Forum Post: Risk Management
Posted 10 years ago on Aug. 5, 2013, 3:55 p.m. EST by windyacres
(1197)
This content is user submitted and not an official statement
Bankers and all professionals in the financial industry must consistently assess their risk. They can make speculative investments that earn a high rate of return, but there's always the fear of the investment losing money. They can choose to invest safely, but the returns are small. Normally, they decide on some strategy that includes both.
Is it possible to eliminate risk? That would let people sleep well at night knowing there was no way their investment would lose money and allow them to, "speculate," heavily on the markets. If risk is eliminated, it's not speculation, there's no concerns, there's only money to be made. Every individual would like this situation for themselves, but it's not fair because it can't be the same for everyone, (at least not with free market capitalism).
The manipulation of markets is almost certainly happening, we are finally learning how it works. With the manipulation of markets comes power to control the world and this is the primary reason that suffering among mankind is not diminishing.
All People Are Equal...is a concept all of mankind should agree is necessary. Establish Justice!
Does justice require understanding?
Yes, but justice can be understood as a small child. Children understand that unless the world is fair, they themselves could experience the unfairness. They accept it as every human should.
Agreed. What about understanding and free speech?
After Justice is established, everyone agrees to understand the rules, (fairness). Free speech is most useful when the words are the truth, which often lead to more understanding.
So you propose justice is automatic, or forced? If forced, how?
I propose it's automatic if people understand and democracy is present. People need free speech to understand.
Yes there is a way to eliminate financial risk. It is called a Bank. (Let us not confuse banking where one deposits money for it to be loaned out to reputable entrepreneurs all at fixed rates, from the wheeling and dealing finance industry which has been replacing true banking. Unfortunately, much finance business is called banking. )
Only problem is the gross and perverted mishandling of our money supply has been driving interest rates down so low no-one can get an honest return on money put into a bank.
Isn't that what this is all about?
http://www.alternet.org/economy/detroit-and-pensions
"Legacy" risk?
I read that article yesterday, it's very disturbing. Austerity isn't enough and the "bail in" concept has already been used in Cyprus. TPTB are not afraid to try anything because they're immune from any prosecution. Why would the American people want Congress to allow Derivatives to have "super priority" in bankruptcy? Derivatives have super priority because of lobbying.
It absolutely appears that "Legacy", risk elimination is currently being applied.
http://occupywallstreet.net/story/detroits-collapse-reveals-awful-dystopia-united-states-becoming
Welcome to the neotyranny currently being practiced in Michigan.
See the Koch's petcoke for yourself.
http://www.democraticunderground.com/1017136987
The Koch's should fear prison time for the petcoke, that's horrible. They don't though because the laws give them immunity, they only have to worry about possibly being fined.
The first link reminded me of Hedges description of, "sacrifice zones", Detroit fits that description.
Their greatest fear, in fact for all of the 1%, is loss of assets.
Fines need to be large enough to affect their behavior.
I have advocated a complete socialization of those assets for proven criminal activity.
I agree with socialization of their assets if the amount is enough. Currently, banksters and others are paying fines that seem to be heavy, but they're not heavy at all compared to their ill gotten gains. Just a cost of doing business.
I think the fear of prison should be present as well. That would affect their behavior.
Today there is a primary for mayor in Detroit.
http://www.freep.com/article/20130806/NEWS01/308060082/Voting-confusion-Detroit-election
Voter purging, any way they think they can get away with.