Speculators, Mount Up!
Every once in a while my friend Jeffery comes up with an idea that surprises me in its intelligence. Granted, his “I’m voting for Ron Paul because the gold standard is shiny!” moments tend to overshadow his more lucid thoughts but I’m the type of guy who gives credit where credit is due. So, when Jeff advocates for the one-year contract, I have to applaud his chutzpah. Sure, it will never happen for a legion of reasons but that doesn’t mean it’s a bad idea. Unlike this:
Just because something is a good idea doesn’t mean it’s right, though. For instance, paying less money for gas seems like a good idea to most of us. And oil speculation seems like a bad idea. But if you take a look at this and this, you might just start to realize that cheap gas doesn’t make so much sense and oil speculation might not be so bad.
Just like traders buying “future” barrels of oil, baseball players’ salaries are simple speculation. You pay A-Rod a quarter billion dollars because you think he’s going to be able to continue putting up the same numbers for 10 years. Same goes for Pujols and all these other guys with monster salaries. You hope that by giving an extended contract, you’re actually avoiding paying less than what the market will say that player is worth and you’ll wind up with a profit. That’s pretty much “speculation” in its most basic form. And just like buying future oil, it’s not necessarily a bad thing.
For the rest of us, the options are a little more limited. I don’t have major league skills. I’m never going to make a million dollars because of my ability to hit a ball or throw a ball or pretty much do anything with a ball. But that doesn’t mean I’m not going to speculate. I’ve even got my eyes on a pretty spectacular opportunity. Anyone want to throw in on an asteroid with me?