The Egocentricity of the Present Part 4 of 22
We must not forget that Short Swing Trading prudent risk taking is the lifeblood of capitalism, especially in the American form of capitalism where we are constantly replacing the old with the new, and the familiar with the new and the innovative. If we had not taken risks, we would never have created from scratch the $14 trillion U.S. economy.
Every one of us takes risks to advance our interests. A young person who goes to college, for example, risks the certain income from todays job, believing in the probability of a better paying one after graduation. As we accumulate excess savings, we place them at risk by investing in stocks and bonds to secure our retirement. We take risks by borrowing to build our businesses, with the expectation that a brighter future will enable us to repay our debts Turn $200 into $4630 in 30 Days and then some.
Of course, we also strive to manage risk. Once we are in the workforce, life insurance, for example, hedges the risk that we might die before we have socked away enough money to provide for our families. A prudent banker like Dick Evans drills down into the businesses he is lending to and knows them like the back of his hand in order to minimize risks to his short-term depositors from providing businesses with long-term financing. And so on.
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