Banking Risk Quotes

That would require faith. I do not beliebe in faith. I believe it exists but I do not believe it works. I don't know what the rules are here; I can't risk throwing everything away on a long shot.

An afternoon drive from Los Angeles will take you up into the high mountains, where eagles circle above the forests and the cold blue lakes, or out over the Mojave Desert, with its weird vegetation and immense vistas. Not very far away are Death Valley, and Yosemite, and Sequoia Forest with its giant trees which were growing long before the Parthenon was built; they are the oldest living things in the world. One should visit such places often, and be conscious, in the midst of the city, of their surrounding presence. For this is the real nature of California and the secret of its fascination; this untamed, undomesticated, aloof, prehistoric landscape which relentlessly reminds the traveller of his human condition and the circumstances of his tenure upon the earth. "You are perfectly welcome," it tells him, "during your short visit. Everything is at your disposal. Only, I must warn you, if things go wrong, don't blame me. I accept no responsibility. I am not part of your neurosis. Don't cry to me for safety. There is no home here. There is no security in your mansions or your fortresses, your family vaults or your banks or your double beds. Understand this fact, and you will be free. Accept it, and you will be happy.

Climate change has never received the crisis treatment from our leaders, despite the fact that it carries the risk of destroying lives on a vastly greater scale than collapsed banks or collapsed buildings.

What would it mean in practice to eliminate all the 'negative people' from one's life? It might be a good move to separate from a chronically carping spouse, but it is not so easy to abandon the whiny toddler, the colicky infant, or the sullen teenager. And at the workplace, while it's probably advisable to detect and terminate those who show signs of becoming mass killers, there are other annoying people who might actually have something useful to say: the financial officer who keeps worrying about the bank's subprime mortgage exposure or the auto executive who questions the company's overinvestment in SUVs and trucks. Purge everyone who 'brings you down,' and you risk being very lonely, or, what is worse, cut off from reality.

On her way to the sink, she says, "Where's Toraf and Rayna? Oh!" She gasps. "Did they find an island?" Galen shakes his head and pours himself some water from a pitcher on the table, grateful for a topic change. "Nope. They're upstairs. He snuck into her bed. I've never seen anyone risk his life like that." Rachel makes a tsking sound as she rinses some dishes. "Why does everyone keep talking about finding an island?" Emma asks, finishing the rest of her juice. "Who else is talking about it?" Galen frowns. "In the living room, I hear Toraf give her a choice between going to the kitchen or finding an island." Galen laughs. "And she picked the kitchen, right?" Emma nods. "What? What's so funny?" "Rayna and Toraf are mated. I guess humans call it married," he says. "Syrena find an island when they're ready to...mate in a physical sense. We can only do that in human form." "Oh. Oh. Um, okay," she says, blushing anew. "I wondered about that. The physical part, I mean. So they're married? Seems like she hates him.

They're upstairs. He snuck into her bed. I've never seen anyone risk his life like that.

Most people are terrible at risk assessment. They tend to overstate the risk of dramatic and unlikely events at the expense of more common and boring (if equally devastating) events.

The only thing they really have in common is moral hazard. That’s a banking term, of course. Someone had to come up with it to describe the way the financial markets work, because the fact that banks are immoral is so obvious to us that simply calling them “immoral” wasn’t enough. We needed a way to describe the fact that it’s so unlikely that a bank would ever behave morally that it can only be considered a risk for them even to try.

Let us imagine that life is a river. Most people are clinging to the bank, afraid to let go and risk being carried along by the current of the river. At a certain point, each of us must be willing to simply let go, and trust the river to carry us along safely. At this point, we learn to “go with the flow” — and it feels wonderful. Once we have become accustomed to being in the flow of the river, we can begin to look ahead and guide our course onward, deciding where the course looks best, steering the way around boulders and snags, and choosing which of the many channels and branches of the river we prefer to follow, all the while still “going with the flow.

Markets look a lot less efficient from the banks of the Hudson than from the banks of the Charles.

Do you want a revolution in science? Do what businesspeople do when they want a technological revolution: Just change the rules a bit. Let in a few revolutionaries. Make the hierarchy a bit flatter, to give the young people more scope and freedom. Create some opportunities for high-risk/high-payoff people, so as to balance the huge investment you made in low-risk, incremental science. The technology companies and investment banks use this strategy. Why not try it in academia? The payoff could be discovering how the universe works.

To further encourage flow of credit to what we thought were stressed sectors, we extended regulatory forbearance to banks by relaxing the risk weights and provisioning norms governing bank loans to the stressed sectors. This

I can’t be Pollyanna all the time. There is a certain risk in what we do. We have the power to make someone’s dream come true, but we also have the power to crush it forever.

I can live with my husband risking his life because that's who he is and I wouldn't change him.

A fisherman in the month of May stood angling on the bank of the Thames with an artificial fly. He threw his bait with so much art, that a young trout was rushing toward it, when she was prevented by her mother. “Never,” said she, “my child, be too precipitate, where there is a possibility of danger. Take due time to consider, before you risk an action that may be fatal. How know you whether yon appearance be indeed a fly, or the snare of an enemy? Let someone else make the experiment before you. If it be a fly, he will very probably elude the first attack: and the second may be made, if not with success, at least with safety.” She had no sooner spoken, than a gudgeon seized the pretended fly, and became an example to the giddy daughter of the importance of her mother’s counsel.   FABLES, ROBERT DODSLEY, 1703-1764

Poetic Terrorism WEIRD DANCING IN ALL-NIGHT computer-banking lobbies. Unauthorized pyrotechnic displays. Land-art, earth-works as bizarre alien artifacts strewn in State Parks. Burglarize houses but instead of stealing, leave Poetic-Terrorist objects. Kidnap someone & make them happy. Pick someone at random & convince them they're the heir to an enormous, useless & amazing fortune--say 5000 square miles of Antarctica, or an aging circus elephant, or an orphanage in Bombay, or a collection of alchemical mss. ... Bolt up brass commemorative plaques in places (public or private) where you have experienced a revelation or had a particularly fulfilling sexual experience, etc. Go naked for a sign. Organize a strike in your school or workplace on the grounds that it does not satisfy your need for indolence & spiritual beauty. Graffiti-art loaned some grace to ugly subways & rigid public monuments--PT-art can also be created for public places: poems scrawled in courthouse lavatories, small fetishes abandoned in parks & restaurants, Xerox-art under windshield-wipers of parked cars, Big Character Slogans pasted on playground walls, anonymous letters mailed to random or chosen recipients (mail fraud), pirate radio transmissions, wet cement... The audience reaction or aesthetic-shock produced by PT ought to be at least as strong as the emotion of terror-- powerful disgust, sexual arousal, superstitious awe, sudden intuitive breakthrough, dada-esque angst--no matter whether the PT is aimed at one person or many, no matter whether it is "signed" or anonymous, if it does not change someone's life (aside from the artist) it fails. PT is an act in a Theater of Cruelty which has no stage, no rows of seats, no tickets & no walls. In order to work at all, PT must categorically be divorced from all conventional structures for art consumption (galleries, publications, media). Even the guerilla Situationist tactics of street theater are perhaps too well known & expected now. An exquisite seduction carried out not only in the cause of mutual satisfaction but also as a conscious act in a deliberately beautiful life--may be the ultimate PT. The PTerrorist behaves like a confidence-trickster whose aim is not money but CHANGE. Don't do PT for other artists, do it for people who will not realize (at least for a few moments) that what you have done is art. Avoid recognizable art-categories, avoid politics, don't stick around to argue, don't be sentimental; be ruthless, take risks, vandalize only what must be defaced, do something children will remember all their lives--but don't be spontaneous unless the PT Muse has possessed you. Dress up. Leave a false name. Be legendary. The best PT is against the law, but don't get caught. Art as crime; crime as art.

Some of us try desperately to hold on to ourselves, to live for ourselves. We look so bedraggled and pathetic doing it, hanging on to the dead branch of a bank account for dear life, afraid to risk ourselves on the untried wings of giving. We don’t think we can live generously because we have never tried. But the sooner we start the better, for we are going to have to give up our lives finally, and the longer we wait the less time we have for the soaring and swooping life of grace.

Nature likes to overinsure itself. Layers of redundancy are the central risk management property of natural systems. We humans have two kidneys (this may even include accountants), extra spare parts, and extra capacity in many, many things (say, lungs, neural system, arterial apparatus), while human design tends to be spare and inversely redundant, so to speak—we have a historical track record of engaging in debt, which is the opposite of redundancy (fifty thousand in extra cash in the bank or, better, under the mattress, is redundancy; owing the bank an equivalent amount, that is, debt, is the opposite of redundancy). Redundancy is ambiguous because it seems like a waste if nothing unusual happens. Except that something unusual happens—usually.

What is certainly clear is that again and again, countries, banks, individuals, and firms take on excessive debt in good times without enough awareness of the risks that will follow when the inevitable recession hits.

We were taking out mortgages we couldn’t afford because they were camouflaged to look as if we had a reasonable chance of paying them back. Banks then changed the bankruptcy laws so that we could not get out of our obligations once the rates changed. Lastly, they sold us back our own mortgages, shifting back to us any of the risk through our money-market accounts and pension funds.

If your head isn’t up to the job, your legs better be!” (It should be noted that when she died, the bank robber’s mom consisted of so much gin and tonic that they didn’t dare cremate her because of the risk of explosion, but that doesn’t mean she didn’t have good advice to offer.)

Anyone mindful of one overwhelming tenet, if time travel is possible, will be possible, has ever been possible it is with us now must concur that this is the only time in history that such a banking cartel has risked its wealth on one sole adventure. Strengthening this incredible consideration was the discovery of an implant in Napoleon's skull.

If you could really insure banks and other lenders against default risk, that might well unleash a great wave of capital into the economy.

Alternative Reference Rate; Risk Free; LIBOR free.

RFR is; wringing-out the risk, out of LIBOR.

Then borrow it, that’s what banks are for. Why should we risk our own money if we can use someone else’s?” Paulina replied, as she always did in such cases.

Cash in your bank account is as safe as the creditworthiness of your banker. No more, no less.

War -- is a last ditch moral nightmare. People begin worshiping a mysterious slouching beast, following after, bowing down, offering gifts, making much of zero; and worse. Love of death, idolatry, fear of life; that roughshod trek of war and warmakers throughout the world, hand in hand with death. Long live death! They wouldn't worship it if they weren't in love. Or if they weren't in fear. The second being a state of devouring, at least, as the first. I think the clue is the second masquerading as the first -- just as the beast is the ape of god; to do some thing successfully, you have to, above all, hide what your up to. In this way fear can ape love. Death can demand a tribute owed to life, the ape can play God. Such reflections are of course ill at ease by some: those to whom the state is a given, the church is a given, Western culture a given, war a given, consumerism a given, paying taxes a given. All the neat slots of existence into which one fits, birth to death and every point in between. Nothing to be created, no one to be responsible to, nothing to risk, no objections to lodge. Life is a mechanical horizontal sidewalk, of the kind you sometimes ride at airports between buildings. One is carried along, a zonked spectator... Every nation-state tends towards the imperial -- that is the point. Through banks, armies, secret police propaganda courts and jails, treaties, taxes, laws and orders, myths of civil obedience, assumptions of civic virtue at the top. Still it should be said of the political left, we expect something better. And correctly. We put more trust in those who show a measure of compassion, who denounce the hideous social arrangements that make war inevitable and human desire omnipresent; which fosters corporate selfishness, panders to appetites and disorder, waste the earth.

if a bank failed to meet its quota for loans to low-income minorities, it ran a high risk of failing to earn a “satisfactory” CRA rating from the Federal Deposit Insurance Corporation.

Of course, there’s no clear line between who creates wealth and who shifts it. Lots of jobs do both. There’s no denying that the financial sector can contribute to our wealth and grease the wheels of other sectors in the process. Banks can help to spread risks and back people with bright ideas. And yet, these days, banks have become so big that much of what they do is merely shuffle wealth around, or even destroy it. Instead of growing the pie, the explosive expansion of the banking sector has increased the share it serves itself.4 Or take the legal profession. It goes without saying that the rule of law is necessary for a country to prosper. But now that the U.S. has seventeen times the number of lawyers per capita as Japan, does that make American rule of law seventeen times as effective?5 Or Americans seventeen times as protected? Far from it. Some law firms even make a practice of buying up patents for products they have no intention of producing, purely to enable them to sue people for patent infringement. Bizarrely, it’s precisely the jobs that shift money around – creating next to nothing of tangible value – that net the best salaries. It’s a fascinating, paradoxical state of affairs. How is it possible that all those agents of prosperity – the teachers, the police officers, the nurses – are paid so poorly, while the unimportant, superfluous, and even destructive shifters do so well?

Since dad is most at risk of being both bad-mouthed and less involved, lets look at three reasons bad-mouthing sin is in conflict with your child's best interest: 1. Your children grow up feeling, "I hate who I am." 2. Your children fear that "loving dad is betraying mom." 3. Bad-mouthing undermines dad's motivation to invest money and time in the bank of love and to become responible in response to the hope for love.

market leader in interest rate swaps. There was a natural role for a blue-chip corporation with the highest credit rating to stand in the middle of swaps and long-term options and the other risk-spawning innovations. The traits required of this corporation were that it not be a bank—and thus subject to bank regulation, and the need to reserve capital against risky assets—and that it be willing and able to bury exotic risks on its

Sometimes heroics revolted him; they seemed like an insult to the soldier who weighed the risks of the situation and made calm, cunning decisions based on experience and imagination, the sort of unshowy soldiering that didn’t win medals but wars.

The moment Salomon Brothers demonstrated the potential gains to be had from turning an investment bank into a public corporation and leveraging its balance sheet with exotic risks, the psychological foundations of Wall Street shifted, from trust to blind faith.

When you go from the fake New Orleans of Disneyland to the real one, where the captain of the paddle-wheel steamer says it is possible to see alligators on the banks of the river, and then you don't see any, you risk feeling homesick for Disneyland. -'City of Robots',1986

The novel’s merit, then—or its offence, depending where you stood—was not that it was authentic, but that it was credible. The bad dream turned out to be one that a lot of people in the world were sharing, since it asked the same old question that we are asking ourselves fifty years later: How far can we go in the rightful defence of our Western values without abandoning them along the way? My fictional chief of the British Service—I called him Control—had no doubt of the answer: “I mean, you can’t be less ruthless than the opposition simply because your government’s policy is benevolent, can you now?” Today, the same man, with better teeth and hair and a much smarter suit, can be heard explaining away the catastrophic illegal war in Iraq, or justifying medieval torture techniques as the preferred means of interrogation in the twenty-first century, or defending the inalienable right of closet psychopaths to bear semi-automatic weapons, and the use of unmanned drones as a risk-free method of assassinating one’s perceived enemies and anybody who has the bad luck to be standing near them. Or, as a loyal servant of his corporation, assuring us that smoking is harmless to the health of the Third World, and great banks are there to serve the public. What have I learned over the last fifty years? Come to think of it, not much. Just that the morals of the secret world are very like our own.

Robert Rubin, a former Secretary of the United States Treasury, one of those who sign their names on the banknote you just used to pay for coffee, collected more than $120 million in compensation from Citibank in the decade preceding the banking crash of 2008. When the bank, literally insolvent, was rescued by the taxpayer, he didn’t write any check—he invoked uncertainty as an excuse. Heads he wins, tails he shouts “Black Swan.” Nor did Rubin acknowledge that he transferred risk to taxpayers: Spanish grammar specialists, assistant schoolteachers, supervisors in tin can factories, vegetarian nutrition advisors, and clerks for assistant district attorneys were “stopping him out,” that is, taking his risks and paying for his losses. But the worst casualty has been free markets, as the public, already prone to hating financiers, started conflating free markets and higher order forms of corruption and cronyism, when in fact it is the exact opposite: it is government, not markets, that makes these things possible by the mechanisms of bailouts. It is not just bailouts: government interference in general tends to remove skin in the game.

The extortion industry flourishes because the cost of making the threat is so low that the response rate doesn’t have to be very high for the business to remain viable. Sending a Facebook message is free, and making phone calls is cheap, often done by banks of prisoners who are employed to make the calls from prison using smuggled cell phones. Meanwhile, the risk of prosecution is minimal (Ricardo reported the extortionists’ bank details to the Mexico City police, who still failed to catch the culprits). Even a low response rate therefore makes the business successful.

So what," the Chelgrian asked, "is the point of me or anybody else writing a symphony, or anything else?" The avatar raised its brows in surprise. "Well, for one thing, you do it, it's you who gets the feeling of achievement." "Ignoring the subjective. What would be the point for those listening to it?" "They'd know it was one of their own species, not a Mind, who created it." "Ignoring that, too; suppose they weren't told it was by an AI, or didn't care." "If they hadn't been told then the comparison isn't complete; information is being concealed. If they don't care, then they're unlike any group of humans I've ever encountered." "But if you can—" "Ziller, are concerned that Minds—AIs, if you like—can create, or even just appear to create, original works of art?" "Frankly, when they're the sort of original works of art that I create, yes." "Ziller, it doesn't matter. You have to think like a mountain climber." "Oh, do I?" "Yes. Some people take days, sweat buckets, endure pain and cold and risk injury and—in some cases—permanent death to achieve the summit of a mountain only to discover there a party of their peers freshly arrived by aircraft and enjoying a light picnic." "If I was one of those climbers I'd be pretty damned annoyed." "Well, it is considered rather impolite to land an aircraft on a summit which people are at that moment struggling up to the hard way, but it can and does happen. Good manners indicate that the picnic ought to be shared and that those who arrived by aircraft express awe and respect for the accomplishment of the climbers. "The point, of course, is that the people who spent days and sweated buckets could also have taken an aircraft to the summit if all they'd wanted was to absorb the view. It is the struggle that they crave. The sense of achievement is produced by the route to and from the peak, not by the peak itself. It is just the fold between the pages." The avatar hesitated. It put its head a little to one side and narrowed its eyes. "How far do I have to take this analogy, Cr. Ziller?

I’m willing to risk sleep for my goals. I’m willing to risk money for my investments. I’m willing to risk my pride for walking in my truth. I’m willing to risk my freedom for my family. I’m willing to risk my heart for love. I’m not willing to risk anything for my peace, happiness, and spirituality.

The more you warn your colleagues about the tail risks—the rare but devastating events that can bring the bank down—the more they roll their eyes, give a yawn and change the subject. This eventually leads to self-censorship. The system filters out the thoughtful and replaces them with the faithful.”11

You judged your own attractiveness - physically, psychologically and in terms of status - then you knew your level and could either raise or lower your sights accordingly, risking rejection but with the possibility of advancement, or settling for a more reliably stable life but never knowing what you might have achieved.

The options also were a way of shifting enormous risk from Renaissance to the banks. Because the lenders technically owned the underlying securities in the basket-options transactions, the most Medallion could lose in the event of a sudden collapse was the premium it had paid for the options and the collateral held by the banks. That amounted to several hundred million dollars. By contrast, the banks faced billions of dollars of potential losses if Medallion were to experience deep troubles. In the words of a banker involved in the lending arrangement, the options allowed Medallion to “ring-fence” its stock portfolios, protecting other parts of the firm, including Laufer’s still-thriving futures trading, and ensuring Renaissance’s survival in the event something unforeseen took place. One staffer was so shocked by the terms of the financing that he shifted most of his life savings into Medallion, realizing the most he could lose was about 20 percent of his money.

Alexander's succeeding campaigns, until he reached the borders of India, were militarily a 'mopping up' of the Persian empire, while politically the consolidation of his own. He forced the Uxian defile and the Persian 'Gates' by an indirect approach, and when he was confronted on the Hydaspes by Porus, he produced a masterpiece of indirectness which showed the ripening of his own strategical powers. By laying in stores of corn, and by distributing his army widely along the western bank, he mystified his opponent as to his intentions. Repeated noisy marches and counter-marches of Alexander's cavalry first kept Porus on tenterhooks, and then, through repetition, dulled his reaction. Having thus fixed Porus to a definite and static position, Alexander left the bulk of his army opposite it, and himself with a picked force made a night crossing eighteen miles upstream. By the surprise of this indirect approach he dislocated the mental and moral balance of Porus, as well as the moral and physical balance of this army. In the ensuing battle Alexander, with a fraction of his own army, was enabled to defeat almost the whole of his enemy's. If this preliminary dislocation had not occurred there would have been no justification, either in theory or in fact, for Alexander's exposure of an isolated fraction to the risk of defeat in detail.

Traders risk the bank’s capital: they literally bet the bank, at least up to their limits. If they win then they get a share of the winnings. If they lose, then the bank picks up the loss. Traders might lose their jobs but the money at risk is not their own, it’s all OPM – other people’s money. What if the losses threaten the bank’s survival? Most banks are now ‘too big to fail’ and they can count on government support. Regulators are wary about ‘systemic risk’, and no regulator with an eye to their place in history wants the banking system to be flushed down the toilet on their watch. Traders can always play the systemic risk trump card. It is the ultimate in capitalism – the privatization of gains, the socialization of losses.

The moment Salomon Brothers demonstrated the potential gains to be had from turning an investment bank into a public corporation and leveraging its balance sheet with exotic risks, the psychological foundations of Wall Street shifted, from trust to blind faith. No investment bank owned by its employees would have leveraged itself 35:1, or bought and held $50 billion in mezzanine CDOs.

She already caused a scene with the repairmen who came to fix the shattered-by-Toraf bay window in my living room yesterday. Sure, she tried to whisper, but whispering, among many other things, isn’t her specialty, and especially not now that she sounds like she’s yodeling every sentence. But the glass installation guy did not appreciate her remark-which, in her defense, she had been trying to privately yodel to me-that his noise resembled a lobster claw. “A big one.” I can only imagine what kind of damage she would cause at school. She doesn’t know how to play things cool like Galen. Her brain doesn’t have that “inappropriate” filter, either. After all, that’s why she was left behind in the first place. If she’s not fit for the Syrena world right now, I’m not risking exposing her to the human world. Oh sure, she looks innocent enough right now, surfing the channels on the humongloid flat screen above the fireplace. But I remember not too long ago that there was a different flat screen hanging on the wall-and that it had to be replaced with the current one because she picked a fight with me that ended with a literal storm unfurling in the living room and damaging everything.

By the eighteenth and nineteenth centuries, astronomy replaced astrology, chemistry succeeded alchemy, probability theory displaced luck and fortune, insurance attenuated anxiety, banks replaced mattresses as the repository of people’s savings, city planning reduced the risks from fires, social hygiene and the germ theory dislodged disease, and the vagaries of life became considerably less vague.

Agape doesn’t necessarily involve high heroics, and it certainly doesn’t involve syrupy sentiment. It’s practical. It makes a difference. And it matters. It’s evident when someone cooks a nutritious meal for his children after an exhausting day at work. It’s seen when a mother takes on three or more jobs to do what it takes to keep her family clothed, housed, and fed. It’s donating blood on a regular basis to the local blood bank. It’s risking looking un-cool, and perhaps far more than that, by interrupting people as they’re telling a racist or anti-gay joke. It’s when someone decides to use the year end bonus that he received from his employer to repair the car of the struggling single mother down the street, or purchase a burial plot for someone without means, instead of buying that boat or motorcycle he’s been wanting.

Instead of making any further attempt to press the siege, Caesar devoted his energies to the creation of an artificial ford which enabled him to command both banks of the river Sicoris, on which Ilerda stood. This threatened tightening of his grip on their sources of supply induced Pompey's lieutenants to retire, while there was time. Caesar allowed them to slip away unpressed, but sent his Gallic cavalry to get on their rear and delay their march..Then, rather than assault the bridge held by the enemy's rear-guard, he took the risk of leading his legions through the deep ford, which was regarded as only traversable by cavalry and, marching in a wide circuit during the night, placed himself across the enemy's line of retreat. Even then he did not attempt battle, but was content to head off each attempt of the enemy to take a fresh line of retreat-using his cavalry to harass and delay them while his legions marched wide. Firmly holding in check the eagerness of his own men for battle, he at the same time encouraged fraternization with the men of the other side, who were growing more and m ore weary, hungry and depressed. Finally, when he had shepherded them back in the direction Ilerda, and forced them to take up a position devoid of water, they capitulated.

I won't meet his glare. "I guess I didn't care." Telling him I meant to murder his sister probably wouldn't go over very well. It would definitely cancel out the Hallmark vote. "Unacceptable. Don't ever risk your life like that again, do you understand?" I snort, sending little air bubbles dancing upward. "Hey, you know what else I don't care about? You giving me orders. I acted stupid, but-" "Actually, this is a good time to point out that I'm a Royal," he says, pointing to the small tattoo of a fork on his stomach, just above the border where his abs turn into fish. "And since you're obviously Syrena, you do have to obey me." "I'm what?" I say, trying to figure out how an eating utensil could possibly validate his claim of seniority. "Syrena. That's what we-including you-are called." "Syrena? Not mermaids?" Galen clears his throat. "Uh, mermaid?" "Really? You're gonna go there now? Fine, merman-wait, I wouldn't be a merman." Really though, what do I know about fish gender? Except that Galen is definitely male, no matter what species he is. "Just for the record, we hate that word. And by we, I mean you also." I roll my eyes. "Fine. But I'm not Syrena. Did I mention I don't have a big fin-" "You're not trying hard enough." "Trying hard enough? To grow a fin?

And so I lay awake, smoking and reflecting on many things, but, being of a practical turn of mind, chiefly on how we were to give those Masai villains the slip. It was a beautiful moonlight night, and, notwithstanding the mosquitoes, and the great risk we were running from fever from sleeping in such a spot, and forgetting that I had the cramp very badly in my right leg from squatting in a constrained position in the canoe, and that the Wakwafi who was sleeping beside me smelt horribly, I really began to enjoy myself. The moonbeams played upon the surface of the running water that speeded unceasingly past us towards the sea, like men's lives towards the grave, till it glittered like a wide sheet of silver, that is in the open where the trees threw no shadows. Near the banks, however, it was very dark, and the night wind sighed sadly in the reeds.

Do you have enough money in the bank to make it if everything goes wrong? If you do, congratulations. Go run your business with focus and with confidence. Stick with the high road and do the things you need to realize your business plan. If not, donʼt despair. You need an alternate plan. A plan that allows you to spend a percent- age of your time each week on low-risk revenue sources. A way to bring in freelance income while you build your core business.

Communist Romania almost everything was owned by the state. Democratic Romania quickly privatised its assets, selling them at bargain prices to the ex-communists, who alone grasped what was happening and collaborated to feather each other’s nests. Government companies that controlled national infrastructure and natural resources were sold to former communist officials at end-of-season prices while the party’s foot soldiers bought houses and apartments for pennies. Ion Iliescu was elected president of Romania, while his colleagues became ministers, parliament members, bank directors and multimillionaires. The new Romanian elite that controls the country to this day is composed mostly of former communists and their families. The masses who risked their necks in Timişoara and Bucharest settled for scraps, because they did not know how to cooperate and how to create an efficient organisation to look after their own interests.21

banks—the biggest of which was the $13.9 billion AIG owed to Goldman Sachs. When you added in the $8.4 billion in cash AIG had already forked over to Goldman in collateral, you saw that Goldman had transferred more than $20 billion in subprime mortgage bond risk into the insurance company, which was in one way or another being covered by the U.S. taxpayer. That fact alone was enough to make everyone wonder at once how much more of this stuff was out there, and who owned it.

Even with the bundling and splitting of tranches, Wall Street needed more mortgage borrowers, so it created the subprime market. These were loans to borrowers who did not meet the underwriting standards set forth by the GSEs, or “prime” loans. Subprime borrowers were riskier borrowers, either because they had fewer assets, lower credit score, or lower incomes. But in finance, higher risk is rewarded with higher yield, so mortgage brokers made even higher premiums from subprime loans.

Short of dragging her to the water kicking and screaming-and destroying Emma’s trust in him-Galen made the snap decision to leave them both in Rayna’s care. And the word “care” can be very subjective where his sister is concerned. But they couldn’t waste any more time; with Yudor’s head start on them, a search party might have already been dispatched, and if not, then Galen knew it was coming. And he couldn’t-wouldn’t-risk them finding Emma. Beautiful, stubborn Half-Breed Emma. And he’s a little perturbed that Nalia would. The three of them plod holes in the sand reaching up to Emma’s back porch, alongside a recent trail of someone else’s-probably Emma’s-footsteps leading from the beach. Galen knows this moment will always be burned into his memory. The moment when his brother, the Triton king, put on human clothes and walked up to a house built by humans, squinting in the broad daylight with eyes unaccustomed to the sun. What will he say to Nalia? What will he do?

We don’t worry about who manages the bank or what they do with our money. Even if we hear on the news that our bank has started to lend large sums of money to piano-playing cats, which we think is a bad idea, we would not feel the need to show up at the bank the next morning to ask for all of our money back. If you had lent your money to an individual and they in turn lent your money to piano-playing cats, you would demand your money back immediately. But because you deposit your money into a bank account insured by the federal government, you feel no need to keep a watchful eye on what your bank does with the money. Insurance removes the incentive for customers to police a bank. It can also remove the incentive for banks to police themselves because they do not bear the full or even the most serious consequences of their actions. Removing the natural tendencies of the market to notice and punish bad choices creates a moral hazard that may result in well-funded cats and other undetected market risks.

While investment is also meant to produce income to be exchanged for other goods, it is distinct from money in three respects: first, it offers a return, which money does not offer; second, it always involves a risk of failure, whereas money is supposed to carry the least risk; third, investments are less liquid than money, necessitating significant transaction costs every time they are to be spent. This can help us understand why there will always be demand for money, and why holding investments can never entirely replace money.

how Wall Street investment banks somehow had conned the rating agencies into blessing piles of crappy loans; how this had enabled the lending of trillions of dollars to ordinary Americans; how the ordinary Americans had happily complied and told the lies they needed to tell to obtain the loans; how the machinery that turned the loans into supposedly riskless securities was so complicated that investors had ceased to evaluate risks; how the problem had grown so big that the end was bound to be cataclysmic and have big social and political consequences.

What counts as money (and what doesn’t) is the result of choices we make, and those choices have a profound effect on who gets more stuff and who gets less, who gets to take risks when times are good, and who gets screwed when things go bad. Our choices about money gave us the world we live in now: the world where, when a pandemic hit in the spring of 2020, central banks could create trillions of dollars and euros and yen out of thin air in an effort to fight an economic collapse. In the future we’ll make different choices, and money will change again.

Forcing new loans upon the bankrupt on condition that they shrink their income is nothing short of cruel and unusual punishment. Greece was never bailed out. With their ‘rescue’ loan and their troika of bailiffs enthusiastically slashing incomes, the EU and IMF effectively condemned Greece to a modern version of the Dickensian debtors’ prison and then threw away the key. Debtors’ prisons were ultimately abandoned because, despite their cruelty, they neither deterred the accumulation of new bad debts nor helped creditors get their money back. For capitalism to advance in the nineteenth century, the absurd notion that all debts are sacred had to be ditched and replaced with the notion of limited liability. After all, if all debts are guaranteed, why should lenders lend responsibly? And why should some debts carry a higher interest rate than other debts, reflecting the higher risk of going bad? Bankruptcy and debt write-downs became for capitalism what hell had always been for Christian dogma – unpleasant yet essential – but curiously bankruptcy-denial was revived in the twenty-first century to deal with the Greek state’s insolvency. Why? Did the EU and the IMF not realize what they were doing? They knew exactly what they were doing. Despite their meticulous propaganda, in which they insisted that they were trying to save Greece, to grant the Greek people a second chance, to help reform Greece’s chronically crooked state and so on, the world’s most powerful institutions and governments were under no illusions. […] Banks restructure the debt of stressed corporations every day, not out of philanthropy but out of enlightened self-interest. But the problem was that, now that we had accepted the EU–IMF bailout, we were no longer dealing with banks but with politicians who had lied to their parliaments to convince them to relieve the banks of Greece’s debt and take it on themselves. A debt restructuring would require them to go back to their parliaments and confess their earlier sin, something they would never do voluntarily, fearful of the repercussions. The only alternative was to continue the pretence by giving the Greek government another wad of money with which to pretend to meet its debt repayments to the EU and the IMF: a second bailout.

One road out of the T junction ahead involves a restoration of high-inclusive growth that creates jobs, reduces the risk of financial instability, and counters excessive inequality. It is a path that also lowers political tensions, eases governance dysfunction, and holds the hope of defusing some of the world’s geopolitical threats. The other road is the one of even lower growth, persistently high unemployment, and still worsening inequality. It is a road that involves renewed global financial instability, fuels political extremism, and erodes social cohesion as well as integrity.

X gave most of its customers checking accounts, and so those customers who were able to get their mail would sometimes immediately take advantage by writing a series of bad checks. “I was thinking, ‘What the hell did I step into,’ ” said an early hire who was tasked with handling fraud. “There was no sort of risk mitigation in place.” When employees told Musk that the bank that X had partnered with to handle the checking accounts was complaining about bounced checks, Musk seemed confused by the concept. “I don’t understand,” Musk said. “If you don’t have money in your account, why would you write a check?

Chomsky was born and raised in Philadelphia, but his parents were among tens of thousands of Ashkenazic Jews who fled Russia following the assassination of Czar Alexander II in 1881.110 Jewish anarchists were singled out (falsely) as the assassins, setting off waves of the bloodiest pogroms in history. On top of that, thousands of Jews were forcibly removed from their homes in Moscow, Saint Petersburg, and adjoining regions and led off, some in chains, to the so-called Pale of Settlement, a geographical ghetto along Russia’s western frontier. They risked severe punishment if they ventured beyond the Pale…pale, as in the pales of a fence. Even inside the Pale they were restricted from entering cities such as Kiev and Nikolaev, from owning or even leasing property, receiving a college education, or engaging in certain professions. By 1910, 90 percent of Russia’s Jews—5.6 million in all—were confined to the Pale.111 Anarchism had been a logical enough reaction. The word “anarchy” literally means “without rulers.” The Jewish refugees from Russian racial hatred translated that as not merely no more czars…but no more authorities of any sort…no public officials, no police, no army, no courts of law, no judges, no jailers, no banks—no money—no financial

It was during the 1970s that statisticians decided it would be a good idea to measure banks’ “productivity” in terms of their risk-taking behavior. The more risk, the bigger their slice of the GDP.14 Hardly any wonder, then, that banks have continually upped their lending, egged on by politicians who have been convinced that the financial sector’s slice is every bit as valuable as the whole manufacturing industry. “If banking had been subtracted from the GDP, rather than added to it,” the Financial Times recently reported, “it is plausible to speculate that the financial crisis would never have happened.”15 The CEO who recklessly hawks mortgages and derivatives to lap up millions in bonuses currently contributes more to the GDP than a school packed with teachers or a factory full of car mechanics. We live in a world where the going rule seems to be that the more vital your occupation (cleaning, nursing, teaching), the lower you rate in the GDP. As the Nobel laureate James Tobin said back in 1984, “We are throwing more and more of our resources, including the cream of our youth, into financial activities remote from the production of goods and services, into activities that generate high private rewards disproportionate to their social productivity.”16

Are you going to dance with me, Senator? It's the only dignified way I can get my hands on you at the moment." Alan let the first wave of desire take him-a rush that blanked everyone else from his sight and hearng for one heady instant. Carefully he banked it before he rose and took her hand. "Strange how closely our minds work." After leading her to the dance floor he gathered her to him. "And how well," he murmured as their bodies melded together, "we fit." Shelby tilted her head back. "We shouldn't." Her eyes promised hot, private secrets. Her lips tempted-just parted, just curved. The hand on his shoulder moved nearer to his neck so she could brush his skin with her fingertips. "We shouldn't fit.We shouldn't understand each other.I can't quite figure out why we do." "You defy logic,Shelby.And therefore, logically,there's no reasonable answer." She laughed, pleased with the structured workings of his mine. "Oh, Alan, you're much too sensible to be argued with." "Which means you'll constantly do so." "Exactly." Still smiling,she rested her head on his shoulder. "You know me too well for my own good, Alan...and perhaps for yours. I'm in danger of adoring you." He remembered Myra had used that word to describe Shelby's feelings for her father. "I'll take the risk.Will you?

You mean you to tell me you don't eat fish?" Rayna barks. "I told you, Galen! How many times did I tell you?" "Rayna, be quiet," he says without looking at her. "We're wasting our time here!" She slams her fork down. "Rayna, I said-" "Oh, I heard what you said. And it's about time you listened to someone else for a change." Now would be a good time to blackout. Or ten minutes ago, before they unveiled the seafood surprise. But I don't even feel remotely dizzy. Or tired. In fact, Rayna's ranting seems to be igniting a weird charge in the room, sparking some sort of hidden energy all around us. So when Galen stands so fast his chair falls over, I'm not surprised. I stand, too. "Leave, Rayna. Right now," he grinds out. When Rayna stands, Toraf does, too. He keeps his expression neutral. I get the feeling he's used to outbursts like these. "You're just using her as a distraction from your real responsibilities, Galen," she spits. "And now you've risked us all. For her." “You were aware of the risks before you came, Rayna. If you feel exposed, leave,” Galen says coolly. Responsibilities? Exposed? I’m waiting for someone to admit they’re part of some violet-eye cult, and I didn’t make initiation. “I guess I don’t understand,” I say. “Oh, well, that’s a real shocker, isn’t it?” Rayna says.

-the bank recently introduced a new system that automated many tasks in my role as a risk analyst and therefore my position has been eliminated; I’m an exemplary employee and this is in no way a reflection of my performance; the company will provide me with ample support during the “transition.” I might be the only person in the history of mankind to eat an entire banana while losing her job. The “transition” would begin immediately. As in, I wasn’t allowed to go back to my desk, to collect my things, or to say goodbye to my coworkers. I was to be walked down to the security desk like a criminal and handed my belongings in a box, then shown the curb.

Making money in the markets is tough. The brilliant trader and investor Bernard Baruch put it well when he said, “If you are ready to give up everything else and study the whole history and background of the market and all principal companies whose stocks are on the board as carefully as a medical student studies anatomy—if you can do all that and in addition you have the cool nerves of a gambler, the sixth sense of a clairvoyant and the courage of a lion, you have a ghost of a chance.” In retrospect, the mistakes that led to my crash seemed embarrassingly obvious. First, I had been wildly overconfident and had let my emotions get the better of me. I learned (again) that no matter how much I knew and how hard I worked, I could never be certain enough to proclaim things like what I’d said on Wall $ treet Week: “There’ll be no soft landing. I can say that with absolute certainty, because I know how markets work.” I am still shocked and embarrassed by how arrogant I was. Second, I again saw the value of studying history. What had happened, after all, was “another one of those.” I should have realized that debts denominated in one’s own currency can be successfully restructured with the government’s help, and that when central banks simultaneously provide stimulus (as they did in March 1932, at the low point of the Great Depression, and as they did again in 1982), inflation and deflation can be balanced against each other. As in 1971, I had failed to recognize the lessons of history. Realizing that led me to try to make sense of all movements in all major economies and markets going back a hundred years and to come up with carefully tested decision-making principles that are timeless and universal. Third, I was reminded of how difficult it is to time markets. My long-term estimates of equilibrium levels were not reliable enough to bet on; too many things could happen between the time I placed my bets and the time (if ever) that my estimates were reached. Staring at these failings, I realized that if I was going to move forward without a high likelihood of getting whacked again, I would have to look at myself objectively and change—starting by learning a better way of handling the natural aggressiveness I’ve always shown in going after what I wanted. Imagine that in order to have a great life you have to cross a dangerous jungle. You can stay safe where you are and have an ordinary life, or you can risk crossing the jungle to have a terrific life. How would you approach that choice? Take a moment to think about it because it is the sort of choice that, in one form or another, we all have to make.

In the case of the Irish banks, the private bonds that they had purchased were uninsured. In the case of Greek state bonds, their buyers also knew that these were Greek law contracts, meaning that they could be given a haircut (written down) by a future stressed Greek government. This is precisely why the interest rates were higher than in Germany. Higher risk, higher rewards. As long as the gamble was paying off, the German bankers reaped benefits that they shared with no one. But when the gambles turned bad, as Irish banks and the Greek state failed, they demanded that the taxpayers of Greece and Ireland pay up, as if they had bought insurance from them.

Catching my breath, I lean against the front of the car and focus on the individual blades of grass hedging my flip-flop, trying not to throw up or pass out or both. In the far distance, a vehicle approaches-the first one to witness the scene of our accident. A million explanations run through my mind, but I can’t imagine a single scenario that would solve all-or any-of our issues right now. None of us can risk going to the hospital. Mom technically doesn’t qualify as human, so I’m sure we’d get a pretty interesting diagnosis. Rachel is technically supposed to be deceased as of the last ten years or so, and while she probably has a plethora of fake IDs, she’s still antsy around cops, which will surely be called to the hospital in the event of a gunshot wound, even if it is just in the foot. And let’s not forget that Mom and Rachel are new handcuff buddies. There just isn’t an explanation for any of this. That’s when I decide I’m not the one who should do the talking. After all, I didn’t kidnap anyone. I didn’t shoot anyone. And I certainly didn’t handcuff myself to the person who shot me. Besides, both Mom and Rachel are obviously much more skilled at deception then I’ll ever be. “If someone pulls over to help us, one of you is explaining all this,” I inform them. “You’ll probably want to figure it out fast, because here comes a car.” But the car comes and goes without even slowing. In fact, a lot of cars come and go, and if the situation weren’t so strange and if I weren’t so thankful that they didn’t actually stop, I’d be forced to reexamine what the world is coming to, not helping strangers in an accident. Then it occurs to me that maybe the passerby don’t realize it’s the scene of an accident. Mom’s car is in the ditch, but the ditch might be steep enough to hide it. It’s possible that no one can even see Rachel and Mom from the side of the road. Still, I am standing at the front of Rachel’s car. An innocent-looking teenage girl just loitering for fun in the middle of nowhere and no one cares to stop? Seriously? Just as I decide that people suck, a vehicle coming from the opposite direction slows and pulls up a few feet behind us. It’s not a good Samaritan traveler pulling over to see what he or she can do to inadvertently complicate things. It’s not an ambulance. It’s not a state trooper. If only we could be so lucky. But, nope, it’s way worse. Because it’s Galen’s SUV. From where I stand, I can see him looking at me from behind the wheel. His face is stricken and tried and relieved and pained. I want to want to want to believe the look in his eyes right now. The look that clearly says he’s found what he’s looking for, in more ways than one.

We had come to see the work of Wedco, a small bank – micro-finance institution is the formal term – that has been one of CARE’s great success stories in the region. Wedco began in 1989 with the idea of making small loans to groups of ladies, generally market traders, who previously had almost no access to business credit. The idea was that half a dozen or so female traders would form a business club and take out a small loan, which they would apportion among themselves, to help them expand or improve their businesses. The idea of having a club was to spread the risk. It seemed a slightly loopy idea to many to focus exclusively on females, but it has been a runaway success.

Cryptocurrencies may provide an illusion of financial freedom and control, but the reality is that users often rely on centralized exchanges and wallets, introducing counterparty risk and potential loss of control over their assets. The difference though is that its nearly impossible to hold these counterparties accountable. They're selling you one kind of freedom for the price of many additional risks. I was once a little woo’d by the possibility of what crypto could offer the world, but on a net basis with all things considered holistically, I'd say it's not worth it. As a society, we need government fiat. And we need banks. And we need regulatory entities with the authority and the power to ensure order and accountability at scale.

People who learned Eric and I wanted to adopt a child often told us stories of adoptions gone wrong. The adopted child incapable of attachment. Who became a drug addict, a runaway, who drained bank accounts, ruined marriages. "I have a friend who adopted," these stories began. "It was a nightmare."... And their stories did make me afraid, convinced me I was the vulnerable one whose life was at risk. Listening, I'd forget the abandoned, the neglected, the children curled on the floor of some empty-cabinet kitchen or crying in some school bathroom stall or shaking in some crib. I'd forget that these children belong to all of us. If they wield knives in the dark or hit heads against walls or refuse to speak, they signal our failure, not theirs.

A gambler must think of three main quantities, stake, odds, and prize. If the prize is very large, a gambler is prepared to risk a big stake. A gambler who risks his all on a single throw stands to gain a great deal. He also stands to lose a great deal, but on average high-stake gamblers are no better and no worse off than other players who play for low winnings with low stakes. An analogous comparison is that between speculative and safe investors on the stock market. In some ways the stock market is a better analogy than a casino, because casinos are deliberately rigged in the bank's favour (which means, strictly, the high-stakes players will on average end up poorer than low-stake players; and low-stake players poorer than those who don't gamble at all.

first. In a financial system that was rapidly generating complicated risks, AIG FP became a huge swallower of those risks. In the early days it must have seemed as if it was being paid to insure events extremely unlikely to occur, as it was. Its success bred imitators: Zurich Re FP, Swiss Re FP, Credit Suisse FP, Gen Re FP. (“Re” stands for Reinsurance.) All of these places were central to what happened in the last two decades; without them, the new risks being created would have had no place to hide and would have remained in full view of bank regulators. All of these places, when the crisis came, would be washed away by the general nausea felt in the presence of complicated financial risks, but there was a moment when their existence seemed cartographically necessary to the financial world. AIG FP was the model for them all.

Well, my dear fellow,” resumed Banks, “a daring climber like you ought to make some ascent in all this great chain.”   “Never!” exclaimed the captain.   “Why not?”   “I have renounced ascents!”   “Since when?”   “Since the day when, after having risked my life twenty times,” answered Captain Hood, “I managed to reach the summit of Vrigel, in the kingdom of Bhootan. It was said that no human being had ever set foot on the top of that peak! There was glory to be gained! my honour was at stake! Well, after no end of narrow squeaks for it, I got to the top, and what did I see but these words cut on a rock: ‘Durand, dentist, 14, Rue Caumartin, Paris!’ I climb no more!”   The honest captain! I must confess that, while telling us of his discomfiture, Hood looked so comical, that it was impossible to help joining him in a hearty laugh.   I

First, when all investors were doing the same thing, he would actively seek to do the opposite. The word stockbrokers use for this approach is contrarian. Everyone wants to be one, but no one is, for the sad reason that most investors are scared of looking foolish. Investors do not fear losing money as much as they fear solitude, by which I mean taking risks that others avoid. When they are caught losing money alone, they have no excuse for their mistake, and most investors, like most people, need excuses. They are, strangely enough, happy to stand on the edge of a precipice as long as they are joined by a few thousand others. But when a market is widely regarded to be in a bad way, even if the problems are illusory, many investors get out. A good example of this was the crisis at the U.S. Farm Credit Corporation. It looked for a moment as if Farm Credit might go bankrupt. Investors stampeded out of Farm Credit bonds because having been warned of the possibility of accident, they couldn’t be seen in the vicinity without endangering their reputations. In an age when failure isn’t allowed, when the U.S. government had rescued firms as remote from the national interest as Chrysler and the Continental Illinois Bank, there was no chance the government would allow the Farm Credit bank to default. The thought of not bailing out an eighty-billion-dollar institution that lent money to America’s distressed farmers was absurd. Institutional investors knew this. That is the point. The people selling Farm Credit bonds for less than they were worth weren’t necessarily stupid. They simply could not be seen holding them. Since Alexander wasn’t constrained by appearances, he sought to exploit people who were.

Well, this was predictable. House Republicans last week acceded to an extension of the Export-Import Bank for at least the next nine months. The Export-Import Bank is far from the worst example of government-business cronyism. I just completed a history of American political corruption and actually had to leave Ex-Im on the cutting room floor. Its cronies are pikers compared with the corporate moguls that take advantage of tax preferences like the G.E. and Apple loopholes. They also cannot hold a candle to the American Medical Association, which is basically free to write the reimbursement rates for Medicare Part B. And nothing compares to Fannie Mae and Freddie Mac from 1991-2008. The two mortgage giants kept the entire D.C. political class bent over a barrel for almost 20 years as its top executives reaped enormous bonuses while putting the broader economy at risk.

The problem wasn’t that the banks were, in and of themselves, critical to the success of the U.S. economy. The problem, he felt certain, was that some gargantuan, unknown dollar amount of credit default swaps had been bought and sold on every one of them. “There’s no limit to the risk in the market,” he said. “A bank with a market capitalization of one billion dollars might have one trillion dollars’ worth of credit default swaps outstanding. No one knows how many there are! And no one knows where they are!” The failure of, say, Citigroup might be economically tolerable. It would trigger losses to Citigroup’s shareholders, bondholders, and employees—but the sums involved were known to all. Citigroup’s failure, however, would also trigger the payoff of a massive bet of unknown dimensions: from people who had sold credit default swaps on Citigroup to those who had bought them.

by blitzing students with information and making the application process as simple as dropping a résumé into a box, by following up relentlessly and promising to inform applicants about job offers in the fall of their senior year—months before firms in most other industries—Wall Street banks had made themselves the obvious destinations for students at top-tier colleges who are confused about their careers, don’t want to lock themselves in to a narrow preprofessional track by going to law or medical school, and are looking to put off the big decisions for two years while they figure things out. Banks, in other words, have become extremely skilled at appealing to the anxieties of overachieving young people and inserting themselves as the solution to those worries. And the irony is that although we think of Wall Street as a risk-loving business, the recruiting process often appeals most to the terrified and insecure.

The Restoration did not so much restore as replace. In restoring the monarchy with King Charles II, it replaced Cromwell's Commonwealth and its Puritan ethos with an almost powerless monarch whose tastes had been formed in France. It replaced the power of the monarchy with the power of a parliamentary system - which was to develop into the two parties, Whigs and Tories - with most of the executive power in the hands of the Prime Minister. Both parties benefited from a system which encouraged social stability rather than opposition. Above all, in systems of thought, the Restoration replaced the probing, exploring, risk-taking intellectual values of the Renaissance. It relied on reason and on facts rather than on speculation. So, in the decades between 1660 and 1700, the basis was set for the growth of a new kind of society. This society was Protestant (apart from the brief reign of the Catholic King James II, 1685-88), middle class, and unthreatened by any repetition of the huge and traumatic upheavals of the first part of the seventeenth century. It is symptomatic that the overthrow of James II in 1688 was called The 'Glorious' or 'Bloodless' Revolution. The 'fever in the blood' which the Renaissance had allowed was now to be contained, subject to reason, and kept under control. With only the brief outburst of Jacobin revolutionary sentiment at the time of the Romantic poets, this was to be the political context in the United Kingdom for two centuries or more. In this context, the concentration of society was on commerce, on respectability, and on institutions. The 'genius of the nation' led to the founding of the Royal Society in 1662 - 'for the improving of Natural Knowledge'. The Royal Society represents the trend towards the institutionalisation of scientific investigation and research in this period. The other highly significant institution, one which was to have considerably more importance in the future, was the Bank of England, founded in 1694.

If you experience feelings of inadequacy and low self-esteem, your poor self-image may keep you from exploring your social self and getting to know others. When fear causes inhibition, your chances of interactive success are severely diminished. Eventually, it will seem easier to avoid the anxiety of socializing than to go ahead and risk failure. The more you avoid these situations, the more you depend on family members for all your emotional support. In my treatment of individuals with social anxiety, these are the two personality profiles that inevitably surface. There is a direct connection between the two: If you avoid doing something that needs to be done, you probably depend on someone else to do it for you. For example, if you habitually avoid going to the bank, or making a phone call, how do these things get accomplished? Ask yourself: “When I avoid these things, who picks up the pieces?” You can’t have avoidance without an element of dependence. Now ask yourself: “If I did it myself, what would the outcome be?” And then: “If no one did it, what would the outcome be?

The common name for government money is fiat money, from the Latin word for decree, order, or authorization. Two important facts must be understood about government money from the outset. First, there is a very large difference between government money redeemable in gold, and irredeemable government money, even if both are run by the government. Under a gold standard, money is gold, and government just assumes a responsibility of minting standard units of the metal or printing paper backed by the gold. The government has no control over the supply of gold in the economy, and people are able to redeem their paper in physical gold at any time, and use other shapes and forms of gold, such as bullion bars and foreign coins, in their dealings with one another. With irredeemable government money, on the other hand, the government's debt and/or paper is used as money, and the government is able to increase its supply as it sees fit. Should anybody use other forms of money for exchange, or should they attempt to create more of the government's money, they run the risk of punishment.

What are they doing?” he whispered. The pinball machine’s scoreboard was full, the bank’s windows fogged. They were so involved- so cofaithed- that they didn’t know we were there. The VW’s face joined, “Are they hurting each other?” I took a breath. “There’s risk involved, because of what they can’t see. Plus the risk of trust. But no-they’re not hurting each other.” The bank whispered something in the pinball machine’s ear and the pinball machine giggled. “What are they saying to each other?” the VW said. “They’re expressing their faith, VW-sharing it.” Just then I heard a rustle, soft at first, then louder…Distracted by other things-the VW, the faith in the trees- I had forgotten to keep the mountain straight in my mind. I had let it go, and now it was changing, reversing itself, growing young: the leaves were turning from brown back to green… THIS was western Massachusetts-unpredictable; a changing moving bitch; a switcher of faces…how could I have many any progress here when mountains were mountains one moment and something else the next; when people were here one day and then GONE?

If Jim was back at the imaginary dinner party, trying to explain what he did for a living, he'd have tried to keep it simple: clearing involved everything that took place between the moment someone started at trade — buying or selling a stock, for instance — and the moment that trade was settled — meaning the stock had officially and legally changed hands. Most people who used online brokerages thought of that transaction as happening instantly; you wanted 10 shares of GME, you hit a button and bought 10 shares of GME, and suddenly 10 shares of GME were in your account. But that's not actually what happened. You hit the Buy button, and Robinhood might find you your shares immediately and put them into your account; but the actual trade took two days to complete, known, for that reason, in financial parlance as 'T+2 clearing.' By this point in the dinner conversation, Jim would have fully expected the other diners' eyes to glaze over; but he would only be just beginning. Once the trade was initiated — once you hit that Buy button on your phone — it was Jim's job to handle everything that happened in that in-between world. First, he had to facilitate finding the opposite partner for the trade — which was where payment for order flow came in, as Robinhood bundled its trades and 'sold' them to a market maker like Citadel. And next, it was the clearing brokerage's job to make sure that transaction was safe and secure. In practice, the way this worked was by 10:00 a.m. each market day, Robinhood had to insure its trade, by making a cash deposit to a federally regulated clearinghouse — something called the Depository Trust & Clearing Corporation, or DTCC. That deposit was based on the volume, type, risk profile, and value of the equities being traded. The riskier the equities — the more likely something might go wrong between the buy and the sell — the higher that deposit might be. Of course, most all of this took place via computers — in 2021, and especially at a place like Robinhood, it was an almost entirely automated system; when customers bought and sold stocks, Jim's computers gave him a recommendation of the sort of deposits he could expect to need to make based on the requirements set down by the SEC and the banking regulators — all simple and tidy, and at the push of a button.

Bollywood's economic workings are more mysterious. It still exists in what was known as the informal and high-risk sector of the Indian economy. Banks rarely invest in Bollywood, where moneylenders are rampant, demanding up to 35 percent interest. The big corporate houses seem no less keen to stay away from filmmaking. A senior executive with the Tatas, one of India's prominent business families, told me, "We went into Bollywood, made one film, lost a lot of money, and got out of it fast," adding that "the place works in ways we couldn't begin to explain to our shareholders." Since only six or seven of the two hundred films made each year earn a profit, the industry has generated little capital of its own. The great studios of the early years of the industry are now defunct. It is outsiders- regular moneylenders, small and big businessmen, real estate people, and, sometimes, mafia dons- who continue to finance new films, and their turnover, given the losses, is rapid. Their motives are mixed: sex, glamour, money laundering, and, more optimistically, profit. They rarely have much to do with the desire to make original, or even competent, films.

The courtship continued through January 2000, causing Musk to postpone his honeymoon with Justine. Michael Moritz, X.com’s primary investor, arranged a meeting of the two camps in his Sand Hill Road office. Thiel got a ride with Musk in his McLaren. “So, what can this car do?” Thiel asked. “Watch this,” Musk replied, pulling into the fast lane and flooring the accelerator. The rear axle broke and the car spun around, hit an embankment, and flew in the air like a flying saucer. Parts of the body shredded. Thiel, a practicing libertarian, was not wearing a seatbelt, but he emerged unscathed. He was able to hitch a ride up to the Sequoia offices. Musk, also unhurt, stayed behind for a half-hour to have his car towed away, then joined the meeting without telling Harris what had happened. Later, Musk was able to laugh and say, “At least it showed Peter I was unafraid of risks.” Says Thiel, “Yeah, I realized he was a bit crazy.” Musk remained resistant to a merger. Even though both companies had about 200,000 customers signed up to make electronic payments on eBay, he believed that X.com was a more valuable company because it offered a broader array of banking services.

shoving a clump of weeds off her face, she clambered to her feet. When she looked at the bank, there stood Lincoln, now in shirtsleeves and barefoot. He stretched out his hand toward her. She crossed her arms over her chest and shook her head. “I know you could get out all on your own.” His voice was tender, and the mirth was gone from his face. “But you don’t have to.” Her anger blew away like the down of a dandelion, and her insides swirled. He was making a point, and he was offering her much more than assistance in getting out of this lake. But did he realize what he was asking her to do? She was the oldest sister. She took responsibility. She handled everything life threw at her, and she didn’t count on anyone’s help. Not even the Lord’s, a small voice whispered inside her. Rubbing her chilled arms, she took one step closer and stopped. “Hannah, I’m giving you the freedom to choose.” His dove-blue eyes were filled with hope. “I won’t push you, but I thought you liked taking risks.” “I do.” “Then take a risk on me.” Hannah stared at Lincoln’s outstretched hand and smiled. She’d take a risk, all right. As soon as his hand clasped around her own, she yanked him with all her might toward the water.

Emma, calm down. I had to know-" I point my finger in his face, almost touching his eyeball. "It's one thing for me to give your permission to look into it. But I'm pretty sure looking into it without my consent is illegal. In fact, I'm pretty sure everything that woman does is illegal. Do you even know what the Mafia is, Galen?" His eyebrows lift in surprise. "She told you who she is? I mean, who she used to be?" I nod. "While you were checking in with Grom. Once in the Mob, always in the Mob, if you ask me. How else would she get all her money? But I guess you wouldn't care about that, since she buys you houses and cars and fake IDs." I snatch my wrist away and turn back toward our hotel. At least, I hope it's our hotel. Galen laughs. "Emma, it's not Rachel's money; it's mine." I whirl on him. "You are a fish. You don't have a job. And I don't think Syrena currency has any of our presidents on it." Now "our" means I'm human again. I wish I could make up my mind. He crosses his arms. "I earn it another way. Walk to the Gulfarium with me, and I'll tell you how." The temptation divides me like a cleaver. I'm one part hissy fit and one part swoon. I have a right to be mad, to press charges, to cut Rachel's hair while she's sleeping. But do I really want to risk the chance that she keeps a gun under her pillow? Do I want to miss the opportunity to scrunch my toes in the sand and listen to Galen's rich voice tell me how a fish came to be wealthy? Nope, I don't. Taking care to ram my shoulder into him, I march past him and hopefully in the right direction. When he catches up to me, his grin threatens the rest of my hissy fit side, so I turn away, fixing my glare on the waves. "I sell stuff to humans," he says. I glance at him. He's looking at me, his expression every bit as expectant as I feel. I hate this little game of ours. Maybe because I'm no good at it. He won't tell me more unless I ask. Curiosity is one of my most incurable flaws-and Galen knows it. Still, I already gave up a perfectly good tantrum for him, so I feel like he owes me. Never mind that he saved my life today. That was so two hours ago. I lift my chin. "Rachel says I'm a millionaire," he says, his little knowing smirk scrubbing my nerves like a Brillo pad. "But for me, it's not about the money. Like you, I have a soft spot for history." Crap, crap, crap. How can he already know me this well? I must be as readable as the alphabet. What's the use? He's going to win, every time.

to look around. At first sight, the apartment was perfectly ordinary. He made a quick circuit of the living room, kitchenette, bathroom, and bedroom. The place was tidy enough, but with a few items strewn here and there, the sort of things that might be left lying around by a busy person—a magazine, a half-finished crossword puzzle, a book left open on a night table. Abby had the usual appliances—an old stove and a humming refrigerator, a microwave oven with an unpronounceable brand name, a thirteen-inch TV on a cheap stand, a boom box near a modest collection of CDs. There were clothes in her bedroom closet and silverware, plates, and pots and pans in her kitchen cabinets. He began to wonder if he’d been unduly suspicious. Maybe Abby Hollister was who she said she was, after all. And he’d taken a considerable risk coming here. If he was caught inside her apartment, all his plans for the evening would be scotched. He would end up in a holding cell facing charges that would send him back to prison for parole violation. All because he’d gotten a bug up his ass about some woman he hardly knew, a stranger who didn’t mean anything. He decided he’d better get the hell out. He was retracing his steps through the living room when he glanced at the magazine tossed on the sofa. Something about it seemed wrong. He moved closer and took a better look. It was People, and the cover showed two celebrities whose recent marriage had already ended in divorce. But on the cover the stars were smiling over a caption that read, Love At Last. He picked up the magazine and studied it in the trickle of light through the filmy curtains. The date was September of last year. He put it down and looked at the end tables flanking the sofa. For the first time he noticed a patina of dust on their surfaces. The apartment hadn’t been cleaned in some time. He went into the kitchen and looked in the refrigerator. It seemed well stocked, but when he opened the carton of milk and sniffed, he discovered water inside—which was just as well, since the milk’s expiration period had ended around the time that the People cover story had been new. Water in the milk carton. Out-of-date magazine on the sofa. Dust everywhere, even coating the kitchen counters. Abby didn’t live here. Nobody did. This apartment was a sham, a shell. It was a dummy address, like the dummy corporations his partner had set up when establishing the overseas bank accounts. It could pass inspection if somebody came to visit, assuming the visitor didn’t look too closely, but it wasn’t meant to be used. Now that he thought about it, the apartment was remarkable for what

THREE BIG MISTAKES. But, of course, it’s never that simple. Before we even got to the third one, we were down and done. As much as our willingness to believe in the constant rise felled us, as much as our eagerness to conquer risk opened us up to more risk, as much as Greenspan stood by as Wall Street turned itself into Las Vegas, there was also Greece, and Iceland, and Nick Leeson, who took down Barings, and Brian Hunter, who tanked Amaranth, and Jérôme Kerviel and every other rogue trader who thought he—and it was always a he—could reverse his gut-churning, self-induced free fall with one swift, lucky strike; it was rising oil prices, global inflation, easy credit, the cowardice of Moody’s, the growing chasm of income inequality, the dot com boom and bust, the Fed’s rejection of regulation, the acceptance of “too big to fail,” the repeal of the Glass-Steagall Act, the feast of subprime debt; it was Clinton and Bush the second and senators vacationing with banking industry lobbyists, the Kobe earthquake, an infatuation with financial innovation, the forgettable Hank Paulson, the delicious hubris of ten, twenty, thirty times leverage, and, at the bottom of it, our own vicious, lingering self-doubt. Or was it our own willful, unbridled self-delusion? Doubt vs. delusion. The flip sides of our last lucky coin. We toss it in the fountain and pray.

What’s an IPO, exactly? A company decides it wants to “float” part of its equity on the public markets, allowing employees and founders to sell private shares to pay them off for years of service, as well as sell shares out of the corporate treasury to have some money in the bank. Large investment banks (such as my former employer Goldman Sachs) form what’s called a “syndicate” (“mafia” might be a better term) wherein they offer to effectively buy those shares from Facebook, and then sell them into the capital markets, usually by pushing it via their sales force onto wealthy clients or institutional investors. That syndicate either guarantees a price (“firm commitment”) or promises to get the best price it can (“best effort”). In the former case, the bank is taking real execution risk, and stands to lose money if it doesn’t engineer a “pop” in the stock on opening day. To mitigate the risk, the bank convinces the offering company to expect a lower price, while simultaneously jacking up what real price the market will bear with a zealous sales pitch to the market’s deepest pockets. Thus, it is absolutely jejune to think that a stock’s rise on opening day is due to clamoring and unexpected interest. Similar to Captain Renault in Casablanca, Wall Street bankers are shocked—shocked!—that there should be such a large and positive price dislocation in the market they just rigged.

When everyone is seated, Galen uses a pot holder to remove the lid from the huge speckled pan in the center of the table. And I almost upchuck. Fish. Crabs. And...is that squid hair? Before I can think of a polite version of the truth-I'd rather eat my own pinky finger than seafood-Galen plops the biggest piece of fish on my plate, then scoops a mixture of crabmeat and scallops on top of it. As the steam wafts its way to my nose, my chances of staying polite dwindle. The only think I can think of is to make it look like I'm hiccupping instead of gagging. What did I smell earlier that almost had me salivating? It couldn't have been this. I fork the fillet and twist, but it feels like twisting my own gut. Mush it, dice it, mix it all up. No matter what I do, how it looks, I can't bring it near my mouth. A promise is a promise, dream or no dream. Even if real fish didn't save me in Granny's pond, the fake ones my imagination conjured up sure comforted me until help arrived. And now I'm expected to eat their cousins? No can do. I set the fork down and sip some water. I sense Galen is watching. Out of my peripheral, I see the others shoveling the chum into their faces. But not Galen. He sits still, head tilted, waiting for me to take a bite first. Of all the times to be a gentleman! What happened to the guy who sprawled me over his lap like a three-year-old just a few minutes ago? Still, I can't do it. And they don't even have a dog for me to feed under the table, which used to be my go-to plan at Chloe's grandmother's house. One time Chloe even started a food fight to get me out of it. I glance around the table, but Rayna's the only person I'd aim this slop at. Plus, I'd risk getting the stuff on me, which is almost as bad as in me. Galen nudges me with his elbow. "Aren't you hungry? You're not feeling bad again, are you?" This gets the others' attention. The commotion of eating stops. Everyone stares. Rayna, irritated that her gluttony has been interrupted. Toraf smirking like I've done something funny. Galen's mom wearing the same concerned look he is. Can I lie? Should I lie? What if I'm invited over again, and they fix seafood because I lied about it just this once? Telling Galen my head hurts doesn't get me out of future seafood buffets. And telling him I'm not hungry would be pointless since my stomach keeps gurgling like an emptying drain. No, I can't lie. Not if I ever want to come back here. Which I do. I sigh and set the fork down. "I hate seafood," I tell him. Toraf's sudden cough startles me. The sound of him choking reminds me of a cat struggling with a hair ball. I train my eyes on Galen, who has stiffened to a near statue. Jeez, is this all his mom knows how to make? Or have I just shunned the Forza family's prize-winning recipe for grouper? "You...you mean you don't like this kind of fish, Emma?" Galen says diplomatically. I desperately want to nod, to say, "Yes, that's it, not this kind of fish"-but that doesn't get me out of eating the crabmeat-and-scallop mountain on my plate. I shake my head. "No. Not just this kind of fish. I hate it all. I can't eat any of it. Can hardly stand to smell it." Way to go for the jugular there, stupid! Couldn't I just say I don't care for it? Did I have to say I hate it? Hate even the smell of it? And why am I blushing? It's not a crime to gag on seafood. And for God's sakes, I won't eat anything that still has its eyeballs.

Oh, it’s perfectly safe to handle if somebody else has triggered the curse and you took it from their still-smoking body.” Eve paused. “Or if they sold it to you.” “You bought it, didn’t you?” Imp walked towards her. “Didn’t you?” “I think so. I may have screwed up that side of things,” Eve admitted. “It’s unclear.” “What’s unclear?” “It was up for auction: obvs, right? But it’s not clear that the person auctioning the location of the manuscript actually owned what they were selling, that’s the thing. Also, ancient death spells and intellectual property law don’t always play nice together. I, uh, my boss has a standard procedure he has me follow in cases of handling blackmail and extortion. We pay the ransom, then once we’ve destroyed the threat I repossess the payment from the blackmailer’s bank account. Via a Transnistrian mafiya underwriter—” This time it was Wendy who interrupted: “The Russian mafiya has underwriters?” “Transnistrian, please, and yes, criminal business models are inherently expensive because they have to pay for their own guard labor—there are no tax overheads, but no police protection for carrying out business, either—so of course they evolved parallel structures for risk management, mostly by embedding the risk in a concrete slab and dumping it in the harbor—anyway. At what stage does the book consider itself to have been legitimately acquired? And by whom? Is it safe for you to handle it, as my employee? What about as an independent freelance contractor not subject to the HMRC IR35 regulations? Am I an acceptable proxy for Bigge Enterprises, a Scottish Limited Liability Partnership domiciled in the Channel Islands, in the view of a particularly dim-witted nineteenth-century death spell attached to a codex bound in human skin by a mad inquisitor? It’s like digital rights management magic, only worse.

According to Bartholomew, an important goal of St. Louis zoning was to prevent movement into 'finer residential districts . . . by colored people.' He noted that without a previous zoning law, such neighborhoods have become run-down, 'where values have depreciated, homes are either vacant or occupied by color people.' The survey Bartholomew supervised before drafting the zoning ordinance listed the race of each building's occupants. Bartholomew attempted to estimate where African Americans might encroach so the commission could respond with restrictions to control their spread. The St. Louis zoning ordinance was eventually adopted in 1919, two years after the Supreme Court's Buchanan ruling banned racial assignments; with no reference to race, the ordinance pretended to be in compliance. Guided by Bartholomew's survey, it designated land for future industrial development if it was in or adjacent to neighborhoods with substantial African American populations. Once such rules were in force, plan commission meetings were consumed with requests for variances. Race was frequently a factor. For example, on meeting in 1919 debated a proposal to reclassify a single-family property from first-residential to commercial because the area to the south had been 'invaded by negroes.' Bartholomew persuaded the commission members to deny the variance because, he said, keeping the first-residential designation would preserve homes in the area as unaffordable to African Americans and thus stop the encroachment. On other occasions, the commission changed an area's zoning from residential to industrial if African American families had begun to move into it. In 1927, violating its normal policy, the commission authorized a park and playground in an industrial, not residential, area in hopes that this would draw African American families to seek housing nearby. Similar decision making continued through the middle of the twentieth century. In a 1942 meeting, commissioners explained they were zoning an area in a commercial strip as multifamily because it could then 'develop into a favorable dwelling district for Colored people. In 1948, commissioners explained they were designating a U-shaped industrial zone to create a buffer between African Americans inside the U and whites outside. In addition to promoting segregation, zoning decisions contributed to degrading St. Louis's African American neighborhoods into slums. Not only were these neighborhoods zoned to permit industry, even polluting industry, but the plan commission permitted taverns, liquor stores, nightclubs, and houses of prostitution to open in African American neighborhoods but prohibited these as zoning violations in neighborhoods where whites lived. Residences in single-family districts could not legally be subdivided, but those in industrial districts could be, and with African Americans restricted from all but a few neighborhoods, rooming houses sprang up to accommodate the overcrowded population. Later in the twentieth century, when the Federal Housing Administration (FHA) developed the insure amortized mortgage as a way to promote homeownership nationwide, these zoning practices rendered African Americans ineligible for such mortgages because banks and the FHA considered the existence of nearby rooming houses, commercial development, or industry to create risk to the property value of single-family areas. Without such mortgages, the effective cost of African American housing was greater than that of similar housing in white neighborhoods, leaving owners with fewer resources for upkeep. African American homes were then more likely to deteriorate, reinforcing their neighborhoods' slum conditions.

As I saw it, there was a 75 percent chance the Fed’s efforts would fall short and the economy would move into failure; a 20 percent chance it would initially succeed at stimulating the economy but still ultimately fail; and a 5 percent chance it would provide enough stimulus to save the economy but trigger hyperinflation. To hedge against the worst possibilities, I bought gold and T-bill futures as a spread against eurodollars, which was a limited-risk way of betting on credit problems increasing. I was dead wrong. After a delay, the economy responded to the Fed’s efforts, rebounding in a noninflationary way. In other words, inflation fell while growth accelerated. The stock market began a big bull run, and over the next eighteen years the U.S. economy enjoyed the greatest noninflationary growth period in its history. How was that possible? Eventually, I figured it out. As money poured out of these borrower countries and into the U.S., it changed everything. It drove the dollar up, which produced deflationary pressures in the U.S., which allowed the Fed to ease interest rates without raising inflation. This fueled a boom. The banks were protected both because the Federal Reserve loaned them cash and the creditors’ committees and international financial restructuring organizations such as the International Monetary Fund (IMF) and the Bank for International Settlements arranged things so that the debtor nations could pay their debt service from new loans. That way everyone could pretend everything was fine and write down those loans over many years. My experience over this period was like a series of blows to the head with a baseball bat. Being so wrong—and especially so publicly wrong—was incredibly humbling and cost me just about everything I had built at Bridgewater. I saw that I had been an arrogant jerk who was totally confident in a totally incorrect view. So there I was after eight years in business, with nothing to show for it. Though I’d been right much more than I’d been wrong, I was all the way back to square one.

However we decide to apportion the credit for our improved life spans, the bottom line is that nearly all of us are better able today to resist the contagions and afflictions that commonly sickened our great-grandparents, while having massively better medical care to call on when we need it. In short, we have never had it so good. Or at least we have never had it so good if we are reasonably well-off. If there is one thing that should alarm and concern us today, it is how unequally the benefits of the last century have been shared. British life expectancies might have soared overall, but as John Lanchester noted in an essay in the London Review of Books in 2017, males in the East End of Glasgow today have a life expectancy of just fifty-four years—nine years less than a man in India. In exactly the same way, a thirty-year-old black male in Harlem, New York, is at much greater risk of dying than a thirty-year-old male Bangladeshi from stroke, heart disease, cancer, or diabetes. Climb aboard a bus or subway train in almost any large city in the Western world and you can experience similar vast disparities with a short journey. In Paris, travel five stops on the Metro’s B line from Port-Royal to La Plaine—Stade de France and you will find yourself among people who have an 82 percent greater chance of dying in a given year than those just down the line. In London, life expectancy drops reliably by one year for every two stops traveled eastward from Westminster on the District Line of the Underground. In St. Louis, Missouri, make a twenty-minute drive from prosperous Clayton to the inner-city Jeff-Vander-Lou neighborhood and life expectancy drops by one year for every minute of the journey, a little over two years for every mile. Two things can be said with confidence about life expectancy in the world today. One is that it is really helpful to be rich. If you are middle-aged, exceptionally well-off, and from almost any high-income nation, the chances are excellent that you will live into your late eighties. Someone who is otherwise identical to you but poor—exercises as devotedly, sleeps as many hours, eats a similarly healthy diet, but just has less money in the bank—can expect to die between ten and fifteen years sooner. That’s a lot of difference for an equivalent lifestyle, and no one is sure how to account for it.

Conservatism" in America's politics means "Let's keep the niggers in their place." And "liberalism" means "Let's keep the knee-grows in their place-but tell them we'll treat them a little better; let's fool them more, with more promises." With these choices, I felt that the American black man only needed to choose which one to be eaten by, the "liberal" fox or the "conservative" wolf-because both of them would eat him. I didn't go for Goldwater any more than for Johnson-except that in a wolf's den, I'd always known exactly where I stood; I'd watch the dangerous wolf closer than I would the smooth, sly fox. The wolf's very growling would keep me alert and fighting him to survive, whereas I might be lulled and fooled by the tricky fox. I'll give you an illustration of the fox. When the assassination in Dallas made Johnson President, who was the first person he called for? It was for his best friend, "Dicky"-Richard Russell of Georgia. Civil rights was "a moral issue," Johnson was declaring to everybody-while his best friend was the Southern racist who led the civil rights opposition. How would some sheriff sound, declaring himself so against bank robbery-and Jesse James his best friend? How would some sheriff sound, declaring himself so against bank robbery-and Jesse James his best friend? Goldwater as a man, I respected for speaking out his true convictions-something rarely done in politics today. He wasn't whispering to racists and smiling at integrationists. I felt Goldwater wouldn't have risked his unpopular stand without conviction. He flatly told black men he wasn't for them-and there is this to consider: always, the black people have advanced further when they have seen they had to rise up against a system that they clearly saw was outright against them. Under the steady lullabies sung by foxy liberals, the Northern Negro became a beggar. But the Southern Negro, facing the honestly snarling white man, rose up to battle that white man for his freedom-long before it happened in the North. Anyway, I didn't feel that Goldwater was any better for black men than Johnson, or vice-versa. I wasn't in the United States at election time, but if I had been, I wouldn't have put myself in the position of voting for either candidate for the Presidency, or of recommending to any black man to do so. It has turned out that it's Johnson in the White House-and black votes were a major factor in his winning as decisively as he wanted to. If it had been Goldwater, all I am saying is that the black people would at least have known they were dealing with an honestly growling wolf, rather than a fox who could have them half-digested before they even knew what was happening.