When you place your chips on a specific color (i.e. red or black) in a roulette game at a casino, you are gambling. The bigger the stake, the bigger is the gamble. You can gamble all of the money that you have in one bet. If you win, you win big. If you lose, you lose all.
Gambling is considered to be bad, especially if the bet is big and a loss may lead to financial ruin.
In recent years, banks have been gambling big, very big, to the tune of billions of dollars. They can bet on currency rates or on the chance of failures of any corporation. The types of bets have proliferated under the name of financial engineering and innovation. In some cases, they can gamble large amounts representing the capital of their shareholders and the deposits of their customers as well.
When the banks make these gambles, they do not call it a gamble. They call it by more respectable names, such as "trading:" or "risk management".
Gambling is bad, if the stakes are high and may cause financial ruin. It is bad for individuals. It is bad for businesses. It is bad for banks.
Tan Kin Lian
- ► 2013 (348)
- ► 2012 (1270)
- ► 2011 (1873)
02/14 - 02/21
- Accountant interested in Pro-Investor
- Good response to rechargeble torchlight
- Talk at Pasir Ris Library - Financial Planning in ...
- Increase in motor insurance premiums
- Shared bicycles at University of Indonesia
- Affordable housing - 3 years of average income
- Products at Internet Shop
- Get compensation from distributor
- Biggest speculation of a lifetime
- Insurance brokerage and conflict of interest
- TKL Intelligence Quiz Vol 3
- Social insurance
- Giving up an existing investment-linked policy
- Switching to a new policy with special benefits
- Home: our planet Earth
- SCMP: Government may compete for insurance. Govern...
- Difficult to cross Singapore roads
- Toxic products and traffic control
- Switching between guaranteed and investment linked...
- Watching EPL in 2010
- Resort World Sentosa
- Gift for mothers of new born babies
- Financial Planning book available at bookstores
- Draft letter to MAS on Mini-bond settlement
- Draft letter to Trustee of Minibond
- Fee to swap counter party on Mini bond
- Needs and Wants
- Logic9 (pocket size Sudoku)
- Switching to a limited payment whole life policy
- All in the Family
- Economic strategies committee - real change or jus...
- Cut working week to 21 hours
- Alex Tan's talk at Speaker's Corner
- Slow start for Integrated Resort in Sentosa
- Minimum wage and cost of living
- Speaker's Corner - Singaporeans vs Foreigners
- Minimum wage and cost of a maid
- Welfare in Singapore
- A nice name for big gambling
- ▼ 02/14 - 02/21 (40)
- ► 2009 (1655)
- ► 2008 (2105)
- ► 2007 (1803)
- ► 2006 (696)
- ► 2005 (159)