Comments on: The menace of financial markets Wed, 07 Oct 2015 17:23:32 +0000 hourly 1 By: tmc Sun, 24 Feb 2013 14:26:22 +0000 I don’t mind people gambling with their money. It is their money. But I do have problem with Banksters that “spin” gambling into a financial market and demand that others play. It is immoral.

By: chapapet Fri, 22 Feb 2013 14:28:08 +0000 I thank those above who comment that it is not a perfect system but more those who recognize that “greed” is prevalent in this system that never seems to close the door to making it possible…
nothing is perfect but what makes it so difficult to understand “the wrong”…
this article is about what, the fix, the wrong, the errors; it comes down to those who want more with no concern about right or wrong…

and “TES” it is the American dream to be wealthy but please remember some will never be so fortunate and “maybe you and I share the blame for this”…

Thank you.

By: Sanity-Monger Thu, 21 Feb 2013 19:40:19 +0000 Mr. Hadas, you’re opening up the magic curtain and I’m pretty sure the wizards aren’t going to like it. I often wonder if they believe their own nonsense or are intentionally hoodwinking us (i.e. are they a lot more stupid than I am or a lot smarter?). One of my amusements is to watch the explanations that the financial press provides for movements in the market. A drop in unemployment can be the “cause” of a rising market one day and a falling one some other day. One report will attribute change to the trade balance, while another says it’s the payroll data. Anyone even half paying attention soon realizes it’s all malarkey. Except it’s not. It impacts whether I have a job tomorrow and the price of a loaf of bread. Not because of any actual change in economic reality, but because of the change in perceptions.

Most folks think that a firm makes money when its stock price goes up, when of course they have already collected all the revenue they’re going to get with the original stock issuance (until more stock is issued). Once this is pointed out, we can all see that stocks held for growth potential are only legalized gambling instruments of (almost) no relevance to the real economy. Dividend-paying stocks are another matter and have a much older and fairly venerable history.

By: paintcan Thu, 21 Feb 2013 18:21:47 +0000 @xcanada2- Not details – Just that honesty is demanded. A lot of the problems of the last thirty years have resulted from dishonesty and completely irresponsible self-serving activities and they have been defended as freedom and the pursuit of happiness or the needs of security.. I am very small potatoes and that’s what an irresponsible person like me should be. Some very big, big shots want the rewards and almost no responsibility for their actions like OOTS complains.

I think I know why old middle-eastern autocrats, like the Sultan of Constantinople, used to behead disgraced government officials. The Sultan’s probably knew that the grunts of society always took the burdens of life in their flesh. They are the one’s who worked like beasts and died like flies whenever the top made a move. They expected their governments to feel the pain too. Walking on a tight rope tends to weed out the garbage and the gadflys (no offense txgadfy). Any government that is truly compassionate knows this. This government is ridiculed frequently for being to liberal or too kind – but the real issue is one of self-sacrifice. The wealthy do no one any service simply by being wealthy. The less lofty don’t do anyone any favors by being poor and stupid either. But I always sort of thought they did like they were cogs in a well functioning and self-correcting machine.

The last ten years has proven to me “the machine” (with or without ghosts in it) is a clunker. .

It must be obvious I’m getting religion again (I haven’t quite figured out which one) and hope it sticks a little better than the last times I tried and gave up because it didn’t look any better than what I couldn’t understand anywhere else.

And at TMC – the US invented the bomb and used it and it hasn’t left them alone since.

BTW – a society with little self-respect, with hardly any self-control and indulging in every vice imaginable, will get a government that reflects them perfectly. I’m getting religion and it’s scaring the merd out of me. I’m not sure there is anything left in me if I ever see “the light”. I hope it isn’t the spiritual equivalent of a nuclear bomb. I think I can handle about a flash bulbs worth of “illumination” at a sitting.

By: donee Thu, 21 Feb 2013 15:16:08 +0000 I suggest that those holding both vision and opportunity to influence the shape of our nation using wealth will never create adequate employment or better society because they’ll never sacrifice short term opportunities in order to achieve a sustainable economy.
We live today amidst a daily lottery of increased threat of job loss and or underemployment, increased threat of loss of savings, increased theat of bodily harm and a workplace shedding itself of obligations and long term commitments.
What’s needed now is that nation’s conscience, reminder of past mistakes and early warning system, fair media, which will inspire us to gather overwhelming public opinion in order to force changes restoring democratic principles. Too few today control too much news media and their control poses the most flagrant conflict of interest. I remind us of our having stripped such ownership in the past and I remind us that nations that once had fair media once had good government.

By: tmc Thu, 21 Feb 2013 14:30:13 +0000 @Paintcan, great post sir. I agree with you and can see the values you speak of in Islam. There are other religions and practices that ask for morals in business. This country had forgone that to win the cold war maybe? But we can’t put the genie back in the bottle. Can’t put morals and ethics back into finance.

By: tmc Thu, 21 Feb 2013 14:23:36 +0000 @jaham, yes indeed the banks do not need those specific markets. An old American movie called “It’s a wonderful life” will explain it to you. Many Americans still believe in the type of banking it portrays as they lived it in there youth and middle age. It has only been since the 1970 when we reformed baking that this changed. Many of us would like to see it change back.

By: phoen2011 Thu, 21 Feb 2013 12:40:46 +0000 when the speculation tries to bring down the euro , it is the legimate market reaction. When the markets wake up and find out that the Uk defict in % of Gdp is higher than Greece, the devaluation of the pound has brought zero benefits to the export, the inflation is out of control and the triple dip is even deeper than expected, than we must rein in the markets.
Sorry, this time the entire world will have quite some fun watchin the disUnited Kingdom collapsing. And don’t even dream of some help from the Fed or the ECB

By: xcanada2 Thu, 21 Feb 2013 07:44:08 +0000 @paintcan:

So, do you think there is an economic way in Islam that could be useful to the West?

By: paintcan Thu, 21 Feb 2013 02:15:57 +0000 My old retired Dad for years was making some side money on short term trades like so many others (the etrade people) but he also had saner and more stable investments. But I recall twenty years ago while he was helping me put up my house that he couldn’t rely on dividend income from slower stocks and certainly not bonds – because it was being out performed by frenzies surrounding all sorts of higher performing stocks like those involved with M&As, the Dot Com boom and bust, and more recent real estate bubble. This issue is much more sophisticated than I truly understand but I think I got the gist of his complaints.

But at least ten years ago he realized he was out of business in short term trading because of the huge advantage the high speed trading powered by super computers and highly sophisticated programming that really could not be competed with unless the investor – as he tends to say – was willing to be eaten by the big “predators”. A lot of the puffing done on FNN is really designed to help the sheep part with their wool. Only the very big gamers can ever use those tools.

And in many ways this country has become something of a predator itself. The advantage and sophistication of our own economy can pick off the little fish, nearly at it’s pleasure, and can grab up hard assets and resources through financial leveraging vehicles that are really a variety of forms of debt.

I think the greatest fear the financial markets may have is that people in less sophisticated economies will start to try to get loans and cash from other countries or do it themselves. The last few years shed a bright light on the flimsy nature of our economic might and revealed it as more of a con game and come on than most realized. They didn’t call the tycoons of the late 19the century robber barons for nothing. They had such scale they dwarfed the government and many big fish want them back.

But all remedies will be useless unless the rules of the game are established globally and that isn’t likely to happen. Without “funny” money (some of the more dicey derivatives) driving this economy, the emperor may find he is not only naked, but he lost a hell of a lot of weight.

There’s something perhaps to be said for old-fashioned ideas that were imbedded in Islam. They liked to make sure that even financial transactions were “halal” or kosher. That was never so well defined in Christianity and not very well established in Judaism either. Judaism was rather lacking in global outlook. It tends to see itself as a tribe but that is not true of all its believers, not even in ancient times. Christianity is the odd man out, financially speaking. It seems to be all or nothing in Christianity.