It is easy to mistaken risk for uncertainty. They are different things.
Risk can be covered by institutional arrangement, but not uncertainty.
There may be risk to the system, but uncertainty prevails for the individual.
While the recession may present a risk to the economy, the individual faces grave uncertainty over his economic future.
A recession may present a great opportunity for the economy to renew itself, the same recession may be the end of the economic fortune of one individual - but an opportunity for great fortune for another.
In the simple case of insurance, for example, where statistical theory is applied, the probability of a person being killed by a car while crossing a road death may be 10% for the whole population. But the probability of a particular person being knocked down by a car and die is zero or one to the person.
The insurance industry takes a immortal view, while an individual takes a personal view.
In economic life, an individual faces grave uncertainty over his future. He fears he has no food and no place to stay in future - this is the worry of the modern person.
He fears the unknown - that which will happen in the next moment or the moment after next.
It is this great fear of the unknown that individuals strive to store up food and shelter for the future - which in the modern money-using exchange markets, the item most desired by individuals is called "asset."
It used to be called "money" when money was an asset.
With the debasement of money by modern policy makers, particularly central bankers, through the pursuit of loose monetary policy or quantitative easing, money has become a useless commodity.
New items come up in the minds of the people which they think are assets - assets are things that people treasure but which they cannot consume and they end up sitting on them in the hope of releasing their utility some time in the future.
One can therefore go through any range of durable objects. Do not laugh at the ancients over stone money or shells. Modern people treasure even computer numbers stored in certain places.
But every durable object that has been considered to be valuable by individual human beings, when the supply is unlimited has been shown to be rendered useless in value - by the very simple operation of the market supply and market demand.
Even houses, the Japanese has shown, can be a liability. Houses are, after all, spaces created by partitions called walls which people put around themselves when they are fed up with society or when they fear animals (as animals take on human shapes).
In those spaces called houses, like-minded animals of all kinds live with their own kinds - to reduce uncertainty - because they know how their kind behave or will behave in future under various stereotyped scenarios - until the pet dog chews up the human baby.
So, in the face of uncertainty which naturally exists in the minds of human beings as a result of the creation of the concept called time, individual human beings have been acting very strangely - to waste time in the present over unncessary things in order to secure time in the future that does not exist.
The only uncertainty in human society is human behaviour under varying conditions. If your friend will not feed you when you have no money and are hungry, the uncertainty is that of the friendship - not the future which does not exist.
You accumulate riches because you have no friends who will take care of you when you have nothing.
The society with the greatest amount of artificial man-made market-oriented assets is the most friendless society - because one does not have to be nice and make friends.
Poor people have to be friendly to each other because they need each other all the time - who knows who will need who at this moment or the next.
The current global economic recession is the result of too much supply of assets which now do not have value in the market - because of oversupply.
The answer is to reduce the oversupply by downsizing the industries that are overproducing and move human and other natural resources in areas of activities for which there could be greater appreciation by fellow people - charity, compassion, generosity, laughing, being nice.
The world worries about the future while ignoring the present.
That is the risk we all take when reacting to uncertainty.