Tuesday, January 15, 2008

Time goes on

The WSJ plays a central role, as do other news and analysis sources, but today it hit the jackpot in terms of the interests of this, and a related, blog.

On 1/15/08, a main story covered the winners in the sub-prime event, confirming, in a sense, that these things are zero-sum despite the hype argued by some economists. We know about the losers who range from people who face, or have faced, losing their house to various financial institutions that bled heavily, including some smarty-pant hedge funds (more on this later).

Well, on the receiving end of some of those loses is another hedge firm with a different set of bets.

What is common is that the financial instruments involved are relatively new and seemingly entrenched now (Greenspan is consulting on these). Well, those higher-order thoughts involved are duly noted here, but, folks, believe it or not, we're talking hot air, for the most part (despite the fact that many live a fairly rich life while the multitudes suffer from want - age-old problem, in a sense).

In the pm, WSJ noted that there would be a 787 delay which will be published on 1/9/08. Well, there are connects between these two things that will be discussed here and as part of the expansion of truth engineering.

Yet, there is a supreme difference. Finance does not deal with reality to the same extent as does designing and building a plane. In the latter case, the thing can be put together and flown. But, one would hope that such a phase would take precedence over trying to get the means together to put the things out for use. There are several lessons here, perhaps, that we can look at.

In the former sense, there is a wide gap between reality and the workings. Okay, all these numbers flow through the computers and out to the tape (for the youngsters, that was first - all the titillating modern display are mainly extensions of the ticker). Supposedly, the overseeing agencies have put effort into making sure that what flows can be justified (audited), though I really wonder, as can they track 'short' actions that are purely virtual (no, and getting deeper will see that derivatives can hide a whole lot of nothing).

Yet, those numbers, in a sense, represent what is supposed to be a support for doing something real (say, provide food to eat, goods for use, etc.). Finance will always fail that test; hence it ought to be tied more closely to something real (if not gold, pick some arbitrary element).

Program management has some equivalent pitfalls, though the case is better due to the big test environment created by nature and our extensions. One of these is related to earned value which has to do with knowing where you are in the real world sense as you look at some map that is supposedly sufficient to provide guidance through the world (speaking here of the virtual overlay of any project - where at the other end is going to be a real entity).

Somehow, we've lost sight of some key issues. Well, thankfully, events bring about examples that can be used for study.

Remarks:

08/01/2013 -- Ben cannot unwind or taper downhe has too many Doves. We'll have to get back to the king thing (yes, the divine rights of the CEO, new royalty, in other words) and dampening of these types by a new outlook (Magna-Carta'√≠sh).

09/09/2009 -- Alan's reign will be looked at, in time.

Modified: 08/01/2013

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