A Quote by Robert F. Engle
The collateralized debt obligation, the CDO, is a structure which allows you to more or less continuously choose how much risk you want to take in a whole batch of securities. And the reason why they got us into so much trouble is that it's hard to figure out how much risk you really are taking.
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Risk managers and investment bankers and actually, all kinds of investors took on more risk than they expected. So there was a failure of risk management. There was a failure to recognize how much risk there was in some of these securities that people bought.
At the close of life the question will be not how much have you got, but how much have you given; not how much have you won, but how much have you done; not how much have you saved, but how much have you sacrificed; how much have you loved and served, not how much were you honored.
When so many lives are at risk, when so much killing is going on, when there's so much chaos and suffering, isn't the risk warranted? ... And if we don't take the risk of coming to the conference, what do we do? We let it continue?
We're in the business not so much of being contrarians deliberately, but rather we like to take perceived risk instead of actual risk. And what I mean by that is that you get paid for taking a risk that people think is risky, you particularly don't get paid for taking actual risk.
When I get asked the question, "Do I want to loan you money?" I want to know, how much do you earn? How much do you owe? What is your net worth? When people talk about countries for some reason they only ask how much did you earn and what's your debt?
In some industries, we refer to risk taking as 'research and development.' At financial institutions, we often take risk by investing in securities.
The risk is that as we come out of this recession, we'll have so much debt to finance, we'll either have to have inflation or very high interest rates to continue to borrow the money, or both. That's a risk.
Climate change that is occurring right now is causing so much suffering all around the world. Whether it's adding 30 million people to the "at risk of starvation" list in 2008, whether it's the floods in Pakistan, or entire cultures at risk of disappearing, or desertification in Africa - all these things that are currently being caused by climate change. I think it's something that a lot of people want to figure out: how to make the shift, how to help. It seems like such an overwhelming problem.
However much risk we are taking, we can and probably should take more.
Where you want to be is always in control, never wishing, always trading, and always first and foremost protecting your ass. That's why most people lose money as individual investors or traders because they're not focusing on losing money. They need to focus on the money that they have at risk and how much capital is at risk in any single investment they have. If everyone spent 90 percent of their time on that, not 90 percent of the time on pie-in-the-sky ideas on how much money they're going to make, then they will be incredibly successful investors.
Normal adults can doodle, amble, and drift with no need to assess risk, since there is normally no risk at all. Jazz improvisation seems less subject to standards of risk than surgery, and less than much formal athletic performance, as in a tennis match.
Most investors are primarily oriented toward return, how much they can make and pay little attention to risk, how much they can lose.
I always saw my mother just making decisions that helped our family. It was much later when I realized how courageous she really was, and I came to understand what a risk-taker she was. That's very much a part of how I am.
How much easier my life would be if I did not love you! I thought. How much less painful, but how much plainer. How much less color there would be in the world.
We have a double standard, which is to say, a man can show how much he cares by being violent-see, he's jealous, he cares-a woman shows how much she cares by how much she's willing to be hurt; by how much she will take; how much she will endure; how suicidal she's prepared to be.
There was a lot of risk taken in the Mercury and Apollo eras, and we don't take those risks anymore. We've designed the systems to eliminate risk, which makes it take forever and cost too much money.
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