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Showing posts from June, 2009

Financial Epiphany 1 - Poker, Not Chocolate Croissants

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I'm still trying to figure out the gory details of Crash 6.0 (otherwise known as The Crash Of 2008).  Its been a bunch-a years since those inglorious days, and there still isn't all that much clarity around why  it happened. I, on the other hand, have had a minor ephipany, to wit,   too many people were playing Poker, but acted like they were making Chocolate Croissants . Huh? Work with me here, as I walk you through this The Poker Game Ten of you oh-so-smart types get together to play poker. Each of you comes to the table with $1000. Lets just say that, due to either skill, luck, stacked decks - or a combination thereof - Jane walks off with $10,000. This is a classic - and highly facetious - example of what is called a zero sum game . Jane may have made a proft of $9K, but each of the rest of you not-so-smart (or no-so-lucky) types posted a loss of $1K. In short, the total amount of money that the ten of you have remains at $10K - admittedly all with Jane - and t