These big paydays are based on performance. For capitalism, it's great these guys are taking a piece of the upside and saying we took the risk so we get the reward.
Think about it- the King James Bible took religion out of the hands of the high priests and put it in to the hands of the people. An entire generation became literate just to be able to read the King James version of the Bible.
By the way, I love paradoxes. They usually mean someone doesn't understand what's really going on and you can invest in things other people can't know. I start salivating when I hear that word paradox.
Wealth really is a never-ending process. So is running money. You can't just walk away and ask about the meaning of life.
You can't ever forget how precarious and humbling running money really is.
But I was confused. Here we were scrambling around looking under rocks for great long-term investments, and every other hedge fund, or so it seemed, was doing some funny hedge of cheap yen money and T-bills. That's investing?
But then I remembered how crass it is to talk money or stocks with university types.
Cheap power helped create a new market that didn't exist previously.
In fact, maybe Metcalfe's Law is the formula for Doug Engelbart's scaling of human knowledge, just as Watt's steam engine scaled human power.
High elasticity means that unit output goes up more than prices went down, so you get a growth business.
But the stock market is not 1: 1-it is not a zero sum game. So those deaf, dumb and blind economists can't find the capital flows.
I think what I learned is that wealth comes not just from taking risk but from constantly taking risks.