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Re: questions about audit and budget processes

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On 03/03/16 20:47, Jeroen Dekkers wrote:
> At Thu, 3 Mar 2016 19:29:32 +0100,
> Daniel Pocock wrote:
>>
>> On 03/03/16 19:16, martin f krafft wrote:
>>> also sprach Daniel Pocock <daniel@pocock.pro> [2016-03-03 15:18
>>> +0100]:
>>>> Why wouldn't people also potentially volunteer some time for 
>>>> portfolio management?
>>>
>>> I'd consider this a really bad idea. Portfolio management is
>>> perhaps *the* profession that benefits the most from a professional
>>> (or at least one of them), contract-based separation between client
>>> and actor, with extrinsic motivation of the actor. Even that's 
>>> impossible to properly tie down, but I certainly would never want
>>> to see some people point fingers at others and claiming that they
>>> have lost us money because the markets didn't do as they'd have
>>> hoped.
>>>
>>> Would these volunteers invest in Microsoft? Google? Apple? Nestlé? 
>>> Weapons manufacturers? Companies that exploit resources?
>>>
>>
>> That's not fair, you shouldn't make a list like that without including
>> tobacco companies.
>>
>> Anyhow, I understand the point you are making, I'd be interested to
>> know if many other people feel the same reluctance or have other opinions.
> 
> Instead of managing a portfolio, we can just choose one or a few ETF's
> that track global indices such as the MSCI World Index and the STOXX
> Global 1800. Then you can blame nobody for picking the wrong
> stock. Those still can go down, but the long term gross return is
> higher than the standard interest rates on savings. We indirectly do
> invest in corporations people might consider evil, but the money on a
> savings account can also be lent out to an evil corporation by the
> bank.
> 


Well, that last bit is not quite correct: banks don't just lend out the
money people deposit, they lend it out several times over[1].

E.g. if Debian has $250k in the bank, the bank can lend out $1 million
or more to somebody else and the interest they collect on that $1
million loan is many multiples of the interest they give back to Debian.
 For better or worse, that is the wonder of the fractional reserve system.

Regards,

Daniel

1. https://en.wikipedia.org/wiki/Fractional-reserve_banking#Money_multiplier

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questions about audit and budget processes Daniel Pocock <daniel@pocock.pro> - 2016-03-02 09:40 +0100
  Re: questions about audit and budget processes Paul Wise <pabs@debian.org> - 2016-03-02 09:50 +0100
    Re: questions about audit and budget processes Daniel Pocock <daniel@pocock.pro> - 2016-03-02 10:00 +0100
      Re: questions about audit and budget processes Paul Wise <pabs@debian.org> - 2016-03-02 10:10 +0100
        Re: questions about audit and budget processes Daniel Pocock <daniel@pocock.pro> - 2016-03-02 10:30 +0100
  Re: questions about audit and budget processes martin f krafft <madduck@debian.org> - 2016-03-03 13:30 +0100
    Re: questions about audit and budget processes Martin Wuertele <martin@wuertele.net> - 2016-03-03 14:40 +0100
      Re: questions about audit and budget processes martin f krafft <madduck@debian.org> - 2016-03-03 19:10 +0100
    Re: questions about audit and budget processes Daniel Pocock <daniel@pocock.pro> - 2016-03-03 15:20 +0100
      Re: questions about audit and budget processes martin f krafft <madduck@debian.org> - 2016-03-03 19:20 +0100
        Re: questions about audit and budget processes Daniel Pocock <daniel@pocock.pro> - 2016-03-03 19:30 +0100
          Re: questions about audit and budget processes Jeroen Dekkers <jeroen@dekkers.ch> - 2016-03-03 21:30 +0100
            Re: questions about audit and budget processes Daniel Pocock <daniel@pocock.pro> - 2016-03-03 22:00 +0100

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