…life-cycle account automatically moves an investor from higher risk holdings such as stocks into lower risk holdings such as bonds. A professional investment counselor might advise you do just that…

…Analytically this net savings to the country seems obvious. Insurance companies are institutions that take on risk from individuals, spend valuable resources to understand exactly how much risk they are…

…So boards began using equity-based pay. This had several effects: It replaced risk-free income with risky income, which entails increasing expected pay to compensate for the greater risk premium. By…

…reserves and retires bonds, it’s taking on market risk/reward, replacing it with absolutely nonvolatile, risk/reward-free assets (at least in nominal terms). It’s removing leverage and volatility from the banking system….

Previously, I had written on Fair Market Value and its use by the CBO’s Douglas Elmendorf to rate the risk of Student Loans as advocated by both The New America…

…not a good idea. Another is to balance the risk hating sovereign wealth funds with a US Federal risk loving sovereign wealth fund which invests in alllll risky assets driving…

…even workers have risk by taking an initiative to be creative. As well, regular taxpayers pay taxes as an “investment” with an implicit risk. Taxpayers are then due a return…

…lopsided allocations or artificially low prices. Finally, politicians are inherently short-sighted. They prefer the risk of a shortage tomorrow to the risk that reform will cost them votes today. Water…

…can cause voter confusion and/or electoral chaos? Or is it that courts must weigh such risks? How should such risks be weighed against the risks of voter disenfranchisement? Or is…

…the US Treasury bearing risk. This can be efficient given its unique risk bearing capacity. But another issue is dynamic consistency again. As noted by Schliefer and Summers, the possibility…