HOLY CRAP. Yves Smith is very well versed (and smart). I had no idea you could just issue a trillion dollar platinum coin to the Fed OR cancel their debt! CANCEL THE DEBT THEY HOLD! Wow. That would kick the US Fed & the central banking apparatus in the nuts for all the damage they've done. It would of course spark a massive deflation
Monday's [080811] sell off was pure PIRACY by big players of Wall Street. WASHDC and the mass media hyped fear into investors all weekend long. This was a setup! Then came the quick sell-off [led off of course] by W.S. big players, knowing very well, everyone else would play "follow-the-leader" and sell off their shares in a panic. Then the big players swooped in later buying all the excess shares on the cheap!
Its funny, they mentioned that algorythum program they depend on in tough times.
Just recently it came out that some unknown country was hacking these company's for years, just watching.
Wouldn't it be funny if they learned these algorythums, and found a way to manipulate them to there benefit. Watch quietly for a long time, prep a plan, and then wait for the right time to set it into play.
Funny, first technology takes the blue collar jobs, soon, maybe even the white collar too!
@Louloe -both good points - as far as manipulating algorhythms, you pretty much know that if someone can think of it someone is doing it.And the exodus of white collar jobs will come just as outsourcing manufacturing jobs led to outsourcing of bureaucracy and leech industry white collar work.
Great interview Paul! I think we as people should not be demanding anything. We should intend on changing things and implementing things ourselves! Aside from that I admire your tenacity when it comes to pursuing these issues that interest us all, but very few dare to expose in such an intelligent manner.
Paul said once, when discussing TRNN, that part of being educated about the issues that affect our lives means that we should all be economists of sorts.
When we mark capitalism as the enemy, it becomes necessary that we each hold at least a basic comprehension of economy and an ability to discuss it. Once we're all discussing it in a competent way - against capitalism - most of this keyensian lingo will become obselete. But at least keyensians don't follow "The Invisible Hand."
the markets are like a ponzi scheme... its a zero sum game... it wouldn't surprise me if Obama struck a deal for the implementation of austerity... algorithmic trading is used to steal money from the middle class... one example is mondays pullback, over one trillion was lost...
btw this week is maybe the week that Germany will say stop to this madness , German CDS spiked yesterday to surpass the UK CDS o_O
( it is crazy but it did happened ) OR they may go for the eurobond and then it will be total bliss for the markets , for the people it will be a total nightmare but ho really cares about the poor right ?
@bikos236590 It's not crazy, at least the UK has it's own currency, it can always make payments in pounds. Germany doesn't own it's own currency, it has to tax or borrow in order to spend.
@cheddyrod because the regulations did not keep up with the technology, and now they are doing it, the people doing it have become so rich that they can lobby politicians to keep it.
@cheddyrod Cause it's the 21st century and people use computers now. Also it's a capitalist system where people have the freedom to make educated guesses on where prices should be and put their money where their mouth is
"Also it's a capitalist system where people have the freedom to make educated guesses on where prices should be"
But don't call it an investment system. If it was an investment system you would put your money in a stock, you would not be able to pull it out, and what you get in return are dividends. This would be just as capitalistic, if not more, than our current market, and one can still put their money where their mouth is. Capitalism will work better without artificial volatility
@kmarinas86 Buy a stock and can never sell it? Ha! I think you need to think this through more. Would you extend this idea to other assets? How about allowing the construction of a house but banning its sale (but hey - you can still collect rent)?
It is an investment system (albeit a flawed one since markets aren't perfect). Volatility is caused by fundamental factors & imperfect human perceptions of value (influenced by greed & fear). It can be reduced by decreasing leverage but not liquidity.
"Buy a stock and can never sell it? Ha! I think you need to think this through more. Would you extend this idea to other assets? How about allowing the construction of a house but banning its sale (but hey - you can still collect rent)?"
Say I make a 50% down payment on a home. This would entitle me to 50% (and the original seller another 50%) of any future rents. Then the next owner pays down 25% of whatever is left. He could collect rents too (partitioned from the original seller).
"Volatility is caused by fundamental factors & imperfect human perceptions of value (influenced by greed & fear). It can be reduced by decreasing leverage but not liquidity."
You know what it would also be reduced by? If people would just fucking INVEST. I KNOW that's boring for financial TRADERS and that avoiding such games would mean less financial jobs (read: overhead, cost, interest on debt), yet such would result in BETTER capitalism as each dollar is MORE LIKELY to be INVESTED.
@kmarinas86 Don't fool yourself, "investing" is just another form of speculation (just on a different timeframe). In fact, life is pretty much a continuous series of calculated risks taken by individuals. Some pan out and some don't. If you think that restrictions on the timing of decisions will decrease volatility you're misinformed. It'll just kill valuable liquidity. Markets in inelastic commodities with perpetual supply disruptions are inherently volatile, and emotions & leverage magnify it
"Don't fool yourself, "investing" is just another form of speculation (just on a different timeframe)."
By "invest", I mean put money there permanently. In other words, the time frame I am speaking of is INFINITE. To pull away the "right" to take one's money out would force people to make smarter long-term decisions. People would gain through dividends. Not being allowed AT ALL to pull out would reduce volatility closer to its true inherent level, which is lower than you believe BTW.
@kmarinas86 "the time frame I am speaking of is INFINITE". This is insane. You're telling me that if I invest money in a company (only in an IPO or secondary offering since all trading is banned under your proposal), & I fell upon tough times, that I wouldn't be able to dispose of my shares to pay my bills? Absolutely ludicrous. The inability to dispose of an asset quickly & at a reasonable price decreases value. This would reduce a company's ability to raise capital & reduce overall innovation.
"The inability to dispose of an asset quickly & at a reasonable price decreases value. This would reduce a company's ability to raise capital & reduce overall innovation."
Disinvesting reduces the company's capital. It doesn't increase it. You are saying that ALLOWING one to dispose the shares helps the company to raise capital & increase overall innovation. Yes, the company's "value" might fall, but only because HIT-AND-RUN shareholders will prefer to have the option to pull out.
"I fell upon tough times, that I wouldn't be able to dispose of my shares to pay my bills?"
Where do you think those tough times come from? If it's insurance, energy bills, etc., maybe you shouldn't be risking in stocks! If you were laid off, maybe it is because the market collapsed. And why would it collapse? It's simply really. When the market is AFRAID many people stop "investing"; then they pull out their money! If you ban pulling out then maybe there WOULDN'T be any tough times!
"If you think that restrictions on the timing of decisions will decrease volatility you're misinformed. It'll just kill valuable liquidity."
Nothing kills liquidity faster than pulling it out of the market. So my suggestion is that there be a ban on pulling money out of investment. If such a ban is made, then it is like replacing a reciprocating engine, which is analogous to our current volatile system, with a rotary engine, where all displacements (investments) go one direction only.
HOLY CRAP. Yves Smith is very well versed (and smart). I had no idea you could just issue a trillion dollar platinum coin to the Fed OR cancel their debt! CANCEL THE DEBT THEY HOLD! Wow. That would kick the US Fed & the central banking apparatus in the nuts for all the damage they've done. It would of course spark a massive deflation
ytgv3fc7 7 months ago
All financial advice is bad advice.
1971SuperLead 7 months ago
@1971SuperLead the lack of any financial advice is worse than 1 piece of bad advice
ytgv3fc7 7 months ago
This has been flagged as spam show
its clear we need socialism now
matchbox555 7 months ago
Monday's [080811] sell off was pure PIRACY by big players of Wall Street. WASHDC and the mass media hyped fear into investors all weekend long. This was a setup! Then came the quick sell-off [led off of course] by W.S. big players, knowing very well, everyone else would play "follow-the-leader" and sell off their shares in a panic. Then the big players swooped in later buying all the excess shares on the cheap!
They are Pirates! But they are cunning Pirates!
Bravo, W.S. big Players!
yo1dude1man 7 months ago
Its funny, they mentioned that algorythum program they depend on in tough times.
Just recently it came out that some unknown country was hacking these company's for years, just watching.
Wouldn't it be funny if they learned these algorythums, and found a way to manipulate them to there benefit. Watch quietly for a long time, prep a plan, and then wait for the right time to set it into play.
Funny, first technology takes the blue collar jobs, soon, maybe even the white collar too!
Louloe 7 months ago
@Louloe -both good points - as far as manipulating algorhythms, you pretty much know that if someone can think of it someone is doing it.And the exodus of white collar jobs will come just as outsourcing manufacturing jobs led to outsourcing of bureaucracy and leech industry white collar work.
bnfox 7 months ago
Great interview Paul! I think we as people should not be demanding anything. We should intend on changing things and implementing things ourselves! Aside from that I admire your tenacity when it comes to pursuing these issues that interest us all, but very few dare to expose in such an intelligent manner.
Alberto2382 7 months ago
I love it when Jay clarifies all the acronyms and specific details from the organizational lingo.
pawqmasta00 7 months ago 7
@pawqmasta00
Paul said once, when discussing TRNN, that part of being educated about the issues that affect our lives means that we should all be economists of sorts.
When we mark capitalism as the enemy, it becomes necessary that we each hold at least a basic comprehension of economy and an ability to discuss it. Once we're all discussing it in a competent way - against capitalism - most of this keyensian lingo will become obselete. But at least keyensians don't follow "The Invisible Hand."
egolayer13 7 months ago
This has been flagged as spam show
money = ideological barrier to resources ... we need to abandon it.. all the resources we need are there .. just organize and use them
follow @linktothepast86
ufo5147 7 months ago
Obama has lousy advisors
spleepwalks into stupid electoral strategies
and has no fiber to follow his own instincts
that is for sure
StraussBR 7 months ago
@StraussBR The advisors are lousy because they are bought and paid for.
captcrais101 7 months ago
I wonder what would happen if they made automated trading illegal and required real people to make the trades instead of some automated algorithm.
kawaiigardiner 7 months ago
the markets are like a ponzi scheme... its a zero sum game... it wouldn't surprise me if Obama struck a deal for the implementation of austerity... algorithmic trading is used to steal money from the middle class... one example is mondays pullback, over one trillion was lost...
Kensho
IChoseTheRedPill 7 months ago
"Insanity: doing the same thing over and over again and expecting different results".
(Albert Einstein)
kaxitaksi 7 months ago
this lady clearly doesn't have a clue..
LMIMSsoi 7 months ago
@LMIMSsoi What are your objections to her arguments?
dangerouslytalented 7 months ago
mitworld.mit.edu/video/932
savvysymbiont 7 months ago
btw this week is maybe the week that Germany will say stop to this madness , German CDS spiked yesterday to surpass the UK CDS o_O
( it is crazy but it did happened ) OR they may go for the eurobond and then it will be total bliss for the markets , for the people it will be a total nightmare but ho really cares about the poor right ?
bikos236590 7 months ago
@bikos236590 It's not crazy, at least the UK has it's own currency, it can always make payments in pounds. Germany doesn't own it's own currency, it has to tax or borrow in order to spend.
Cosbibi 7 months ago
@Cosbibi true
bikos236590 7 months ago
Why is algorithmic trading legal?
cheddyrod 7 months ago
@cheddyrod because their is nothing else to do in a zombie economy we live , and bernanke is doing all he can to support this and everybody is happy
bikos236590 7 months ago
@cheddyrod because the regulations did not keep up with the technology, and now they are doing it, the people doing it have become so rich that they can lobby politicians to keep it.
dangerouslytalented 7 months ago
@cheddyrod Cause it's the 21st century and people use computers now. Also it's a capitalist system where people have the freedom to make educated guesses on where prices should be and put their money where their mouth is
bfq3000 7 months ago
@bfq3000
"Also it's a capitalist system where people have the freedom to make educated guesses on where prices should be"
But don't call it an investment system. If it was an investment system you would put your money in a stock, you would not be able to pull it out, and what you get in return are dividends. This would be just as capitalistic, if not more, than our current market, and one can still put their money where their mouth is. Capitalism will work better without artificial volatility
kmarinas86 7 months ago
@kmarinas86 Buy a stock and can never sell it? Ha! I think you need to think this through more. Would you extend this idea to other assets? How about allowing the construction of a house but banning its sale (but hey - you can still collect rent)?
It is an investment system (albeit a flawed one since markets aren't perfect). Volatility is caused by fundamental factors & imperfect human perceptions of value (influenced by greed & fear). It can be reduced by decreasing leverage but not liquidity.
bfq3000 7 months ago
@bfq3000
"Buy a stock and can never sell it? Ha! I think you need to think this through more. Would you extend this idea to other assets? How about allowing the construction of a house but banning its sale (but hey - you can still collect rent)?"
Say I make a 50% down payment on a home. This would entitle me to 50% (and the original seller another 50%) of any future rents. Then the next owner pays down 25% of whatever is left. He could collect rents too (partitioned from the original seller).
kmarinas86 7 months ago
@bfq3000
"Volatility is caused by fundamental factors & imperfect human perceptions of value (influenced by greed & fear). It can be reduced by decreasing leverage but not liquidity."
You know what it would also be reduced by? If people would just fucking INVEST. I KNOW that's boring for financial TRADERS and that avoiding such games would mean less financial jobs (read: overhead, cost, interest on debt), yet such would result in BETTER capitalism as each dollar is MORE LIKELY to be INVESTED.
kmarinas86 6 months ago
@kmarinas86 Don't fool yourself, "investing" is just another form of speculation (just on a different timeframe). In fact, life is pretty much a continuous series of calculated risks taken by individuals. Some pan out and some don't. If you think that restrictions on the timing of decisions will decrease volatility you're misinformed. It'll just kill valuable liquidity. Markets in inelastic commodities with perpetual supply disruptions are inherently volatile, and emotions & leverage magnify it
bfq3000 6 months ago
@bfq3000
"Don't fool yourself, "investing" is just another form of speculation (just on a different timeframe)."
By "invest", I mean put money there permanently. In other words, the time frame I am speaking of is INFINITE. To pull away the "right" to take one's money out would force people to make smarter long-term decisions. People would gain through dividends. Not being allowed AT ALL to pull out would reduce volatility closer to its true inherent level, which is lower than you believe BTW.
kmarinas86 6 months ago
@kmarinas86 "the time frame I am speaking of is INFINITE". This is insane. You're telling me that if I invest money in a company (only in an IPO or secondary offering since all trading is banned under your proposal), & I fell upon tough times, that I wouldn't be able to dispose of my shares to pay my bills? Absolutely ludicrous. The inability to dispose of an asset quickly & at a reasonable price decreases value. This would reduce a company's ability to raise capital & reduce overall innovation.
bfq3000 6 months ago
Comment removed
kmarinas86 6 months ago
@bfq3000
"The inability to dispose of an asset quickly & at a reasonable price decreases value. This would reduce a company's ability to raise capital & reduce overall innovation."
Disinvesting reduces the company's capital. It doesn't increase it. You are saying that ALLOWING one to dispose the shares helps the company to raise capital & increase overall innovation. Yes, the company's "value" might fall, but only because HIT-AND-RUN shareholders will prefer to have the option to pull out.
kmarinas86 6 months ago
This has been flagged as spam show
@bfq3000
"I fell upon tough times, that I wouldn't be able to dispose of my shares to pay my bills?"
Where do you think those tough times come from? If it's insurance, energy bills, etc., maybe you shouldn't be risking in stocks! If you were laid off, maybe it is because the market collapsed. And why would it collapse? It's simply really. When the market is AFRAID many people stop "investing"; then they pull out their money! If you ban pulling out then maybe there WOULDN'T be any tough times!
kmarinas86 6 months ago
@bfq3000
"If you think that restrictions on the timing of decisions will decrease volatility you're misinformed. It'll just kill valuable liquidity."
Nothing kills liquidity faster than pulling it out of the market. So my suggestion is that there be a ban on pulling money out of investment. If such a ban is made, then it is like replacing a reciprocating engine, which is analogous to our current volatile system, with a rotary engine, where all displacements (investments) go one direction only.
kmarinas86 6 months ago
This has been flagged as spam show
@cheddyrod
Your Q: "Why is algorithmic trading legal?"
My A: " Free market = If it feels good, then do it."
kmarinas86 7 months ago
an apple does not become 2 apples over time unless you got the damn appletree. get out of wallstreet u bunch of gamblers.
nach mir die sinnflut mentality . bunch of profit driven bullshit.
lllraverslll 7 months ago
@TheTitsillator what gap would that be? 60 minutes (as mainstream as it gets) reported on this phenomenon more than a year ago
BroBroDude 7 months ago
its awesome that you can get filthy rich while most people get poorer and poorer.
vdubs4life1964 7 months ago
@vdubs4life1964 for real, I keep finding stuff for real cheap and selling it off for a profit.
screwopenborders 7 months ago