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Sunday, December 30, 2012


There is a real dilemma, which describes polar opposite scenarios with no easy answers in sight facing our society. At one end of the scale there exists the hedge fund industry with assets reportedly managed by such funds totaling $1.92 trillion by the end of 2010, which was up by 20% from the previous year. To better place this in proper perspective, these assets increased a staggering one hundred and fifty ($150) billion in the fourth (4th) quarter of 2010 alone. The dilemma that exists is the average of 8% to 9% unemployment figure that existed even during the referenced year and still exists while some boldly claim in front of millions that things are on the “right’ track and that “no-one else could have done better” given the existing conditions. In the face of the desperation conditions many have experienced as a result of the worst financial crisis in almost a century many believed this to be true.
The point being made here is this, why is it not possible for some individual to devise a method to make these two scenarios benefit each other? A method is possible to solve most dilemmas, however, the biggest drawback is the type of mindset that has overtaken society (like a controlling vine), which has deluded us to become seduced with INSTANT “everything”. As a result, its difficult to expect anyone to wait for years for returns on their investments instead of the average of 10.5% annual return on investment of these types of investment vehicles, not even taking into account the average gain of 15% annual return for the Standard & Poor’s (S & P) 500 index and the 19% return on the average stock mutual fund. In some individual cases an increase of 590% in a single year is possible, (as occurred by the individual who correctly bet that the subprime mortgage market was about to implode and personally made four (4) billion in the process in 2007 (as reported in that popular daily/weekend Business Publication from January 28, 2010 (A1/2).
It is because of the “meism” of our society exemplified best by the dearth of “reality” television programs with the promise of INSTANT stardom for “one” successful contestant, etc. explains best why these two (2) can’t be successfully devised to be beneficial for each other because Fund Manager wouldn’t be able to realize their billion-dollar/year average returns and would lose their reputations as being elite Managers. After all, why should anyone have to wait to achieve “success” in the age of: instant food, instant beverages, instant accomplishments, instant identities, instant qualifications, instant access, instant mail, instant communications, instant credit, instant elections, instant crops, instant stardom, instant military records, instant cures and even instant families may now also be available.
Clearly, the investment resources are available to address one part of the dilemma, however, the real question that exists is, is the will available to make these two (2) scenarios work for each other? Our society may be too far down the INSTANT road to be able to successfully tackle this scenario without some unplanned event of such a magnitude bringing about conditions to “force” society to rethink its values in the conundrum we are facing. However, there is always a chance for real CHANGE to turn the tide!

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