Friday, July 10, 2009

The is no success without risk


There is no success without risk. Sometimes you have to take a job that involves risk to make a lot of money. Sometimes you have to look for risky investments to realize a considerable gain on your investment.

We have all seen how this works recently. A few highly visible ponsi schemes are good examples. They were all paying huge profits while they were operating while the investors did not realize that the profits were not profits at all but new money from new investors.

I have a lot of friends who are now unemployed. They decided some time ago to go into real estate because of the high appreciation in property values and high demand for new housing. Of course that all ended. My friends made a lot of money for a while but now they all have high expenses with no income. Hardly worth the trouble.

Others have been involved in new development and the same thing happened there. High earnings and high risks.

Was the ride worth it? Was it exciting enough?

I teach American History and Contemporary World History (20th Century) and I will assure you that this has happened a few times in the past. I think the only difference is how long it will last.

Warren Buffet yesterday commented on a national news program that we need to prepare ourselves for 11% plus unemployment and a recession that will continue for a long time. When your means to not meet your ends then you need to cut expenses.

Not hard when there has not been any inflation for many years.

I laugh when someone talks about costs and they add that they have to consider inflation in their costs. There is no inflation. If someone says that then you have my permission to laugh. We could only hope for inflation.

No comments yet