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The art of banking is always to balance the risk of a run with the reward of a profit. The tantalizing factor in the equation is that riskier borrowers pay higher interest rates. Ultimate safety - a strongbox full of currency - would avail the banker nothing. Maximum risk - a portfolio of loans to prospective bankrupts at usurious interest rates - would invite disaster. A good banker safely and profitably treads the middle ground.

James Grant
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James Grant's Popular Quotes

Hope sustains life, but misplaced hope prolongs recessions.

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The 1980s are to debt what the 1960s were to sex. The 1960s left a hangover. So will the 1980s.

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