The Financial Times carried a report:
The Japanese conglomerate had been snapping up options in tech stocks during the past month in huge amounts, fuelling the largest ever trading volumes in contracts linked to individual companies, these people said. One banker described it as a ‘dangerous’ bet.
Most forms of investment involve laying out money in the hope that you will be better off for having done so. To that extent, investing may be said to involve betting. If instead of putting my cash under the bed, I deposit it with the bank, I am hoping that the bank will repay that deposit on demand with interest. I am betting that the bank will not run out of money before I make that call. If instead of depositing the money as a customer and lender, I buy shares in the bank, I am making a forecast, and backing it up with money, that the bank will carry on business at a level of profit that will give me a greater return on my money as a shareholder than it would give to me as a customer and depositor. That after all must be the premise on which the directors of the bank manage its business. Their job is to run the business so that it gives a better return to its shareholders and investors than it gives to its depositors and customers. That is the very essence of the business. And most people understand that the greater the rate of return you get, the greater is the risk you take. So, any investing can be seen as a type of betting. It is therefore hardly illuminating to describe investing as betting. It’s a bit like saying that a dog is canine. But the word ‘dangerous’ does add something. This bet is thought to carry more risk, and presumably therefore a higher rate of return.
As it happens, the press this morning carried a report that Tom Waterhouse – of betting on horse-racing fame – is going into the business of investing in the stock market – he will have ‘funds under management’ of companies involved in gaming. If you choose to invest in those funds, you might be looking at three levels of betting. The first level consists of the gaming companies Mr Waterhouse invests in making a profit; the second consists of Mr Waterhouse making a profit; and the third consists of your ending up better off with this form of investment compared to others.
There are epithets for those who pursue the last line of investment. ‘Credulous’ is one of the more polite epithets. And that’s before you ask if the house always wins or that the business of Mr Waterhouse is likely to be structured on the premise that he gets more out of it than you will.
Trump is a hot but threatening politician, exuding a primitive albeit vicious power. Biden, by contrast, is a cool politician, a decent man, but, compared with Trump, he looks weak, even fragile. This election is a civil war over what constitutes virtue.
The Australian, 2 September, 2020, Paul Kelly
The last politician I can think of who used the word ‘virtue’ in a political context was Robespierre – and he did not meet a good end. But if this election is between a man who is decent and one who is not, ‘virtue’ could know only one winner. You might get more sense from Superman.