Many people in our society invest in bonds. Perhaps you, reading this article, have invested in bonds at least once and are still investing now. Bank deposits are a form of bonds, just not labeled as ‘bonds.’ When you deposit your money in a bank, the money isn’t considered bank money. Interest is paid because the money isn’t withdrawn immediately. When you withdraw your deposited money, the bank must return the principal plus interest. This is essentially a bond. However, the only reason this differs from bonds as an investment asset is that these bank deposits are not traded on the market. If bank deposits were traded publicly, the interest rate would be evaluated in comparison with other deposits, even if the principal remains unchanged. Valuation reflects opportunity cost. This is the transaction value of bonds. When goods or assets are traded in the market, their value is re-evaluated. The core of value is comparison, and the tool for valuation is opportunity cost. That’s why CEOs...
A balloon will pop when placed atop a single pointed needle. However, if you drive the needle with multiple thumbtacks arranged like a rug, the balloon won’t burst. This illustrates that the impact of sharpness can depend on context. Even if we face inner turmoil, the way we position our challenges and the situations we create can transform those difficulties into connections rather than sources of pain. The key lies in how we manage the distribution of sharpness rather than the sharpness itself. - Joseph’s “just my thoughts”