Too many companies are losing huge sums of money on mindless financial risk taking, says Chris Mayer. Even when it has nothing to do with their core business. Chris says this should underline the importance of understanding exactly what you are investing in.

It’s abundantly clear now that too much borrowing and spending in recent years is at the core of the current economic crisis. But what perplexes Bill Bonner is that government policy still assumes that more of the same is the only way to get us out of this mess. And Wall Street is only too happy to go along with it…