Financial Risk: The Dangers of a 'Sure Thing' Video

Complete video at: http://fora.tv/2009/07/15/Max_Barry_on_Risk

Satirical author Max Barry discusses a hypothetical game where players risk losing $10 to earn $10.10, which he explains is actually a losing proposition. He argues that making those kinds of investments are what led to the recent financial crisis, and that buying a lottery ticket would have been a better investment.

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Bestselling satirical novelist Max Barry explains how our attitudes toward risk both define and confine us.

He uses the mishandling of financial risk in the corporate world as a springboard to a more general discussion about the ways our attitudes towards different kinds of risk define us as people -- how risk informs the fundamental decisions we make about our lives. - Australian Broadcasting Corporation

Max Barry is a contemporary Australian author. He also maintains a blog on various topics, including writing, marketing and politics. Barry is also the creator of NationStates (a game created to help advertise his novel, Jennifer Government) and is the owner of the website Tales of Corporate Oppression.

In early 2004, Barry converted his web site to a weblog and began regularly posting to it. In the November 2004 issue of the magazine Fast Company the novel Company was ranked at number 8 on a list of the top 100 people, ideas, and trends that will change how we work and live in 2005.

Barry has recently finished writing the screenplay for his novel, Syrup, which was optioned by Fortress Entertainment. Universal Pictures has acquired screen rights to Company, which will be adapted by Steve Pink. Jennifer Government has also been optioned by Steven Soderbergh and George Clooney's Section 8 Films.

i love the? way he ...
i love the? way he explains it:)

Hai ragione. You're ...
Hai ragione. You're right, that's? the easiest way. The difficult part is honestly convincing people to give you money (indeed, even doing it dishonestly it's not that easy).

Nah...if you want ...
Nah...if you want to get rich you have to take a risk with someone elses? money.

It also tells you? ...
It also tells you? that "You have to have money to win money."

In other words: If ...
In other words: If you want to be rich you gotta risk. Safety of investments? assures only that you will not gain money.

Opening a ...
Opening a restaurant in a western country implies a probability of about 60 % of going belly up in the first two years. That's definetely a worst bet than the 10 vs the 10.10 $ of the example. I guess statistics about almost all? entrepreneurial ventures are worst then the aforementioned example. The fact is that if we stick to strictly mathematical principles our society would get paralized. It's also the reason statisticians are not known for being rich guys.

Well said, I? ...
Well said, I? really like this author