Tuesday, March 22, 2011

Sandbox, again

Moral: Wherein we remind ourselves that we need a sandbox to constrain risky (sandboxy) behavior and to introduce some concepts from the test engineer into the handling of our beans (and bread). Does the aura of mathematics and modelling make it less ad-hoc?


Big Ben likes to sack savers. He has had his hand in our pockets for years now. Having fun with that, big fella?


One of his guys, Richard Fisher, says enough coddling of the fat cats. Thanks, guy. Will Big Ben ever listen to you?

Richard says that he see evidence of speculative thinking. What? Heck, Richard, it never left, and, since we let the genie out of the bottle the past 1/2 century, it has only grown.

Hence, anyone thinking about how to get these 'gamers' into some type of corral? By the way, Warren, you could help.


So what does all that above mean? Well, here is some metaphor-laden garble from the leading, supposed, thinkers in finance. Too, notice the use of concepts related to gambling. At the same source, we see news about Warren's recent gains (with 'bet' in the title).

Is this business or ca-pital-sino? And, we all know that gaming is zero sum, not near-zero (except for a little public good from taxing the house, perhaps).

By the way, if the casino were to be corralled into a sandbox, what would be left? We'll need to look at that type of thing further.


Shilling: The stock market is rising because the Fed's free money policy is making the stock market rise, Shilling says. But the economic recovery is much less than meets the eye: Wall Street is doing well, while the rest of the economy suffers, and the critical housing sector is still a mess. So the stock market's run won't last forever.


10/30/2014 -- Where are we? For one, let's talk how most are losers, okay (due to idiotically applied multiples)? This can be ignored when their reality is pushed outside of common awareness. So, we have the top tier (0.001 or less) gaining under the present scheme (even with it being stopped, QE, that is, the latest of it). The other? Dire straits, indeed. Yet. the talking heads chase the DOW daily, as if it has meaning (ah, why this?).

03/22/2013 -- GW at ESPN (see image on right) has a nice point of view on the madness (and related comments). We ought to have something similar for the financial folks, using play money, with prizes. That's the sandbox, folks. Then, the real stuff would be handled by mature, stable adults (not the greed ridden - and similar ilks -- okay?). The madness has to do with animal spirits just like the market (ala Adam). Too bad that one loss gets one out the door. Perhaps, at the final four level, there ought to be a round robin, like college baseball. --- Now, having just written the above, this glorious bit of madness is really a sham (see comment at madness, 03/12/2012). The whole madness pits kids against each other, who are playing for naught (comparatively), being coached by millionaires, with big buck media behind the affair, and a bunch of other lucrative ploys benefiting from the labors of the few. If one looked at qualities (as in, abstract out a truthful look at this), one could find parallels (many, many) all across history (these things being not consider our best behavior). Granted some (as in, not all) of the kids go on to big bucks. Others find glory in their endeavors (what would be be without school spirit?). Yet, besides the commonality with historic events that aren't looked at as being our (humankind's) best moments, there are all sorts of analogs in business (which we've seen of late, in glorious detail, as being problematic at its core - the heart that is supposed to be related to finance). By the way, see the below comment (madness, 02/08/2013); that particular team ended up with a #1 seed.

09/14/2012 -- Ben just gave them, the runner amok'ers, the store

08/30/2011 -- Essentially, we have financial piracy.

04/04/2011 -- Tis tranche and trash. Need to look at some background.

03/28/2011 -- See 03/24/2011 Remarks (1/2 rant) and on March madness.

Modified 10/30/2014

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