planet was not affected: only Western Europe and western North Africa. When our industrial system poisons itself, the whole planet will suffer; it already is.

But the climate change deniers, beloved of "conservatives" and the tea party, and funded by corporations, want us to take on that risk--so that Exxon, Peabody Energy and General Electric can earn even greater profits than they do right now.

Are humans rational?