4 ms·

One can always stamp out risk by reducing return.

• timr 18y ago
  ...what? That's nonsense. You might be able to "stamp out" return by reducing risk, but the converse doesn't hold: there are plenty of ways to risk money without having any reasonable expectation of return.
  • jacoblyles 18y ago
    In other phrasing, return often requires risky behaviors. One is able to reduce risk (by outlawing risky behaviors) if one is willing to except a permanently lower level of return. At the extreme, outlawing private investment (which is inherently risky) would reduce bubbles. I know of no price bubbles or market panics in North Korea.