Monday, June 1, 2015

Dampening the magical multiple

Moral: Wherein we drop the first of several hints.

One step toward a more balanced financial situation would be the following:
    Take some of the computer power that is being "wasted" on algorithm (and high frequency) trading and apply it to lowly bookkeeping (databasing). 
    That is, each financial entity would be addressed and tracked, individually. That is, for the millions of stock for a company, we would track the sale history of each item (piece of paper). 
    Oh, that would lift the transaction details so that we could see a history of who bought and sold? 
    The goal would be to remove the cheshire multiple's gaming effect which started before automation. At that time, the current peanut-butter way was all that they could do. 
    Since computation has come on the scene, it has basically been applied to serve the 1% (and less) in gaming the system rather than to do a proper accounting. The progression of increased assists by computing during the past thirty years can be related strongly to the emergence of troubles that are far more complicated than we saw in the earlier markets. 
    Vested interests argue for their necessity (job security in the longer term) of their convoluted schemes (say, dark pools). Do we need those who are big takers (say, upper east siders)? Do they not see the riches acquired via gaming the markets as an entitlement specifically for them?)? 

It is too revolutionary to (attempt to) do a proper accounting from the beginning? Can we say that the markets have not devolved with a continuation of age-old gaming the influence of which has worsened the economy? Is the bifurcation of haves and have-nots of an essential nature?


What is the cheshire multiple? Magical multiplierLet them eat cakeBeyond your wildest dream.

Remarks:  Modified: 07/22/2015

06/08/2015 -- Yes, the underwear of the benefact'ees of the bifurcation is showing. No, they're not naked; their exploitative ways are very much skyclad, though.

06/18/2015 -- We have to see how this insanity got its start. Then, we'll see why most do not get their money (the value is strained out daily by those who run the game). Everyone, it seems, has bought into the game (but, we're not tilting either at an illusion - despite having used chimera).

07/12/2015 -- We saw a couple of things today that did damper. First, we saw companies (very many) in China stop trading on their stock. How can this be legal? However, it does suggest that the real buying and selling of securities ought to be handled by companies (yes, they would bear the cost). That is, get rid of the fat-cat middlemen. Second, we saw the NYSE's computer go down. For hours. That halted a downward slide. Very effective, as the traders had to cool their heels. ...

07/22/2015 --  On the Google pop the other day after which the press has gone on and on, and on and ..., about the $billions increase: a very small amount of shares outstanding were involved in the activity that caused such an increase. ... Ought we use, priming the pump? Getting the suction going so that the pockets of the hapless are (will be) emptied? ... Not picking on Google; it is just that they make a good poster boy for this issue (of which, the Fed is (has been) an enabler).

07/24/2015 -- Last night, we had an Amazon pop based upon activity of about 10M shares out of 500M (about) outstanding. Then, we have the media bragging about the Jokester's big payday (which would require him to be able to sell at the price) all day. These little games would be okay if they did not help preserve the less than 1%'s ability to suppress the remainder. See Remarks (this day) about the incident.

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