analogical
Well-known member
That's such a sad thing to say! I would rather you take my money if there is something you can offer on your deathbed that might improve our future... some imparted wisdom or advice.
That's just human nature, to capitalize. In the case of mortgaged-backed securities, leveraging profit was just business as usual. You could argue that a 1000lb bridge with 2499lb tolerances was merely an undervalued 2300lb bridge or something.
The problem with the 'bubble' and all future bubbles is not the tendency to leverage profits, it's that unforeseen "x" factor, that other, metavariable that arises as a result of pushing or switching known variables beyond their tolerances or intended use in new creative ways. And yet to remove risk entirely is to remove the drive to invest in the first place? Remove the risk of the bridge failing and you lose your investors. I like to think that for every good song with a long view, there was a thousand bad songs it had to stand on to see anything. How disparate the Engineer's exacting design and the money managers' crazy, roiling pot of schemes! They are incomparable in most cases, and yet both are trying to create some grand value out of smaller things that in themselves have little value at all.
