Financial topics

[reviresco]

picture # 1

depression.jpg (89.78 KiB) Viewed 4657 times

picture # 2

feast.jpg (98.32 KiB) Viewed 4657 times

Picture # 1 was taken approximately 18 years before picture # 2. It must have seemed like a lifetime of strife and struggle. Just birth to high school graduation though when you think about it. 18 years. Our job, I think, is going to be to get our Millennials and their children from picture 1 to picture 2 as deftly and safely as we can.
Our most important job.

[aedens]

http://www.theburningplatform.com/?p=35087

Red or Blue is all the same. Blessed are the poor in spirit.
Forgive them since they know what they do.
http://www.zerohedge.com/news/how-lose- ... dman-sachs

[OLD1953]

The observations about Paris Hilton are correct, she's notorious becasue she is notorious, therefore she is in her own public persona an empty page or blank slate which would effectively allow her to map the economy by dating whomever was "hot" (IOW, making the most money or biggest headlines) at the moment. Having neither moral compass nor ethical worries, she is free to act as an indicator that points towards whatever is most attractive at the moment. I have to doubt there'll ever be a PaH index, despite her accuracy. But she's no doubt a good measure of market peaks.

Aedens, my issue with Mises and in fact almost everyone, strikes at the roots of the general assumptions made by everyone about modern economic systems. The thing is, if we count all forms of property seizure and free dispensation (or unrealistically cheap) of property as stimulus, stimulus has been present in some form since the founding of capitalism with banks and modern ideas of markets. This has been a factor in all economic systems and our expectations of them. And we appear to be moving into an era when stimulus is impossible. If so, we are going to see more drastic changes than we now imagine.

[aedens]

But the euro also had some other defects of which the architects were unaware and which are not fully understood even today. In retrospect it is now clear that the main source of trouble is that the member states of the euro have surrendered to the European Central Bank their rights to create fiat money. They did not realize what that entails – and neither did the European authorities.

I find this a so called master builder dilema for what it is from Soros above, dangerous to free Men . Greece is the outpost to slow the tide into the hinterlands. Thus the true gatekeepers heed another day under the sun. http://www.middle-ages.org.uk/el-cid.htm

The discovery by financial capitalists that they made money out of issuing and selling securities rather than out of production, distribution and consumption of goods accordingly led them to the point where they discovered that the exploiting of an operating company by excessive issuance of securities or the issuance of bonds rather than equity securities not only was profitable to them but made it possible for them to increase their profits by bankruptcy of the firm, providing fees and commission of reorganization as well as the opportunity to issue new securities.
When the business interests pushed through the first installment of the civil service reform in 1881, they expected to control both political parties equally. Some intended to contribute to both and to allow an alternation of the two parties in public office in order to conceal their own influence, inhibit any exhibition of independence by politicians, and allow the electorate to believe that they were exercising their own free choice.

Nothing has changed since 1934 to today since technocrats and lobbyists are the market. The rest is a waste of pen. I just note 1965 as my trend modifier
to scale of ruin of design.

Sample today: The illusion comes from the fact that this paper profit was not the result of selling products that allowed businesses and consumers to be more productive and more profitable in their own right. What was really happening was that financial firms were extracting equity that had been built up over nearly a century by businesses and consumers. The financial business had become a predatory business, scavenging the land for pockets of wealth to convert into cash that would be funneled in part to the banks as fees.

It’s not clear that even at the highest levels the bankers understood what they were doing, since businessmen in the heat of competitive battle do not have the time to muse over the broader social implications of what they do. This is a job for government policy wonks and business professors, most of whom spent their time enabling and cheerleading for the banks. Moreover, some of what the industry did helped their customers, such as automated bill paying, even though this was a smaller proportion of bank profits.

The Last Frontier
We come to the final stage of this process, wherein the financial industry has infiltrated the federal government itself, capturing it completely for its own purposes, and latching on to the last great source of equity – the ability to tax.

[Higgenbotham]

But the euro also had some other defects of which the architects were unaware and which are not fully understood even today. In retrospect it is now clear that the main source of trouble is that the member states of the euro have surrendered to the European Central Bank their rights to create fiat money. They did not realize what that entails – and neither did the European authorities.

I find this a so called master builder dilema for what it is from Soros above, dangerous to free Men.

I'd like to ask him how that's any different than the 50 US states surrendering their right to create fiat money.

[John]

Higgie, here's something right up your alley:



http://online.wsj.com/article/SB1000142 ... 49720.html

John

[aedens]

Inaction is just a carte blanche for investors to sit on the sidelines and wait for things to deteriorate further.
Vanilla if not totaly braindead get its. The market will wait and waste from statist who always turn on the people.
Citizens are tired of being ATM machines as the statist foment another enemy, red, brown, yellow whatever suits
sociopaths of this generation. Every one knows the drill.

[Higgenbotham]

John,

I think right now they should be looking more closely at 1930 and 1987. Though there is a lot of similarity to 2010 at this point in time, it may not continue. On that comparison, today seems most similar to June 8, 2010.

I don't think the market is going to crash just yet. It may get about a week of relief and actually could rally strongly enough to convince everyone the worst is over. If it doesn't start to rally sometime tomorrow, then I don't know what's going on.

[aedens]

“President Clinton is a true public servant who has dedicated his career to helping middle-class Americans and those trying to reach the middle class achieve the American Dream,” said Debbie Wasserman Schultz, chairwoman of the Democratic National Committee, who announced the trip."
http://www.rawstory.com/rs/2012/06/01/d ... tt-walker/
It is putrid ripe for political economy to self serve destruct. Spillover will be real as the real money sorts out these idiots.
HFT is the marginal setter of prices, with no regard for value, logic or analysis
http://www.abc.net.au/news/2012-06-04/s ... nd/4050256
June 04, 2012 12:03:25
Investors are set for a rough day of trade on the Australian share market. (AFP: Torsten Blackwood, file photo) Related Story: US jobless rate rises, growth stumblesRelated Story: Wall Street slips as job woes worry investorsMap: Australia
The Australian share market slipped below 4,000 points this morning amid fears that the world's major economies will fall back into recession.
At 11:25am (AEST) the benchmark ASX 200 index was 1.7 per cent lower at 3,994, dropping below 4,000 for the first time in seven months, and the broader All Ordinaries Index had fallen 1.8 per cent to 4,044.

http://www.bloomberg.com/markets/stocks/futures/

[aedens]

“The longer the inflationary distortions continue, the more severe the recession-adjustment must become.” [Rothbard’s America’s Great Depression, p. xxvii] Notice that both of these are statements about the severity of the maladjustments, not statements about the length of the recession/depression [and subsequent recovery]. It is an inappropriate jump in logic to go from the conclusion that the greater the length of the period of artificial credit expansion the greater the degree of malinvestment and, thus, the greater the necessary reallocation of resources, to a prediction about the length of the adjustment period.

The restructuring of the economy requires a realignment of relative prices and wages. The crisis and the period of recession are the “necessary corrective process by which the market liquidates the unsound investments of the boom and redirects resources from capital goods to consumer goods industries,” says Rothbard (p. 12). How long this adjustment takes, however, is more a historical problem than a theoretical one.

Of a few small positions they are commissioned to duration of 2020
I tend to feel as we do here the eye has come. No we cannot guage this yet.

Level I - pathological defences (i.e. psychotic denial, delusional projection)
Level II - immature defences (i.e. fantasy, projection, passive aggression, acting out)
Level III - neurotic defences (i.e. intellectualization, reaction formation, dissociation, displacement, repression)
Level IV - mature defences (i.e. humour, sublimation, suppression, altruism, anticipation)