Thursday, January 21, 2010

Test Day


In about an hour, I will face the first test of the worst/hardest class I have encountered during my education at the University of Florida. That class... is Structures.

O sure, Structures, sounds like fun. Maybe you'll build something. NO! You won't build anything. And, I'll try not to criticize the teacher on his abilities, but man, I don't get much by sitting in that class. Also, I'd think that after 7 editions they would learn how to make an easier to understand book. Oi.

So go study Garrett! Print out your materials to prepare for the test! Yeah, you got me there. I should be doing that...
...
...
... Ok done.

Now what else is going on in my life?

Let's see, Mom just checked out my blog, and of course was worried about the title. O NO WHAT WILL MY EMPLOYERS THINK!? This is not my business blog, and even if it was I'd turn on privacy for any articles I don't want people to read. Then again, if she even wiki-ed the title she would understand the interesting problem that it's about. Not that this blog has a lot to do with moral hazards, but the wordplay isn't so bad I think. Amoral has to do with not believing in the existence of morality, which could be hazardous as I believe morals play a big role in life.

Moral hazards occur when a party with more information than another party acts in such a way to take advantage of that other party. In a simple example, this could be when I leave my car in a crime ridden area, doors unlocked, practically expecting to have my car jacked. My insurance will take care of it, or they should at least. A less obvious thing that we have been seeing of a lot is the financial side of this problem.

Straight from Wikipedia: Financial bail-outs of lending institutions by governments, central banks or other institutions can encourage risky lending in the future, if those that take the risks come to believe that they will not have to carry the full burden of losses. Lending institutions need to take risks by making loans, and usually the most risky loans have the potential for making the highest return. So called "too big to fail" lending institutions can make risky loans that will pay handsomely if the investment turns out well but will be bailed out by the taxpayer if the investment turns out badly.

Maybe I should just change the name of my blog to bastard strategy. It's practically synonymous. Mom would love that one too.


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