Financial topics

[aedens]

http://bnarchives.yorku.ca/336/02/20120 ... r_rwer.pdf

[jcsok]

A few weeks ago, several postings noted that managers are hiring incompetent subordinates; and basically competent people quit or are fired.

This morning an employee of mine told me a story about his grandson. My employee (grandfather) is a highly intelligient, competent employee. A few months ago, grandson secured a highly paid job that required little knowledge or effort. At that time, my employee (grandfather) told me that he knew grandson wouldn't be able to keep the job very long. Apparently grandson told his boss(1) that boss(1) was an idiot related to the way things were done. Next up boss(2) was consulted. During discussion, Grandson told big boss(2) that big boss(2) was an idiot for retaining boss(1) because of the way the business was run. Guess who was fired.

[aedens]

Larger geocorp have learned that pitting two or three zones intercompetion is a non starter long term "human capital"
I guess to be simplistic a chess board has x amount of squares and groups are segmented to black
or red positions for there own good even is they see it or not, later they may.

[Higgenbotham]

For some reason, I am getting a crash vibe tonight. I believe the stock market may crash from this closing high, similar to how the May 29 closing high started a downdraft but that wasn't the real crash just yet.

That wasn't it, but as of the close today the market has traced out a clear topping pattern that seems lke it could result in a crash. I'll post more on it if the market turns down from here as there are a lot of interesting things in the chart.

[aedens]

Exposition of Levels and Rates of Change.
Hinted was exhaustion curve.
Crash, yea wages and reality
Wasting process = deflation
Why, Utility as what puts you at ease to survive.
Go ahead, start a business and they will suck you dry
and just stop by and do the oh by the way pay this
because I was asked to by degree of separation
to eliminate your market base for this cycle upcoming.

[Higgenbotham]

Go ahead start a business before you even buy inventory
and see what the Beast has to say. Good luck pilgrim

The year was 1993. 3 former associates approached me about starting a business to process corn into nacho style chips. The two younger guys wanted to front everything with the city. The city told them if you start this business you will need to purchase a $10,000 sampling tube to sample effluent (sewer discharge) and we supply the tube. The older guy and I were told this. I knew how to clean up the effluent. We could clean it up to far less than household levels with $5,000 worth of equipment. So I looked at the older guy and said if we start this business of course we want to clean up the effluent and we know how to do that but we will need to start off by running everything at night for awhile until we build up sales. Then later when we have established sales we can start operating during the day and buy the tube. He nodded agreement. That was basically the end of the discussions.

[OLD1953]

Some cat, ani and a settling tank does for most of it. Wrote a program to monitor and control feed rates for that type of equipment once upon a time. Upset NALCO chemical no end, since it actually cut costs.

To recognize suppression of speech or anything from left and right, you have to be aware they use utterly different methods. The left usually goes for a bottom up approach, trying to instill a distaste for certain items or words, and tries to spread that into a mass movement. The right goes for a top down approach, usually not visible to the average joe, where they move (promote) influential individuals out of visible positions to less visible positions, investigative reporters get assigned to covering the Hollywood beat, etc. So the left is fairly obvious in their tactics to suppress undesirable speech, the right is generally sneakier about it, save that some just can't keep from bragging about their moves. This is and has been the common pattern in the US at least since the Civil War and probably before. Attempts to control the public discourse generally peak shortly before the runup to the crisis begins. The 1998 communications act was certainly a capper in these movements (if you recall, the PC push on college campuses was reaching a peak at that time as well) and the final runup to the housing crash started shortly afterwards.

Vince, if we assume the EURO will survive, then perhaps printing physical EUROS would be a good thing overall. At least there would be SOME money in existence after the electrons go to zero. But I seriously doubt this is happening on any scale large enough to be noticed. This is, and has been since 1600, the age of debt and will continue to be so into the future for some time yet.

The great push for the future will simply be this, an end to fear. Fear of losing a job, fear of being homeless, fear of starving, fear of war or oppression or being damaged by action of government or corporation or crime. Any politician who wants to be elected now would be wise to speak of ending fear. This is the time and the season for such matters to come round once again.

Just MHO, but I think we'll see markets moving downwards generally for some time now. There will doubtless be widely ballyhooed upticks, but the trend overall is going to be down.

In re that economics review article, it's very much worthy of note that listening to people griping about government for a while reveals an interesting fact, they are often complaining about things done by corporations, not government per se. There is a great dichtomy in American thought that separates "business" as good and "government" as bad, so many things forced upon us by corporations are derided as government, even when it's not. As many such divisions do, this one will one day reverse itself and probably quite suddenly, so that business will be "bad" and government will be "good". Such simple divisions are rarely accurate in even the broadest terms, but are very attractive to the public overall.

[vincecate]

Vince, if we assume the EURO will survive, then perhaps printing physical EUROS would be a good thing overall. At least there would be SOME money in existence after the electrons go to zero. But I seriously doubt this is happening on any scale large enough to be noticed. This is, and has been since 1600, the age of debt and will continue to be so into the future for some time yet.

If the value of electronic Euros go to zero the value of paper Euros will too. Banks exchange electronic and paper one for one. Early on printing money lowers interest rates (robbing retirement funds) and lowers the velocity of money. But done long enough it raises the inflation rate and eventually the interest rate and velocity of money. In the standard hyperinflation there is lots of debt bought up by the central bank for new money. Debt and hyperinflation go together, they are not opposites.

[vincecate]

John and I and many others have long thought a market crash was coming. Recently Mish posted that there are 12 signs a new recession is starting. Hussman says that the market conditions are in the worst 0.5% of historical situations, could crash. Higgie says it seems like crash is near. I have lost what is for me a fair amount over the last 2 years buying puts on S&P but I did so again today. I sleep better knowing I am ok if things crash. Like I sleep better owning gold and silver. So it is kind of sleep insurance, even if I don't make money on it it is not really a total waste.

http://globaleconomicanalysis.blogspot. ... ed-or.html

http://www.hussmanfunds.com/wmc/wmc120618.htm

[aedens]

never mind learn the hard way. http://www.hurriyetdailynews.com/turkey ... sCatID=419

It went hot two weeks ago but the history books are not written yet. No aliens since this is Krugman reference.
http://www.amazon.com/Margin-Safety-Ris ... stor+forum

5 new from $1,690.00 25 used from $725.00 1 collectible from $2,499.00

If interplanetary visitors landed on Earth and examined the workings of our financial markets and the behavior of financial market
participants, they would no doubt question the intelligence of the planet's inhabitants. Wall Street, the financial
marketplace where capital is allocated worldwide, is in many ways just a gigantic casino. The recipient of up-front fees on
every transaction, Wall Street clearly is more concerned with the volume of activity than its economic utility.

Thats right, some understand how to screw you .. Honest men cannot be. Yea some read...