Reflections of the global meltdown
A lot will be written on the global meltdown triggered by the sub-prime crisis … As I reflect on that there are some lessons to be learnt …
There is a law that seems to be universal “The law of greed” ...
If your expectations on the return on investment exceed a greed threshold ... then one law that kicks is the law of diminishing returns ...
This axiomatic expression can be validated when one estimates the amount of money the world spends on gambling ... the returns expected far exceeds the greed threshold ... several million punters gamble as if there is no tomorrow losing more and more money in stocks and casino's...
The other point this brings out is every one at some level is greedy as it maps on to our basal instincts ... These are wired and all we see seems to be the need to eat and mate ... There seems to be an insatiable appetite in humankind to maximize the pleasures derived from satisfying these primal instincts despite the fact that even here the law of diminishing returns is at play ...
Managing greed is better than managing wealth …
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1 comment:
Off topic comment - the color scheme of your blog is not readable. The white on black combination is quite painful to the eye. I would suggest a dark on light combination instead.
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