Risk and Reward
With my absence in writing for a couple of months, you could believe that I haven’t been thinking much about the ideas that I write about here at Plan B Philosophy. In reality, there is nothing further from the truth. I have so many ideas for blog posts that sometimes I don’t know where to start. But a few events during the past month have spurred me on to write. The event I want to focus on is multi-billion dollar trading loss by JP Morgan Chase and subject of risk. This loss happened as a result of a highly complicated trading scheme that had JP Morgan trying to mitigate risk in their portfolio by taking a bet on the European economy. The media was *shocked* by this event. It was seriously reported for about a week and JP Morgan Chase CEO, Jamie Dimon, testified in front of Congress. With an upcoming election and the political implications of the Volker Rule, we will probably hear about this for some time to come. Putting aside the actual issue, the media reaction amaze