The Egocentricity of the Present Part 5 of 22
The Egocentricity of the Present Part 5 of 22
The necessity of risk taking as a pillar of market capitalism has also given rise to agents to service it. Insurers and banks are two such agents, as are investment banks, money managers, hedge funds and other financial intermediaries that provide The Wizard Trader the means to assess, package and distribute risk. In the old days, their job was fairly straightforward. The agents packaged straight-up risk instruments like letters of credit, bankers acceptances, commercial paper, simple loans and stocks, life and property insurance and fixed-rate mortgages. More recently, with the aid of technology and computational power that can assess probabilities at lightning speeds, the menu of risk instruments expanded dramatically. Financial intermediaries began offering exotic products to satisfy almost any risk takers needs anywhere in the world at any time. Hunger for the new risk products Simple Currency Forex Trading was stimulated by a lengthy period of abnormally low interest rates and the normal human instinct to look for ever-higher yields when the returns on orthodox financial instruments, like U.S. Treasuries, municipal bonds or bank CDs, become ho-hum.
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