Friday, September 19, 2008

Oops as poop

Yes, the title sort of sets the tone here. Business week, recently, had an op-ed that said that the Fed (and Treasury and others of the ilk) are spitting in the eye of those who have made good economic decisions the past few years; too, they're stiffing the savers and those working for their own future.

What does that mean? Well, lets talk first about those who fail, get bailed out, and then come back for another day. How long do we have to deal with this type of thing? Like AIG who floated in dough for years; when it's time to pay out (that is, put the money where the mouth is), they disappear. Oh, floated how? Well, many mansions and a high life, essentially.

There has to be a growth rate for the less risky that is a good basis (what? 4%? name it!). That those dealing in the stock market can show an increase over the years in value has been made problematic by the 'gaming' that the computer has allowed. What value can be ascertained anywhere? The reason for the unwinding results that we see show us that the 'froth' is essential to the churning rate. That is probably a poor metaphor, yet looking at Minsky's idea ought to give us pause (hedge to speculate then ponzi/pyrimid [oh, don't tell me that some hedge funds (perhaps many) have not had huge returns just because their basis is expanding due to more money] as an inevitable sequence).

Well, poop will have to now be added to the 'oops, loops, oops, and nooop group. I could not see how that pejorative word would apply to product management or engineering (perhaps too close to that to see it - other than the normal joke of going around with a shovel after certain types - the saving grace there is that nature and testing will iron out the truth). But, it does deal with the financial crowd who has run rampant the past few years, fostering on us all sorts of idiotic schemes, yet at the same time getting press due to the wow factor.

So, there have been many, who have worked hard, accumulated assets (like through savings and other mature economic moves), and tried to keep from all those silly shell games being offered by the supposedly smarter.

Yet, who gets bailed out? Those who are basically economically immature and who crap all over those who are economically mature and more sane.

It may be that a lot of this 'bailing' is to help influence the election; on the positive side, much may be learned from this; unfortunately, those who play games will only be more emboldened to continue their sandboxy ways.


03/22/2011 -- It's spring, and the garble uses gambling metaphors.

09/12/2009 -- Sandbox was used without definition. Let's discuss that concept.

08/24/2009 -- Last year, Ben blinked and panicked. He frantically pulled out all stops as if with no thought for tomorrow. Now, he has no use for 'mea culpa' big daddy that he is. Ben, start to unwind now. The Vienna School's view that these things are undecidable (which is a computational issue) is right on.

07/31/2009 -- Let's see, 5,000 got over $1M for services rendered. Well, that's probably a sign of being a best-and-brightest, at least to certain eyes; it's called rolling-in-the-dough.

Now, this can be used to illustrate how the game it to fill the pockets of a small set to an exorbitant amount. Does the game need to be that way? Hell no. We'll look at that some more.

01/18/2009 - We even need to look at why we need finance.

12/05/2008 -- Not to be gross, but we can be biological and talk about a cycle. We have an eating phase and an elimination phase. A good article to read in regard to recent boom/busts is Harry Blodget in the December 2008 Atlantic ("Why Wall Street Always Blows It").

12/01/2008 -- We need to learn what we might be taught about money by Islamic Finance.

11/20/2008 -- Boon and bust, the way of fairy dust.

Modified: 03/22/2011

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