> I'm pretty sure—or at least I hope—that Red Auerbach was kidding when he told a gym full of kids to cheat to get ahead.
He didn't tell them to cheat. He told them that to gain competitive advantage you cheat. Games are mostly random so you can get ahead without getting competitive advantage. And you don't even need to get ahead to have almost all benefits of playing the game or even some other benefits that you can't get when you have an advantage.
I think that attitude towards cheaters is pretty much an american (maybe british?) cultural thing. Lot's of people were successfully taught to be honest, and if they can't be honest to defend the ideal of honesty by teaching honesty and never admitting their dishonesty. People who are honest about their dishonesty meet exasperation and disbelieve.
> If a company sold hedge funds an early look at their earnings, it'd be insider trading. But when a third-party like Business Wire sells hedge funds an early, albeit split-second, look at corporate earnings, it's perfectly legal. It's nuts.
Nuts is the fact that insider trading is illegal. It's unenforceable idea of how to make intrinsically unfair game appear sort of fair. It comes from the fact that shares are not as attractive as they need to be on their own. Possessing part of some company and getting dividends when the company decides to pay them is not incentive enough to shell out your cash and give it to the company that needs the cash to develop.
Since people love to participate in lotteries (before taxes it was the way money was gathered for expensive projects, people were just voluntarily were giving their money away in hopes of winning the big prize) they attached sort of casino to the idea of shares. The game is mostly: guess future ratio of supply and demand for pieces of paper. But people don't like to play in the casinos that are known to rig the games and despite the fact that price is random as it depends on so many different pieces of information some information can have some predictable influence. So casino (exchange and companies) pinky swear to prevent anyone from acting on the knowledge that gamers didn't have chance to familiarize themselves with. It works. I makes the game look fair. Of course insider still trading exists because you can't tell it apart from luck if you can't trace where the information leaked. And you can do that only rarely.
He didn't tell them to cheat. He told them that to gain competitive advantage you cheat. Games are mostly random so you can get ahead without getting competitive advantage. And you don't even need to get ahead to have almost all benefits of playing the game or even some other benefits that you can't get when you have an advantage.
I think that attitude towards cheaters is pretty much an american (maybe british?) cultural thing. Lot's of people were successfully taught to be honest, and if they can't be honest to defend the ideal of honesty by teaching honesty and never admitting their dishonesty. People who are honest about their dishonesty meet exasperation and disbelieve.
> If a company sold hedge funds an early look at their earnings, it'd be insider trading. But when a third-party like Business Wire sells hedge funds an early, albeit split-second, look at corporate earnings, it's perfectly legal. It's nuts.
Nuts is the fact that insider trading is illegal. It's unenforceable idea of how to make intrinsically unfair game appear sort of fair. It comes from the fact that shares are not as attractive as they need to be on their own. Possessing part of some company and getting dividends when the company decides to pay them is not incentive enough to shell out your cash and give it to the company that needs the cash to develop.
Since people love to participate in lotteries (before taxes it was the way money was gathered for expensive projects, people were just voluntarily were giving their money away in hopes of winning the big prize) they attached sort of casino to the idea of shares. The game is mostly: guess future ratio of supply and demand for pieces of paper. But people don't like to play in the casinos that are known to rig the games and despite the fact that price is random as it depends on so many different pieces of information some information can have some predictable influence. So casino (exchange and companies) pinky swear to prevent anyone from acting on the knowledge that gamers didn't have chance to familiarize themselves with. It works. I makes the game look fair. Of course insider still trading exists because you can't tell it apart from luck if you can't trace where the information leaked. And you can do that only rarely.