It is said that "Do not put all eggs in to the box". It is a main idea of risk management.
Even if the box in the best one in the world, something or an accident could happen someday and destroy all eggs at once. That means you would not have anything to eat that day. Then, if you separate those eggs, it is less likely to lose all eggs at once. Even one box is striked by a sander, you will have eggs in the other box...
It could be a trouble for you, carrying some boxes instead of one, but if you separate the eggs into as many boxes as possible, there is the less risk loosing them all.
However, you should not use a box with a hole ever, never, ever........
you had better put all eggs into one box, rather than using box with a hole. As you know you would loose the eggs in the bad box for sure, regardless of the probablirity of "accidents"
There is only a risk but no return.......
That is the better explanation for the financial crisis in the U.S. Financial engineers did study how to use boxes to manage risk, but they did not how to check if the boxes have a hole or not....
They considered "subprime morgage" related financial products as a reliable box to put some of their eggs, but that was a box with holes. then they start loosing some of their eggs. It had made them abset so they stared taking all eggs out of the boxes to check whether other boxes may have a hole or not. At the moment, they are sure that there is no hole in a box "national tresuary bills". It is a story of the financial crisis now.
That means the box was not a box accually, it was a waste that they should never even look at.
Therefore, as a answer to solve the crisis, I reccomend the US financial department to print more tresuary bills to finance cash to intervine New York Stock Exchage, not foregine currency exchange market or other.
Because possible advarage divident yeild ratio is more than 5% which is about 1% above interest payment costs on the bills.
By intervining the stock market, the US government could save national financial system and private investors, as well as they can earn capital gains through divident payment as well as stock trading to reduce their long term debts.
Even if the box in the best one in the world, something or an accident could happen someday and destroy all eggs at once. That means you would not have anything to eat that day. Then, if you separate those eggs, it is less likely to lose all eggs at once. Even one box is striked by a sander, you will have eggs in the other box...
It could be a trouble for you, carrying some boxes instead of one, but if you separate the eggs into as many boxes as possible, there is the less risk loosing them all.
However, you should not use a box with a hole ever, never, ever........
you had better put all eggs into one box, rather than using box with a hole. As you know you would loose the eggs in the bad box for sure, regardless of the probablirity of "accidents"
There is only a risk but no return.......
That is the better explanation for the financial crisis in the U.S. Financial engineers did study how to use boxes to manage risk, but they did not how to check if the boxes have a hole or not....
They considered "subprime morgage" related financial products as a reliable box to put some of their eggs, but that was a box with holes. then they start loosing some of their eggs. It had made them abset so they stared taking all eggs out of the boxes to check whether other boxes may have a hole or not. At the moment, they are sure that there is no hole in a box "national tresuary bills". It is a story of the financial crisis now.
That means the box was not a box accually, it was a waste that they should never even look at.
Therefore, as a answer to solve the crisis, I reccomend the US financial department to print more tresuary bills to finance cash to intervine New York Stock Exchage, not foregine currency exchange market or other.
Because possible advarage divident yeild ratio is more than 5% which is about 1% above interest payment costs on the bills.
By intervining the stock market, the US government could save national financial system and private investors, as well as they can earn capital gains through divident payment as well as stock trading to reduce their long term debts.