Risk is the
coal in the various locomotives of the economy, whether local,
national, or global. Risk is being assumed, traded, diversified out of,
avoided, insured against. It gives rise to visions and hopes and it is
the most efficient "economic natural selection" mechanism. To be a
market participant one must assume risk, it in an inseparable part of
economic activity. Without it the wheels of commerce and finance,
investments and technological innovation will immediately grind to a
halt. But many operators are so risk averse that, in effect, they
increase the inefficiency of the market in order to avoid it. They act
as though they are resolute, risk assuming operators. They make all the
right moves, utter all the right sentences and emit the perfect noises.
But when push comes to shove - they recoil, retreat, defeated before
staging a fight. Thus, they waste the collective resources of all that
the operators that they get involved with. They are known to endlessly
review projects, often change their minds, act in fits and starts, have
the wrong priorities (for an efficient economic functioning, that is),
behave in a self defeating manner, be horrified by any hint of risk,
saddled and surrounded by every conceivable consultant, glutted by
information.
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