26 March 2009

One of the basic tenets of investing is associated with risk.  High risk: high potential reward, but also high chance of loss.  Thats' what risk is.  It is now interesting that there is so much concern over regulating derivative investments, which are high risk by definition - probably because they are not highly regulated.  So?  DON"T BUY DERIVATIVES.  That's called responsibility; but of course responsibility begins to flag when greed weighs in.

We are pushing the same with our children, who also are (generalization) not being taught responsibility, but entitlement.  Perhaps (  ) that's where it all started?  How about buying houses at astronomical prices assuming that their prices will continue to rise so they can be sold at a big profit?  With interest only payments.  Gambling is basically responsibility free.  Investments used to be a sign of confidence in the engines of America's economy; now they are more gamble than investment - responsibility free.  Who needs responsibility?

But the clincher came in November 2008: we now have a government that has virtually decreed that there will be no more responsibility).  Our congress legislates against it, for crying out loud - and they lead by example.  We have reached the holy grail: NO MORE RESPONSIBILITY.  Oh, with one exception; it is grounds for placing blame when things go bad.  That is, we are not responsible for what we do, unless there is need to find someone to blame for what has been done. 

We are breaking new ground in social progress.  Isn't it exciting?