You are gambling whenever you get in your car and drive. You are gambling if you get out of bed. You are gambling if you spend too much time in bed.
Risk being present isn’t enough. I think the definition of gambling should include a willful decision to increase the level of risk.
Company A sells widgets for dollars made from raw materials bought in yen.
Company B sells woggles for yen made from raw materials bought in dollars.
Both companies can reduce their risk by agreeing to exchange yen for dollars at an agreed fixed value. No one is gambling. Everyone is reducing their risk.
Interest rates, some companies may have floating income they wish to swap for long term fixed, and others may have too much long term debt which has a volatile mtm value.
Counterparty risk, usually mitigated by diversification. Companies pool their specific risk for a lower, but more certain, general risk (and use clearing houses).
Liquidity risk. Only a problem if you need to sell something quickly. Here there are gamblers taking advantage. There’s no-one that naturally wants to take the other side of illiquid assets.
Not necessarily. Two companies in different countries can both reduce their risk by entering into an FX swap.
bank is required to keep 10 percent in cash
Not correct. Your liabilities need to be sufficiently smaller than your assets. Capital reserves don’t need to be in cash.
someone else has 180, that money has been ‘created’ out of thin air
200 dollars went in. 180 dollars came out. 20 dollars stay in the bank. No dollars have been created.
Look up fractional reserved banking.
Look up solvency frameworks
Futures are still technically gambling.
If you enter into a futures contract to fix your costs (electricity, oil, steel etc.) then you are reducing your risk. This is the opposite of gambling.
Sometimes doing nothing is the risky option.
When a bank gives out a credit, that money is created on the spot, not drawn from somewhere.
Incorrect. Try starting your own bank and doing that. No other banks will do business with you and you’ll run out of money to give your borrowers.
The derivatives market is something like 7 times that.
The notional value is that size, but that’s not really representative. You can’t compare or even add notional amounts.
For example, temperature derivatives would have a notional value measured in millions of °C.
Why do you have to download an … oh an appetiser.
If you don’t explain why you hold this opinion your comment is wasted.
Do it before they drag you into an argument, lose, then ban you.
Why is this good? Not being negative, just want to understand.
If I want to commit a selection of files, but not others, then I’m clicking boxes not typing filenames.
Biggest Christian rock group.
Which seems fine in spirit, but we don’t really want the letter of the law making something like this
O/-<
illegal
Except if you plant flowers. Bulbs taste awful.
Grobow v. Perot, 539 A.2d 180 (Del. 1988).
Directors in a business should:
It is a legal obligation.
Nope. There are these obligations but it is not illegal for a CEO to perform sub optimally, or even make multi year losses.
Disagree. Diplomatic channels should always be open because alternative forms of communication are usually violent.
Have you not seen the videos that come out of there?
According to Perkins, his job at the firm was to convince leaders of underdeveloped countries to accept substantial development loans for large construction and engineering projects. Ensuring that these projects were contracted to U.S. companies, such loans provided political influence for the US and access to natural resources for American companies, thus primarily helping local elites and wealthy families, rather than the poor.