tag:blogger.com,1999:blog-83751750910502077462024-03-13T06:14:09.463-04:00Chaos LyceumFibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.comBlogger73125tag:blogger.com,1999:blog-8375175091050207746.post-19193754735066899042012-11-09T16:45:00.000-05:002012-11-09T19:45:55.099-05:00How to Row a Boat 101Now that the GOP are realizing that they have been living in an alternate universe, perhaps they should revisit the premises that have guided their delusional voyage towards irrelevancy and obscurity:<br />
<ul>
<li> lower rates do not necessarily mean higher revenues (at least not adjusting from these historical low levels..yes, there are limits to the elasticity of the Laffer curve)</li>
<li>tax cuts do not necessarily create jobs (perhaps in Asia where a significant amount of investment capital is headed as per the axiom of free markets).</li>
</ul>
America--like the rest of the West--have serious structural problems that, if not attended to, will certainly lead to the demise of the type of society that has enhanced the standard of living of the entire civilization. Ironically, the tenets of free markets have been convoluted and manipulated to reflect what Adam Smith warned about in The Wealth of Nations. (Smith would mockingly point at Wall Street and say 'I told you so...')<br />
<br />
Insurmountable levels of debt--as a result of fiat money--and wealth polarization (a sure sign of an ever strengthening plutocracy) are the most pressing of the macro economic challenges and need to be dealt with immediately. (in case anyone thinks that the polarization of wealth is a healthy thing for society they should look into taking a remedial course in economic history.). Wagering on the longevity of a nation suffering from these two conditions is not considered prudent.<br />
The challenge will have to be met in an environment where education and vocational retraining will be essential in order to keep America competitive.... a nation with a crumbling infrastructure...a nation with a gargantuan demographic about to saturate the ranks of the retired. This may seem impossible to overcome but Americans--like so many other Western nations--don't have a choice. The time for sophism, extremist ideology, and adhering to policies that are marred with contradictory empirical evidence are about to end--if not by choice, certainly by necessity.<br />
Everyone likes to blame someone else for the problems--which only serves to exasperate the economic and social polarization. We live in a culture where accountability, trust and most other virtues are considered impediments to personal growth--virtues that deter from being able to compete in an ever shrinking quickly changing world. Blame is a waste of energy and time: it is time to find solutions before a less-than-pretty natural solution is rendered upon us.<br />
How does one find the solution?<br />
<ul>
<li>Identify the problem!!!</li>
<li>How to ascertain the problem?</li>
<li>Follow the Money!!! </li>
<li>Have the balls not to sell out once you have found the root of the problem.</li>
<li>Formulate a solution in a fair and just manner. </li>
</ul>
<br />
You can only get to an intended destination in a rowboat if both oars are working complimentary to one another--not necessarily in unison--but at the very least in a congruent manner. America has to realize this soon if they expect to continue to live in a nation that embraces liberty. Both wealth polarization and excessive indebtedness lead to forms of slavery. I would hope that both sides of the America political juggernaut can at least initially agree that slavery is not a good thing...but maybe even that is asking too much!!!!! Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-37179555732284308642012-03-11T00:50:00.000-05:002012-03-11T00:51:00.305-05:00The Paradox of the Digital Age.Societies and cultures are in the midst of massive change due to the incredible innovation in the digitization of information. The evidence continues to mount that the Industrial Age is being superseded by the maturing of the Information Revolution. The economic engine of the Industrial Revolution was the capitalist free market system which facilitated the efficient exploitation of natural resources and triggered innovation in mass production resulting in the optimization of the division of labour. While allowing individuals to pursue their self interest in a liberal market environment is not without its darkside, the free market paradigm is largely responsible for the standard of living we in the Western World have enjoyed.<br />
<br />
As the Industrial Age fades into history the nascent Information Age continues to use the free market economic architecture. This presents a significant social problem that will have to be dealt with sooner than later. The free market system exploits resources in order to generate profits. This is not necessarily a bad thing if the term 'exploit' is taken purely in economic context--meaning to make the productive use of an asset. But exploitation can also be defined as making use of something in an unfair and malicious way for one's own advantage. There is a fine line between the two and when the exploitation of an asset changes its nature there is inevitably a moral line that has to be crossed. Recent misfeasance on Wall Street testifies to this ongoing dilemma that our society faces.<br />
<br />
The problem that arises in the Information Age is that information--digitized data--becomes the new resource to be exploited for profit. The engines of capitalism no longer solely focus on the exploitation of natural resources or the division of labour, but now values pure information as a marketable economic asset. Much of our personal information is now digitized and classified as an economic asset by innovators of technology and by the stewards of the digital highway. Our privacy--the very basis of our liberty--is now subject to exploitation for profit as minerals, oil deposits and labour were in the Industrial Age. This exploitation can be productive in nature or it can be malevolent in nature.<br />
<br />
The basic tenet of John Stuart Mill's seminal tome "On Liberty" was the 'Harm Principle'--essentially meaning to DO NO HARM. Although Mill's work was published during the Industrial Revolution his moral and political philosophy has never been more important for our digital culture to embrace. If we allow ourselves to have our privacy exploited in a productive and just manner societies and individuals could reap great rewards. But conversely, if our personal information is exploited in a malevolent manner our liberty will soon be lost. The consequences of the latter will set the stage for tyranny and a return to serfdom. Who would have ever thought that the advent of the computer could possibly usher in a new Dark Ages. The paradox of the digital age.Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-90957222704141821582011-10-17T12:06:00.000-04:002011-10-17T12:06:08.476-04:00Here Are Four Charts That Explain What The Protesters Are Angry About...<a href="http://www.businessinsider.com/here-are-the-four-charts-that-explain-what-the-protesters-are-angry-about-2011-10?utm_source=twbutton&utm_medium=social&utm_campaign=bi">Here Are Four Charts That Explain What The Protesters Are Angry About...</a>:<br /><br /><a style="font-size:13px" href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk">'via Blog this'</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-29188039071293063512011-10-09T19:27:00.000-04:002011-10-09T19:27:36.682-04:00This is Why They Hate You and Want You to Die | The Reformed Broker<a href="http://www.thereformedbroker.com/2011/10/09/this-is-why-they-hate-you-and-want-you-to-die/">This is Why They Hate You and Want You to Die | The Reformed Broker</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-91265515147456104622011-09-30T15:29:00.000-04:002011-09-30T15:29:06.895-04:00Read and Download the MBA Oath | The MBA Oath<a href="http://mbaoath.org/about/the-mba-oath/">Read and Download the MBA Oath | The MBA Oath</a>:<br /><br /><a style="font-size:13px" href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk">'via Blog this'</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-84654037646614659162011-09-12T13:35:00.000-04:002011-09-12T13:35:46.653-04:00Sheila Bair, FDIC, and the financial crisis : The New Yorker<a href="http://www.newyorker.com/reporting/2009/07/06/090706fa_fact_lizza">Sheila Bair, FDIC, and the financial crisis : The New Yorker</a>:<br /><br /><a style="font-size:13px" href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk">'via Blog this'</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-48110670509766662292011-09-02T13:38:00.000-04:002011-09-02T13:38:15.667-04:00American Bankers Do Not Deserve $2.2 Trillion In Pay And Bonuses<a href="http://www.businessinsider.com/american-bankers-do-not-deserve-22-trillion-in-pay-and-bonuses-2011-9?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+clusterstock+%28ClusterStock%29&utm_content=Google+Feedfetcher">American Bankers Do Not Deserve $2.2 Trillion In Pay And Bonuses</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-48341333515853192452011-08-12T17:53:00.000-04:002011-08-12T17:53:35.231-04:00The Junkie in the Pool and False Idols: Faith in Wall Street and The Fed Has Eroded<a href="http://www.oftwominds.com/blogaug11/partys-over-8-11.html">charles hugh smith-The Junkie in the Pool and False Idols: Faith in Wall Street and The Fed Has Eroded</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-61600384496780967042011-08-03T12:39:00.000-04:002011-08-03T12:39:04.773-04:00The Second Great Contraction - The Globe and Mail<div>Politicians would be wise to listen to the Rogoffs--however their myopic egos will likely not allow them to.</div><div><br /></div><div><br /></div><a href="http://www.theglobeandmail.com/news/opinions/opinion/the-second-great-contraction/article2117504/">The Second Great Contraction - The Globe and Mail</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-75396864775798259292011-06-08T17:53:00.001-04:002011-06-08T17:56:14.779-04:00Fiduciary versus suitability standard | Advisor.ca<a href="http://www.advisor.ca/news/industry-news/fiduciary-versus-suitability-standard-50489">Fiduciary versus suitability standard | Advisor.ca</a><div><span class="Apple-style-span" style="color: rgb(70, 70, 70); font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; "><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 30px; "><br /></p><p style="text-align: center;margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 30px; "><b>My Comment</b></p><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 30px; ">Although the industry–both domestically and globally–is moving towards a fiduciary standard, care should be taken not to abandon the ‘transactional’ client or a client that willingly trades growth stocks <i><b>with an advisor who has expertise in this sector</b></i>–whether it be resource, biotech or hi-tech in nature.<br />This is slowly becoming an neglected part of the retail industry due to matters of cost and compliance risk. However, it should not be forgotten that venture capital is the essence of the capitalist paradigm–the foundation from which everything else in the industry stems from. The allocation of capital between risk takers and exploration and innovation entrepreneurs is paramount to the success of capital markets.<br />Obviously, the issue of suitability is an investment principle that has to be clearly established in the opening and operation of a transactional account, but the universalization of a fiduciary standard would not be appropriate or effectual in such instances.<br />It is important that the industry recognize the importance of the junior resource-technology sectors of the markets and endeavor to accommodate traders and investors who are willing to assume the risks involved–even though it may lead to higher costs and compliance issues–That is the essence of capitalism.</p><div><br /></div><p style="margin-top: 0px; margin-right: 0px; margin-bottom: 10px; margin-left: 0px; padding-top: 0px; padding-right: 0px; padding-bottom: 0px; padding-left: 30px; "></p></span></div>Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-71939223207040983442011-01-27T14:02:00.000-05:002011-01-27T14:02:05.318-05:00Calculated Risk: Financial Crisis Inquiry Commission report<a href="http://www.calculatedriskblog.com/2011/01/financial-crisis-inquiry-commission.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CalculatedRisk+%28Calculated+Risk%29&utm_content=Google+Reader">Calculated Risk: Financial Crisis Inquiry Commission report</a>Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-10562052317870574292010-11-12T15:17:00.000-05:002010-11-12T15:17:10.871-05:00Institutional Fraud Has Taken Over Everything From Mortgages To Markets To Politics<a href="http://www.businessinsider.com/institutional-fraud-2010-11?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+clusterstock+%28ClusterStock%29&utm_content=Google+Feedfetcher">Institutional Fraud Has Taken Over Everything From Mortgages To Markets To Politics</a>Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-44650544836507776982010-07-16T15:13:00.002-04:002010-07-16T15:18:30.908-04:00The Country Club.Once upon a time there was a country club that catered to the crème de la crème of society. Members were apparently blessed with wealth, class, dignity and all the other attributes expected of the elite. Certain protocols were expected to be maintained when the ‘pretty people’ mingled and socialized in the confines of the exclusive club.<br /><br />One day a garish patron entered the club full of bravado and unmitigated audacity. (Think: Rodney Dangerfield in Caddy Shack) The patron—Mr. Tinman and his mistress Mz. Suchs demanded the best service, repeatedly sending their carefully prepared cuisine back to the kitchen complaining that it was not up to the standards that one would expect for guests of their eminence and import. <br /><br />Finally after making life difficult for the staff and ruining the meals of the other patrons—to whom they felt infinitely superior—the maitre de presented the bill for the meal. The cheque was in the amount of $13.4 Billion— a reasonable sum considering that the amount really did not matter since it would ultimately be paid by Mr. Tinman’s benefactor,Mr. Federalas, to whom they relied upon to maintain their position in the social strata.<br /><br />Mr. Tinman complained loudly about the service and the conditions in which he and his guest had to dine. After disrupting the entire evening of the other patrons and belittling the staff, Mr. Tinman grudgingly paid the bill and added a paltry gratuity of $550 million—a mere 4.1% of the bill.<br /><br />After the obnoxious guests had departed for their summer home in the Hamptons, the staff and management met to discuss what should be done about the frequent visits from Mr. Tinman and his entourage. It was decided that putting up with his crass and discourteous behaviour was unacceptable and that his membership should be revoked at the club.<br /><br />Upon hearing of this decision, the kindly benefactor—Mr. Federalas--pleaded with the management of the Club to allow Mr. Tinman to keep his membership since if it was revoked the Tinman family would have a hissy fit and make life terrible for everyone that they came in contact with—especially other members of the club.<br /><br />After some deliberation management acquiesced since they knew that in order to survive they had to accommodate even the spoiled brats that belonged to the club. The members of the club soon became accustomed to the obnoxious behavior of Mr. Tinman and actually some members began to emulate his behavior since it was so entertaining to pretend that membership in the country club meant that you could behave in any manner you wished without regard for others.<br /><br />Over time the status of the club declined and became a refuge for disingenuous hypocritical ‘low lifes’ who loved to put on airs that they had class and dignity. The staff and management eventually changed and became as obnoxious as the patrons. Everyone lived happily ever after.Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-80965539374306642552010-07-16T11:53:00.000-04:002010-07-16T11:53:27.125-04:00Spare Me The Sudden Outrage The Reformed BrokerMr. Brown posted this to his blog in April of 2010. Cant get a prognostication much more accurate than this.<br /><br /><a href="http://www.thereformedbroker.com/2010/04/16/spare-me-the-sudden-outrage/">Spare Me The Sudden Outrage The Reformed Broker</a>Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-46681325184924485142010-07-16T01:30:00.000-04:002010-07-16T01:30:49.631-04:00DISGUSTING<a href="http://www.businessinsider.com/the-sec-just-blew-it-2010-7?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+clusterstock+%28ClusterStock%29&utm_content=Google+Feedfetcher">The SEC Just Blew It</a>Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com1tag:blogger.com,1999:blog-8375175091050207746.post-50470102709867387472010-06-29T11:57:00.000-04:002010-06-29T11:57:11.755-04:00Robert Rubin: Architect of Doom (excpet for his buddies)At some point in time the realization that the world has been conned by a group of plutocrats will become painfully obvious--as if it hasn't already.<br /><br /><a href="http://us1.institutionalriskanalytics.com/pub/IRAMain.asp">Institutional Risk Analytics</a>Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-66385145999022819962010-06-27T23:59:00.001-04:002010-06-28T00:01:32.566-04:00Income Gaps Between Very Rich and Everyone Else More Than Tripled In Last Three Decades, New Data Show — Center on Budget and Policy Priorities<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://1.bp.blogspot.com/_kcMUrYtx3JY/TCgeiyGb7XI/AAAAAAAAAjU/ckcyl7smT_g/s1600/Wealth+Distribution.JPG"><img style="display: block; margin: 0px auto 10px; text-align: center; cursor: pointer; width: 400px; height: 261px;" src="http://1.bp.blogspot.com/_kcMUrYtx3JY/TCgeiyGb7XI/AAAAAAAAAjU/ckcyl7smT_g/s400/Wealth+Distribution.JPG" alt="" id="BLOGGER_PHOTO_ID_5487669728864103794" border="0" /></a><br /><a href="http://www.cbpp.org/cms/index.cfm?fa=view&id=3220">Income Gaps Between Very Rich and Everyone Else More Than Tripled In Last Three Decades, New Data Show — Center on Budget and Policy Priorities</a>Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com6tag:blogger.com,1999:blog-8375175091050207746.post-41562643119890495652010-06-05T18:31:00.013-04:002010-06-06T02:11:32.398-04:00How's Supply Side Economics Working Out For You ?The four stated goals of Supply Side Economic Policy<br />1. Reduce government spending,<br />2. Reduce income and capital gains marginal tax rates,<br />3. Reduce government regulation of the economy,<br />4. Control the money supply to reduce inflation<br /><br /><span style="font-size:130%;"><span style="font-weight: bold;">Government Spending</span></span><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://2.bp.blogspot.com/_kcMUrYtx3JY/TAs76DncRNI/AAAAAAAAAeM/KSO1kwyeo60/s1600/Deficits.JPG"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 240px;" src="http://2.bp.blogspot.com/_kcMUrYtx3JY/TAs76DncRNI/AAAAAAAAAeM/KSO1kwyeo60/s400/Deficits.JPG" border="0" alt=""id="BLOGGER_PHOTO_ID_5479539240215528658" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://2.bp.blogspot.com/_kcMUrYtx3JY/TAsuTODEYaI/AAAAAAAAAd0/bGhC9vSFQLA/s1600/govt+spending.JPG"><img style="display: block; margin: 0px auto 10px; text-align: center; cursor: pointer; width: 337px; height: 400px;" src="http://2.bp.blogspot.com/_kcMUrYtx3JY/TAsuTODEYaI/AAAAAAAAAd0/bGhC9vSFQLA/s400/govt+spending.JPG" alt="" id="BLOGGER_PHOTO_ID_5479524279349698978" border="0" /></a><span style="font-size:130%;"><span style="font-weight: bold;">Effective Individual Income Tax Rates</span></span><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_kcMUrYtx3JY/TAsvCcjlo6I/AAAAAAAAAd8/EOnrMgrhZxU/s1600/effective+tax+rate.jpg"><img style="display: block; margin: 0px auto 10px; text-align: center; cursor: pointer; width: 400px; height: 266px;" src="http://4.bp.blogspot.com/_kcMUrYtx3JY/TAsvCcjlo6I/AAAAAAAAAd8/EOnrMgrhZxU/s400/effective+tax+rate.jpg" alt="" id="BLOGGER_PHOTO_ID_5479525090698044322" border="0" /></a><span style="font-size:130%;"><span style="font-weight: bold;">Adjusted Monetary Base</span></span><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/_kcMUrYtx3JY/TAsszAAJwsI/AAAAAAAAAdk/zSiNAOk0wL4/s1600/MS.JPG"><img style="display: block; margin: 0px auto 10px; text-align: center; cursor: pointer; width: 400px; height: 251px;" src="http://3.bp.blogspot.com/_kcMUrYtx3JY/TAsszAAJwsI/AAAAAAAAAdk/zSiNAOk0wL4/s400/MS.JPG" alt="" id="BLOGGER_PHOTO_ID_5479522626311930562" border="0" /></a><br /><span style="font-size:130%;"><span style="font-weight: bold;">Wealth Distribution</span></span><br /><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_kcMUrYtx3JY/TAsqU66rZII/AAAAAAAAAdc/QCkDOaGqAcw/s1600/Dist+of+wealth.com"><img style="display: block; margin: 0px auto 10px; text-align: center; cursor: pointer; width: 400px; height: 253px;" src="http://4.bp.blogspot.com/_kcMUrYtx3JY/TAsqU66rZII/AAAAAAAAAdc/QCkDOaGqAcw/s400/Dist+of+wealth.com" alt="" id="BLOGGER_PHOTO_ID_5479519910527460482" border="0" /></a><br /><span style="font-size:130%;"><span style="font-weight: bold;">Total Government Debt as a % of GDP</span></span><span style="text-decoration: underline;"><span style="font-weight: bold;"><br /></span></span><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/_kcMUrYtx3JY/TAsxvtx7ABI/AAAAAAAAAeE/JfIoIyY3IGY/s1600/debttoGDP.JPG"><img style="display: block; margin: 0px auto 10px; text-align: center; cursor: pointer; width: 400px; height: 308px;" src="http://3.bp.blogspot.com/_kcMUrYtx3JY/TAsxvtx7ABI/AAAAAAAAAeE/JfIoIyY3IGY/s400/debttoGDP.JPG" alt="" id="BLOGGER_PHOTO_ID_5479528067438936082" border="0" /></a><br /><br />It seems to be working out rather well for the banks.<br /><a href="http://www.forbes.com/2010/06/03/goldman-sachs-citigroup-markets-lenzner-morgan-stanley.html">Six Giant Banks Made $51 Billion Last Year</a>Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com2tag:blogger.com,1999:blog-8375175091050207746.post-83747934965214023702010-06-04T09:30:00.001-04:002010-06-04T09:35:47.095-04:00And not going away any time soon....<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_kcMUrYtx3JY/TAkBI2ppr0I/AAAAAAAAAc0/rAvNcC-A6mE/s1600/BP.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 336px;" src="http://4.bp.blogspot.com/_kcMUrYtx3JY/TAkBI2ppr0I/AAAAAAAAAc0/rAvNcC-A6mE/s400/BP.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5478911673293713218" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_kcMUrYtx3JY/TAkANyalRgI/AAAAAAAAAcs/tPrNKUnBbm8/s1600/bp.bmp"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 263px;" src="http://4.bp.blogspot.com/_kcMUrYtx3JY/TAkANyalRgI/AAAAAAAAAcs/tPrNKUnBbm8/s400/bp.bmp" border="0" alt=""id="BLOGGER_PHOTO_ID_5478910658544485890" /></a>Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-59240437476604942002010-06-04T02:18:00.000-04:002010-06-04T02:18:26.919-04:00OTC Derivatives: Failed Banks or Failed Nations? - Hera - The Mises CommunityThis is a comprehensive discussion about the risk that UNREGULATED derivatives play in the world economy. An opinion like this--coming from a strong proponent of the Austrian School says volumes about how badly out of whack Wall Street, K Street and The Beltway have become.<br /><br />Well worth the read !<br /><br /><a href="https://mises.org/Community/blogs/hera/archive/2010/05/11/otc-derivatives-failed-banks-or-failed-nations.aspx">OTC Derivatives: Failed Banks or Failed Nations? - Hera - The Mises Community</a>Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-1774615156022408312010-05-28T13:39:00.000-04:002010-05-28T13:41:36.967-04:00The Profitability of Business EthicsNew ethics column at <a href="http://www.advisor.ca/advisors/mypractice/runningyourbusiness/article.jsp?content=20100527_113731_11688">Advisor.ca</a>Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-55413799194142072252010-05-10T15:19:00.005-04:002010-05-10T15:40:45.033-04:00Sure, Go Ahead: Blame the Socialists.The thing that I find fascinating is that the problem of bureaucracy is a systemic problem worldwide. I tend to agree that socialism—as defined and demonstrated by Marxists –is an inefficient theory of both political economy, and implicitly, social justice. Where I begin to have a problem with criticism of socialism is that the antagonists are as much to blame for the world’s woes as the failed Marxists. It is interesting to note that since the collapse of the Berlin Wall—and essentially Marxist political economy, the deterioration of individual economies—and as a consequence—the global economy government deficits, financial malfeasance, and other macroeconomic problems have proliferated. This is not to categorically assign blame to ‘capitalists’ but only to point out that much of our troubles have been self-inflicted by the free-market liberal democratic paradigm. Hypocritical politicians have campaigned on the principles of smaller government while the empirical evidence clearly reveals that law makers who claim to seat on the right side of the political teeter tooter are as complicit as those who are deemed to be socialists.(Obama did not create the problems and has merely taken over what the Bush Administration attempted to do to stop the economy from collapsing) The consequences of supply side economics are testament to how ideology can be easily corrupted by the lust for power and influence. Example: For Americans to blame their financial woes on ‘socialism’ is like blaming the boogieman. Reagan, Bush I and Bush II talked a good game on fiscal restraint and trickle down economics—but unfortunately the reality of the current situation seriously tarnishes their credibility. Ironically, it was the left wing Clinton that turned in the best economic performance since Eisenhower—although the surpluses and boom years were more an economic aberration due to the policies of an unbridled Fed than a consequence of his economic policies. <br /><br />Another irony that I see in the current debate about the scourge of socialism is that the social democratic countries—<a href="http://mysquigglylines.blogspot.com/2010/05/america-take-heed.html">namely Norway, Sweden and Finland have economic metrics with regard to fiscal management that reveal a lower financial risk than that of America and the U.K. </a>The Scandinavian countries have managed their economies well during these tumultuous times—although they too have experienced problems in the past—and have been able to deliver a standard of living to its citizens that consistently top the rankings made by the World Bank and other institutions. While I agree that Marxism and other forms of extreme socialism will not make the world a better place in which to live—and that I think it is quite valid to make pronouncements to that effect—solely blaming socialism for the current mess is insufficient—modern capitalism and hypocritical proponents of liberal individualism warrant much of the blame. <br /><br />While the deficiencies of socialism are acknowledged and the burden placed upon us by a burgeoning public sector are obvious—it seems to me that no one has the political will to address the realities of a massive downsizing of government that will be required to remedy the problem. While resources must be moved from the unproductive sector of the economy to a venue that encourages innovation and economic efficiency, the problem of ridding the public sector of literally millions of jobs seems to be constantly swept under the rug. Politicians are excellent at doing the Ostrich trick. How would a government deal with massive unemployment and the necessity of converting a static and lethargic workforce to a mobile and enthused segment of the economy? The Leviathan has to be disassembled and this certainly won’t happen without massive opposition and possible social unrest. When a politician can explain to me how and when that inevitable task would be undertaken I will be encouraged. The dilemma is daunting and will require much misery to be endured by the middle class. The social ramifications are immense. <br /><br /> <br /><br />However, in the end, the mechanism of the free market will handle this—it always has and always will—whether under the guise of capitalism—socialism—theocracy—fascism—monarchy or whatever man can throw in its way. Free markets prevail under any political context—it is just a matter of how long it can remain somewhat in balance under the misguided rule of politicians and financiers who spout their ideology but inevitably succumb to the vices of excessiveness. People have no idea what is on the horizon—I find it very disconcerting. The foundations of our society has fissures running throughout—the structure that holds our societies together and ensure that justice prevails is about to collapse on itself. The memory of the 2007-2008 economic fiasco is quickly fading—the renewed bubble in the stock market attests to the fact that no one is willing to take responsibility and that the status quo is still guiding our path into a financial abyss that has not been witnessed by the world for several hundred years. The culprit—when the history books are written--might be socialism, but the reality of the situation is that endemic greed and elitist arrogance and contempt have exploited the people who form the heart of a society that embraces liberty and the repercussions will be dramatic and filled with personal suffering and misery. When the individuals that are responsible for innovation and production—the middle class—are alienated and disenfranchised anarchy prevails. History has shown that at times like this liberty is often usurped by tyrants and man reverts to cruel and harsh measures to protect what he deems to be rightfully his.<br /><br /> <br /><br />There is only one solution to what ails us: the innate response that our planet and all its living beings employ to endeavor to survive. This will be the work of God—it won’t be pleasant but it will serve to readjust the imbalances that our deviation from virtuous behavior has caused. Later this year, when the markets truly meltdown, people will begin to appreciate the gravity of the predicament that mercenary capitalists and megalomanic politicians have placed our world in. Civilization will soon be ripe for tyrants to emerge and take advantage of the chaos. <br /><br /> <br /><br />It is fine to blame socialists for all our woes—but the evidence clearly reveals that the conservative right and big business are as complicit as the progressives in creating a situation that will change our world drastically over the next decade.Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com5tag:blogger.com,1999:blog-8375175091050207746.post-21941432518855635262010-04-23T15:14:00.004-04:002010-04-23T15:21:59.963-04:00While the Banks were Diddling the Public, The SEC was.....Yesterday I mentioned that 'It is not lack of regulation--it is the failure of regulators to do their jobs properly that is the problem. If regulators are not able to carry out their duties under the current regulatory system--another layer of bureaucratic entanglements will not remedy the problem that has become pervasive in our society.'<br /><br />A new report from ABC News suggests that while the markets were crashing in 2008 SEC officials were busy attending to their own vices. I also stated that' until corporations and governments embrace and promote the cultivation of moral character in both private sector leadership and regulatory bodies nothing will be solved in eradicating the self-destructive behavior demonstrated by so many individuals and groups in contemporary society.'<br /><br /><object type="application/x-shockwave-flash" data="http://widgets.clearspring.com/o/4ae8d36a3102598f/4bd1f2e9acbda4c0/4ae8d36a3102598f/7ef2e667/-cpid/93d664fc77f4b671" id="W4ae8d36a3102598f4bd1f2e9acbda4c0" width="332" height="270"><param name="movie" value="http://widgets.clearspring.com/o/4ae8d36a3102598f/4bd1f2e9acbda4c0/4ae8d36a3102598f/7ef2e667/-cpid/93d664fc77f4b671" /><param name="wmode" value="transparent" /><param name="allowNetworking" value="all" /><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /></object>Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-49342632929872307962010-04-22T11:55:00.008-04:002010-04-22T16:31:57.945-04:00Further Reform is NOT What We NeedThe battle cry for further reform echoes through the corridors of finance and the committee rooms of government bureaucracies.<br />Not enough Regulation? GIVE YOUR HEAD A SHAKE.<br /><br />Enron et al, Madoff, Robert Stanford, AIG, Bernie Ebbers, AIG, Lehman, Goldman: all were in the headlights of various regulatory bodies for extensive periods of time before being indicted by the various regulatory bodies. It is not lack of regulation--it is the failure of regulators to do their jobs properly that is the problem. If regulators are not able to carry out their duties under the current regulatory system--another layer of bureaucratic entanglements will not remedy the problem that has become pervasive in our society.<br />Indeed, financial reform is needed, but is needed to update a system that has not undergone any substantive changes since The New Deal. Much has changed since the 1930s although the root of the problem has not: A lack of moral character exhibited by many individuals in positions of power.<br />Regulation is a poor replacement for morality but it is the only tool that can be used to maintain a semblance of honesty, accountability and transparency in the financial system. Until corporations and governments embrace and promote the cultivation of moral character in both private sector leadership and regulatory bodies nothing will be solved in eradicating the self-destructive behavior demonstrated by so many individuals and groups in contemporary society.<br />Morality is what is missing not regulation. They are not the same thing--regulation is merely a somewhat inferior substitute of the former.<br /><br />Here is a partial list of<span style="font-size:100%;"> US Financial and Regulatory Agencies</span> <p class="textheader"><a target="_blank" title="This link opens in a new window." href="http://www.ustreas.gov/cgi-bin/redirect.cgi?http://www.cftc.gov/cftc/cftchome.htm"> Commodities Futures Trading Commission (CFTC)</a></p> <p class="textheader"><a target="_blank" title="This link opens in a new window." href="http://www.ustreas.gov/cgi-bin/redirect.cgi?http://www.fdic.gov">Federal Deposit Insurance Corporation (FDIC)</a></p> <p class="textheader"><a target="_blank" title="This link opens in a new window." href="http://www.ustreas.gov/cgi-bin/redirect.cgi?http://www.federalreserve.gov"> Federal Reserve Board</a></p> <p class="textheader"><a target="_blank" title="This link opens in a new window." href="http://www.ustreas.gov/cgi-bin/redirect.cgi?http://www.occ.treas.gov"> Office of the Comptroller of the Currency (OCC)</a></p> <p class="textheader"><a href="http://www.ustreas.gov/cgi-bin/redirect.cgi?http://www.ots.treas.gov">Office of Thrift Supervision (OTS)</a></p> <p class="textheader"><a target="_blank" title="This link opens in a new window." href="http://www.ustreas.gov/cgi-bin/redirect.cgi?http://www.sec.gov">Security & Exchange Commission (SEC)</a></p><p class="textheader">The problem currently encountered on Wall Street have been faced previously--and have been dealt with in an effective manner. Below is William K. Black's testimony to Congress with regard to the Lehman debacle.<br /></p><object height="385" width="640"><param name="movie" value="http://www.youtube.com/v/3-HTylLzXu8&color1=0xb1b1b1&color2=0xcfcfcf&hl=en_US&feature=player_embedded&fs=1"><param name="allowFullScreen" value="true"><param name="allowScriptAccess" value="always"><embed src="http://www.youtube.com/v/3-HTylLzXu8&color1=0xb1b1b1&color2=0xcfcfcf&hl=en_US&feature=player_embedded&fs=1" type="application/x-shockwave-flash" allowfullscreen="true" allowscriptaccess="always" height="385" width="640"></embed></object><br /><br /><br /><em style="font-style: italic;"><em></em></em>Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com0tag:blogger.com,1999:blog-8375175091050207746.post-76188656270058229352010-04-21T14:00:00.001-04:002010-04-21T14:02:02.181-04:00Bill Moyers Journal . Watch & Listen | PBS<a href="http://www.pbs.org/moyers/journal/04162010/watch.html">Bill Moyers Journal . Watch & Listen | PBS</a><br /><br />How did Big Finance grow so powerful that its hijinks nearly brought down the global economy – and what hope is there for real reform with Washington politicians on Wall Street's payroll? Bill Moyers talks with authors Simon Johnson and James Kwak, two of the nation's most respected economic experts and authors of the new book 13 BANKERS: THE WALL STREET TAKEOVER AND THE NEXT FINANCIAL MELTDOWN.Fibocyclehttp://www.blogger.com/profile/05270612148813063514noreply@blogger.com0