Traders Laboratory - View Single Post - Why do we stake our society's financial
View Single Post
  #5 (permalink)  
Old 02-24-2008, 05:58 PM
patsup patsup is offline
patsup has no status.

 
Join Date: Feb 2008
Posts: 1
Thanks: 0
Thanked 0 Times in 0 Posts
How do we finance "risky" endeavors? What is the alternative? If you are considering a system where there is a centrally planned authority, then that system also has risk, and it's harder for the central unit to get all the information, direct the "needs", it's more susceptible to corruption, etc.When information is distributed throughout a system (say in a market, the internet, or power grids) the risk of total failure is smaller, the information is spread more efficiently, etc.

Reply With Quote