Monday, May 6, 2013

Gigantic sucking sounds

Moral: Wherein we consider the benefits of social business (not Zuck's realm), the chimera's loud calling, and more.

The subject? Back in the days when inter-border (USA and its southern neighbor) economic relations were being discussed in terms of allowing more flow (yes, are the benefits as good as we were told that they were going to be? -- massive influx of undocumented?, ...), some argued about things being sucked south (say, jobs).

Well, what we have now is this Wall Street thing (the Wall being used to represent, basically, market-oriented activities that are, many times, not necessary) which is growing quickly while sucking value from the pockets of the hapless, such as savers (and many others).

Why Yunus and the chimera in the introduction?


Well, it's not that Yunus is a saint, yet he knows more about what business is (ought to be) all about than do many from western cultures. Yet, it's those latter that we have to deal with in our western world. Alas.

Chimera? The large sucking machines are getting a lot of attention, more than their problematic basis (to wit, ca-pital-sino) suggests is reasonable. It's an arguable point, of course. But, how can Ben continue to trash the lives of so many folks?


Who are these folks that Ben has thrown off the train? Consider these two types, please:
  • Profligate - works, but spends more than is made; the difference is handled by debt which increases with each stroke of the clock. At what point is the debt paid? As we've seen, many have had their debt forgiven and paid by banks (reimbursed the pockets of taxpayers). But, many more have not had their debt paid, and it is still there when they croak. Again, at that point, there may be creditors losing out, yet the person's estate suffers, too (nothing for the dependents and so forth). 
  • The non-profligate - works, spends, but less than income; the difference goes into savings (either for a rainy day, for a major purchase, or for the later years -- all sorts of ways to characterize this). Yet, to what (where) does that extra money go? The mattress? Gold (even with this, where is it stored?)? Ben (thanks, guy) has fed (pun intended) the mechanisms that do the gigantic sucking. For what reason, I'm still puzzling. His publishing the talks from last year does not explain much (see my notes, please, Ben). 
Of these types, which is more important to an economy? Notice, please, they both spend. The former does so way out of proportion to what can be paid back. Is that something that we would want all to do? Who would pick up the tab, ultimately? 

The major problem is that Ben has closed off any access to means for the latter (the non-profligate, Ben - those whom you do not seem to know even exist) to put their savings that has any semblance of "gain" (as Ben, evidently, wants, mainly, the ill-begotten type). The thing that Ben wants is for all of us to play the casino (yes, why not add russian roulette, Ben?) that gets such attention every business day (media up the wazoo, all day). 


In terms of magnitude, Ben is into the pockets of savers for billions. How do we get a proper accounting of this (note the take on Jamie way before he got in a hot seat)? And, he says that he'll continue (or even up the ante) for years more.


03/15/2015 -- Finally, getting around to the pending business.

05/22/2013 -- Need to look at the cosmology of business (Remarks this day).

05/09/2013 -- Ben needs to take off the training wheels and let the markets go where they may (falling mode, most likely) and let the seniors have a little stability (Slapped silly, again, yesterday).

05/07/2013 -- So, those two categories (profligacy focus, motivated by the Biblical story) are a broad-brush look. Of course, there are all sorts of nuances which (by the way, I can handle; if anyone has any doubt, deal with me directly) need a look. [Aside: you see, the push to differential (stochastic) systems comes from the inherent complexity (which has been overdone, okay?).] Debt, in itself, is not bad, especially if it's tied with collateral (and I don't mean those fantasies behind some higher-order finance - sheesh - abstract'd synthetics). One can even think of leveraging (a natural state of affairs as we learned way back with the Greek mind) in a rational sense in the context of liquidity. Yet, there are two other concepts that are apropos: source and sink. Debt? It's more of the latter. Except, the way we saw the idiots use houses as ATMs (and all sorts of parallels exist here, folks - Hawker comes to mind - recent bankruptcy, etc. [I had an upclose look, closer than many, okay?]), debt does put money into the pockets of some. Government deficits do this, too. They extract from sources. What Adam was suggesting was that spirits are natural sources (actually, this whole area is where I can weigh in with a newer theory - in time). But, we don't have perpetual motion (look finance smarties, be a little more thermodynamic, please) anywhere (again, big M and T come into play here). The truth? We cannot have sustainability where we have more sinks than sources. Jamie? Your ilk are sinks, okay. You don't have to be, but this is how you have been allowed to evolve. Let's get theme memes back in order, folks. ... Later.

Modified: 03/15/2015

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