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Strategies & Market Trends : ahhaha's ahs

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To: ahhaha who wrote (8096)4/18/2006 3:14:18 PM
From: Lhn5Read Replies (1) of 24758
 
<<I don't agree. To me risk management is to decrease the potential volatility of costs but at probably a higher fixed cost than what the average cost would be over time if risk is not managed.

? Risk management tries to minimize expected costs. That doesn't happen at higher fixed cost.>>

If another entity takes over some of your management functions and some of your risk, they also take some of your profit.

<<Well just take it for whatever you think it is worth.

It's your insurance.>>

Not it is not my insurance.

<<Well I never said defraud.

Then what were you implying? >>

Incompatence, poor judgement, and random chance that things developed in this way or that and remain that way due to inertia or secondary benefit.

<<I just think these entities exist because the entities in control think the middlemen, rubber stampers, etc, do more good than they actually do.

This presumption implies the fraud.>>

Not at all it could be for the reasons stated in the immediately prior response.

<<Funny how that works. I think you'll find that at all intermediary steps, the service provided is critical, and this discovery would restore some confidence in you about how things work.>>

Only if I ignore everything I know and everything I have tried to explain here.

<<This "middlemen" are invented. Their existence evolves over time. There may be a better way than what has evolved, but that takes risk management and experimentation to discover.>>

True enough.
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