Inter-capitalist competition prevents finance from reading risk signals perfectly.

Evidence

But it is also important to note that capital also usually reads the signs incorrectly, or individual investors, driven less by cool-headed rationale and more by a frantic, short-sighted desire to beat the market, may misread or wilfully ignore these signals (Marazzi 2008, 129–131). Indeed, partly because of the elemental and continuing fact that capital is built on inter-capitalist competition, it is far from a perfect machine. — Max Haiven, Cultures of Financialization, 543

Categorization

• XREF: connects to: Securitization made bankers believe dispersion minimized risk — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 181

Broader Connections

• Securitization made bankers believe dispersion minimized risk #corroborates (0.80) — Yanis Varoufakis, Technofeudalism, 181