If you pay me more than [ I / it] is worth, I do it / you may have it.
If I pay you more than [ you / it] is worth, you do it / I may have it.
the exchange of number for thing is its own paradox
Why do we ever achieve coordination, or do we?
Category: econocaste
economics .. the short version, since the long is wasted on the young
Leverage
Enter the LeverAge. Risk as a reward mechanism.
Turning others money into your loan guarantee, as collateral to borrow 20 or 40 times your assets. Do this in a way that to make it appear as an asset class, and you get to call yourself an investor. Otherwise you are just another fool in big debt.
We have turned the leverage down since summer. Wall Street is issuing proclamations about their reduction, about the deleveraging they have done. How much they have unwound.
Leveraging is a finance term, not one used by policy and budget types, but consider the US debt, the stimulus package is a leverage of less than ONE. Currently the best of big Wall Street brag about a leverage of 15 to 1. If our best firms were running the government, we would indeed be in dire straits. Remember, the leverage of the Financial Fiasco has used up, vaporized, more than 55 years of global domestic product. This was power, more power than the market could manage. The children of shipwreck island couldn’t do anything but light the fuse. They had no way of knowing what would happen. Now we all do. Again.
Schizophrenia Or Just Stupid
America hates foreigners. We use them as an example of failure.
We stand on the brink of being turned into France, or Canada.
These same americans defend the right of Sovereign funds to invest in our basic vital institutions.
Saudis are convinced American banks are the best place to invest.
Yet wring, rant, shriek about their own government investing in anything, even education. Well of course some things are okay to invest in, say bullets, bludgeons and bombs. “Yes We Can”, for the killing field. “Hell no we won’t go”, for the skilling fields.
This morning paper brings another crap in the soup of state. For weeks, months actually, the commentariat of CNBC-FOX, have made much of the cloud of Obama. The cloud has settled over the heros of Wall Street. like the cloud in Lil Abner that brings gloom without rain. The Republican House uniformly, accompanied by the bulk of their Senate collaborators, have blamed much on the stimulus plan, seemingly prepared to reject everything as heartily as they once accepted Bush as our savior, our everything.
The Dow tumbles yet another day in response to the stimulus plan. The market has rejected Obama’s (whatever) plan.
So the irony of black and white, the stupidity of expectation, the schizophrenia of Wall Street today appears in this form
Bounce on Wall Street because of the Chinese stimulus plan.
Hooray for the Chinese. We need some more of that Ni hao, know how, right now. Perhaps the only success remaining to America will be found through off shoring. Decoupling hell, we clamp onto whichever country we can to save us. After all we can always blame it on them if it doesn’t work.
You must be logged in to post a comment.