A world without insurance – Part 1 – The house always wins.
April 22, 2010
So what exactly constitutes gambling. One way to explain it is placing a bet on a future event. It is the same thing you do when you purchase insurance. Your placing your bet on a future event that may or may not happen. In this case the house is the insurance company. Who has the statistics to make sure they place the odds in their favour. Without the house advantage the insurance company could not stay in business let alone be able pay all it’s employees. And like casinos, insurance companies have huge buildings with loads of employees.
Most people can recognize that gambling is not a wise use of there money. Just based on the odds alone it would figure that it’s not a responsible use of money. It’s a way of trying to getting ahead without providing any real substance. Yes you can come out ahead but the house always has the better odds. This is what allows the house to stay in business. And if your winning to much you might be monitored carefully and seen as a possible cheat.
The biggest threat to the casinos and insurance companies are the big winners. So be careful, if your too savvy or you try to tilt the rules in your favour you are going to be dealt with suspicion if not outright resistance. If you get a big pay-off you must realize your threatening important profits of the house. You will likely be meat by the casino security guards or insurance lawyers. There to protect you of course.
