Insurance Tips

The other day I called my friend Larry, and hit him in the middle of an online stock trading. "In fact, options trading, "he said," And I did not hurt. "

Seeing as how the economy has been I was surprised. He spent the next 40 minutes or explain what "options" were, and how it differs from the "future", how both related to the stock exchange and investment companies, and so on. At the end of his explanation was largely in the dark but a trend was evident.

"It's the game, I said, amazed." The stock market is a legal casino, where people bet on, eh … others … perception of the value of the shares of … … .. property. Companies that do a really! You know, it sounds downright sinner. "

"Bingo! laughed. "All investments – including banks – Is it the game, but few people know. That is why our economy in its current slump. "Then he has a ten-minute diatribe on how the government never should have bailed out the" stupid "The banks made the same mistake that caused the 1929 crash: the treatment of loans, debts and mortgages as if they were real estate – which are not. "The government should let these fools collapse," he said, "And the smaller, more intelligent banks pick up the pieces. The only problem with this is the "transparency" that people know exactly what their assets are really worth. Any thing that people lose confidence under in their value. The banks themselves secret Silly lowered the value of their assets. "

"… Because, I went" Lower perception People of the value of … Wow So if the banks were quite honest, had said publicly what they were doing and where every penny your money goes, everyone would have known what they were worth … "

"Its value may not have been inflated and deflated by After "Finish the thought." Moreover, investors saw when and where they have made bad decisions, and have been invited to this country. Precisely how and why small banks have survived more intelligent – to pick up the pieces, as we do now. "

"And as we do with their" options "," I guessed. "Thus, Ben Franklin was right: it is really honesty the best policy. "

"Bingo! laughed again, and embarked on another rant about how, in the 19th century – before the Reserve FDIC Federal dreamed before there was "monitoring" and "safe" for banks, when the U.S. currency has been very solid – the value of our currency actually increased, which can be purchased for $ 1.00 in 1800, prices were $ 0.80 in 1900. Nobody really trust banks time, but has undergone constant review, banks with the most obvious of "transparency" has attracted more investors, and those who secret soon failed. "The truth can be a deadly weapon," he said.

But I was struck with another thought. During the same century, America's 19th – with its "child" belief in the honesty – has become one of the most rich in the world. But there are many countries – societies, cultures – in the world today (I name any name), who argue that the truth is a precious jewel "- too precious to be given free, otherwise, must be sold to the highest bidder – and even then it is acceptable to deceive the buyer if you can. These same crops – some of these millennia-old – may have some very rich, but most of its inhabitants are very poor and always been. Although the benefits of modern industry, the simplest given to companies from countries like the United States has not made much difference. Could the very attitude of honesty is the cause?

Why not? If one assumes that all persons caring for you will lie and cheat if you can, to answer for the lies and deception to turn, otherwise the other will a simple, easy to fly, and actually steal you blind. This makes any type of transaction so slow and cautious as a hand-off between drug trafficking – which is no way to create an economy run fast, flexible and durable. These cultures have a long history of production of rogue traders and a host thieves of mind, and play in the economic war with its trading partners – which usually ends in ruin. This is why many of these Third World remained corrupt and the poor despite modern American and European efforts to help.

So I do not trust people who insist that America must be more "global perspective" and to adopt the policy of "realpolitik". They are so good to say we should adopt a consistent attitude of cynicism, lies and deception: that should be as corrupt as the companies seek, or leave us blind stolen.

No, it is disaster. History and economics show I really need to hold fast to our principles, defend the honesty, not only dealing with cultures that refuse to do the same thing, no matter how tempting that the benefits we can offer short-term. Long term, honesty – transparency, as he called Larry – that's what will save us.

Ben Franklin, who was drinking with the courts Europe and was very familiar with the "realpolitik" knew whereof he spoke.

For more such rants, see http://www.lesliefish.com.