Saturday, April 6, 2013
No risk, no fun
The title is right because you see millions of people involved in risky behavior every day sometime without knowing it. You take so many things for granted that if something goes against your routine, you become panicky. You take risk going to work without knowing that if you ever will reach your work (an extreme example), you take risk with your purchases comfortable in knowing that you will pay when the bill is due and the seller is selling to you with the risk knowledge that you may or may not pay it later on. But they do indulge in risky behavior. Same goes for corporate entities who indulge in activities with uncertain outcome but with chances to reap in millions and billions if they succeed. All of us indulge in risk because it is like fun but also dangerous which makes it more exciting and pumps us our nervous system. You can see that how much the people take risk with other people's money by trading against obvious risks with outlandish size benefits of high riches and when the deal goes sour, they again take more risk because that is what is taught in business schools that high risk and high return. If you see that the great recession that we are somewhat recovering from was a great cesspool of oversize egos and unbelievable risks taken by individuals who it seems like we’re having too much fun with taking risk and reaping cash at an alarming rate and you will keep on seeing in the future that this risk appetite is not going to go away because there can be no fun if you don’t take a risk in life.