Socialized Risk

Risk and reward management are the heart of any investment.  Money goes into ideas and efforts that have a chance of paying it back with a little bit of profit at the end.  If risk is completely removed anyone will make decisions and try things that they might not have otherwise.  When the risk is spread out to people that they don’t know or necessarily care about, disaster is pending.

That’s pretty much what just happened to our economy – socialized risk with private profit.

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