casinos and cruise ships think they are making bank off of mathematically guaranteed covered calls but they're more like naked calls b/c the assets tend to be financed through credit. (aka banks who take 1 dollar and lend out 10)
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effectively this means that no one is taking responsibility for acts of God that are powerful enough to shock the entire credit system. it is just punted higher and higher until it reaches an authority figure that HAS to act but can't really do much like the fed.
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unlike regular insurance which have the humility to exclude things that are outside their statistics model (earthquakes & other acts of God) money management always avoids taking responsibility for complete loss of principal.
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this is good in a sense. the annoying friend who asks for investment advice so that they can benefit from upside and blame someone for downside is just that. someone who isn't taking responsibility for themself and asking someone else to act as Parent.
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the only way to avoid systemic failure when powerful load bearing columns crumble b/c they are asked to take on the weight of taking responsibility for God is for each individual to take such responsibility themselves and not punt it to an authority figure or a scapegoat.
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primarily this involves making peace with death, the scariest of acts of God. financial failure and realization of egoic impotence are mere shadows of this core fear. this is the 'everyone should be entrepreneurs' argument.
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in practice though it is less about spending years meditating in a cave realizing oneness with the divinity of the universe and more about taking risk and responsibility.
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even in spiritual contexts this risk exists. it's about thinking for yourself, hitting dead ends, turning back, and trying another route, all without blaming someone for the dead end, wanting a cheat sheet for the answer, following a pack, or getting frustrated at the process.
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the cave is just a metaphor for avoiding the social pressures and desire to recognition and popularity that prevent this individuation. yet often it becomes an instagram worthy moment to be traveled to on group excursions and shared to everyone.
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ok, no idea how i ended up here. i started off with wanting to explain some intuition around exposure to positive vs negative black swans...
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End of conversation
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