... I like Fast money, mostly for sentiment.
One of the interesting things was in an argument with the new economic adviser Laura Tyson, where everybody seemed to be blaming everyone else for circular logic.
I'm not taking sides, but I've always seen; not only our financial system, but our whole economic system as Socializing the risk and Privatize the profits. What do we think the reserve is for? That is what Supply side economics is. Roads are only Free because it decreases transportation costs for goods and services. Every time we use government to "stimulate business" We Socialize the cost, and privatize the profits. This is what we do.
Regardless of the "FreeMarket" bullshit Traders talk... there is no more honest statement made than by Jeff Mackey after Lehman Failed "The Treasury INTRODUCED 'Zero' as an option in the market"
It has always been "understood" by the market *wink wink nod nod* that many companies were "Too Big To Fail".... It is still Mind blowing that somehow, Now it's Socialism and bad.
Again, I'm just here to make money... but this constant declaration of "Capitalism is dead" reminds me of all the anarchists who are always decrying how we don't really live in a Pure Democracy so they don't vote.
Monday, November 24, 2008
Fast Money, Shark Jump
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2 comments:
Zero is an option. LEH went to zero, but Citi is too big to fail (TBTF). Stock prices plummet until the last minute, then are "saved." Citi's CEO, "Mr. Vikram", can lie day after day, just like Dick Fuld did and yet we save Citi but not LEH.
How can investors sort out the mess? Nobody will put capital at risk as long as the rules are unknown and actions of the Treasury seem arbitrary.
My point is to point out the inconsistency in reasoning.
If you don't know, Alice in wonderland is about Logic problems.
When you see a logic problem, it's an indicator that it's not "Reality" they are seeing it's a Rorschach test.
but the real question is which way is it in reality.
One of the huge problems with economics is that it just isn't a science and the test samples are so small and the variables are so numerous.(this means it ends up being more a religion).
The panic IMO has nothing to do with "Rules" "Transparency" or "consistency".
The problem is that wall street was caught in their own trap. Now they want the rules changed. As opposed to the Beating that all the tech companies got in 2000. Where every tech company went to 1 If they had debt, they were crushed.
Now they want it to be different when it's "Wall Street"
I'm not taking sides, but either the system is broken and needs to be changed, Or the financial system should just be destroyed, That would be consistent.
What we will do, is Protect the "Shell Game", And pretend that the rules are just different for the "Financial system".
If anyone has ever believed in TBTF, or FED rate cuts. They aren't pure capitalists....
But the net result of Capitalism is feudalism, as assets become consolidated by the few.
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