Thursday, January 06, 2005

Shifting Risk

Shifting Risk, is the most concerning situation for most economic conservative voters, as we look ahead in capital creation.
One might think of this as counter intuitive, it is not. This sift should part of the conversation and forecasting. As risk shifts from government to individuals, at larger levels than it should.
The risk of abuse also increases, as we are experiencing increase the demand for regulation, making the retention of capital an incremental and riskier event. Many of those risks are been shifted to a larger and non-economically and financially qualified groups of society, that, eventually, will react to swings of risk and pricing with extreme set of decision versus a balance analysis and solid knowledge.
Government as it is been developed in the past 30 years is becoming a mammoth of restrains and walking away from its responsibilities as a citizen entity.
The danger is taking place, is mostly due to the size of power exercised proportionally from a very small group to take advantage of a very large group, creating serious challenges to free markets.
The amount of subsidies to this small powerful group, versus the amount of subsidies to the majority of citizens, today, is so disproportional that might surprise many how the balance will be corrected. The laws of regressions apply to egregious abusers equally in time.
Reference link: http://moneycentral.msn.com/content/P97298.asp


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