Financial topics

Investments, gold, currencies, surviving after a financial meltdown
aedens
Posts: 5211
Joined: Tue Nov 04, 2008 4:13 pm

Re: Financial topics

Post by aedens »

Higgenbotham wrote:
aedens wrote:The article below brings balance in a Chocolate Starfish And The Hot Dog Flavored World. For those who have multigenerational conversations at home we laugh and just another hot dog - livin´it up. I enjoy the dialog and links all provided. Also the tireless work John.
http://transcripts.cnn.com/TRANSCRIPTS/ ... ps.01.html
RUBENSTEIN: We typically get 20 percent of the profits...

Third, I - I don't really set the - the rules about what income will be...

We typically get 20 percent of the profits.
Uh-huh. No shame.
http://ec.europa.eu/internal_market/con ... per_en.pdf
closed economy - open economy

For HFT there are concerns that not all high frequency traders are currently required to
be authorised under MiFID.

OT but in vein:
At the end of day we know who ended up with the lipstick on. repo's are titled as much as string thoery is IMO

Meanwhile: http://www.ritholtz.com/blog/2012/01/oh ... um=twitter

Productive Taxpayers pushed to the reality of insolvency of locality we trend are just battered with obfuscated invisible adversaries
IMO dispositional cultural realities linked earlier in relationships to finance complex compromises ongoing.

http://www.nytimes.com/2012/01/23/busin ... &ref=world

As many do forward over such a long time that the more people who do not require the protection of governmental power the
improvements are obvious. There can be only one permanent solution of a moral one.
OLD1953
Posts: 946
Joined: Tue Aug 11, 2009 11:16 pm

Re: Financial topics

Post by OLD1953 »

At times I've gotten some real laughs out of job postings on some of the various career sites. Jobs that want an experienced network engineer with cisco and juniper experience, who also knows both exchange and SQL, with programming experience and who can also repair satellite communications equipment plus do engine repair on generators - yes, I really saw one similiar to that. And I really doubt they were paying what such a paragon would deserve, which would be in the neighborhood of 500K per year, given they wanted expat work with 72 hours per week on station and on call the rest of the time in Afghanistan, living in tents and communal showers/facilities. With extensive travel in country, BTW, did I ever mention that travelling there is what usually gets you killed? I do expect they'll always have trouble filling that position, no matter what the economy does. There really are jobs you can't fill, but they usually aren't very realistic job requirements/situations.

Very likely they'll fill that with three people from India with the requested skills, then whine to Congress about how Americans don't want to work and aren't properly trained.

You'll have to excuse me this morning, I'm a bit irritable over a very weird article discussing some of Steve Job's statements about Apple production methods.

http://www.nytimes.com/2012/01/22/busin ... wanted=all

That's well worth reading from an employee POV, Jobs apparently had some weird ideas about the ideal employee.


A few curious quotes:

“What U.S. plant can find 3,000 people overnight and convince them to live in dorms?”

(Shall we add "for low wages and working 12 hour shifts seven days?". This is made perfectly clear in the preceding paragraphs.)

In particular, companies say they need engineers with more than high school, but not necessarily a bachelor’s degree. Americans at that skill level are hard to find, executives contend.

(OK now, just what are we calling an "engineer" here? Whatever these guys are, and I suppose they are some kind of technicians, they aren't recognized as engineers by anything like ASME. A LOT of this "shortage" business is simply credential creep unrelated to the job they want performed just because the job is in the USA and the company demands total control, instead of just doing the job. Micromanagement and CYA are the bane of everything. Calling anyone an engineer in the US who doesn't have a bachleors degree at minimum will likely result in a lawsuit from the engineering society.)

The Chinese government had agreed to underwrite costs for numerous industries, and those subsidies had trickled down to the glass-cutting factory. It had a warehouse filled with glass samples available to Apple, free of charge. The owners made engineers available at almost no cost. They had built on-site dormitories so employees would be available 24 hours a day.

(I thought there were laws against that type of international gouging?)


And anticompetitive hiring agreements between companies.

http://www.huffingtonpost.com/2012/01/2 ... 20244.html


(To be absolutely clear here, I never liked Jobs, nor his pricing practices, his goofy lawsuits like the "we stole the windowed OS idea from Xerox Parc first, so Microsoft can't possibly produce a windowed OS of any kind" suit, his general attitude of "I'm right and you aren't" and on and on. As far as I'm concerned, Apple was full of worms from the Apple III "walk on me" board on. http://www.dvorak.org/blog/whatever-hap ... apple-iii/ )

Everything I've read, and that includes a lot of stuff from Apple and others, says to me that the big electronics companies wanted Chinese production facilities where they had quality control, but wanted to just wave the baton after delivering a blueprint. In the US however, they demanded owning their own facilities, and wouldn't dream of relinquishing control over any part of the process. Different situations will produce different results, and they certainly set up different situations.

So what could destroy this bit of arbitrage (for arbitrage it most certainly is)?

Natural disaster could do it, but that can strike anywhere. However, floods in Thailand certainly caused problems with hard drive production and flattened PC sales recently. So much interlocked production in such a small area - putting all the eggs in one basket is the old saying.

Epidemic disease - Asia has a real problem with this one. While the US has it's own issues, crowding in Asia is MUCH MUCH worse, and the more crowding the greater the probability of epidemic disease. A major epidemic on the order of the Spanish Influenza (normalized for greater populations) would devastate both the population and the industries relying on this population for workers.

War - perhaps the most likely of all, civil war, war with India, with Taiwan, with South Korea or with Iran or Russia could break out at any moment. Any of those could draw in the US, or we could sit on the sidelines, but ANY of those wars would destroy the entire computer/cellphone/chip industry that has been built in that region. Or cause denial of delivery for war reasons or cause the factories to retool for war production or cause the US to sanction China - all would have the same result on the US side of the pond.

Terrorist Acts - unpredictable but highly likely, though the results would probably be limited to one factory or region unless biological agents were used. I guess we can lump worker action/sabotage in with this category.

So what's the result to the USA of any of these occurances? Immediate collapse of the retail industries depending on these production facilities, government actions of many sorts, companies begging for bailouts, etc. I suppose it would be the trigger for the crisis, so we'd actually get action, not just jawboning.

I would suppose that govt funds and huge amounts of labor would be poured into building and renovating production facilities in the USA. Credential creep would be a thing of the past, if you MIGHT be able to do the job you'd get a chance at it. Plus the older and experienced hands would be in demand as trainers and shop leads, not cast aside as "bad investments". It would take at least five years to get this going, longer if the US joined in a major war.

We do know the crisis will most likely hit from an unexpected direction, and this would be one direction where nobody seems to be looking, at least not in public. I have wondered how much such concerns are driving the movement of facilities away from Asia.
Higgenbotham
Posts: 7999
Joined: Wed Sep 24, 2008 11:28 pm

Re: Financial topics

Post by Higgenbotham »

aedens wrote:
Higgenbotham wrote:
aedens wrote:The article below brings balance in a Chocolate Starfish And The Hot Dog Flavored World. For those who have multigenerational conversations at home we laugh and just another hot dog - livin´it up. I enjoy the dialog and links all provided. Also the tireless work John.
http://transcripts.cnn.com/TRANSCRIPTS/ ... ps.01.html
RUBENSTEIN: We typically get 20 percent of the profits...

Third, I - I don't really set the - the rules about what income will be...

We typically get 20 percent of the profits.
Uh-huh. No shame.
Productive Taxpayers pushed to the reality of insolvency of locality we trend are just battered with obfuscated invisible adversaries
An example of all the jobs private equity created.
http://www.youtube.com/watch?v=_UTGh5iM ... e=youtu.be
While the periphery breaks down rather slowly at first, the capital cities of the hegemon should collapse suddenly and violently.
aedens
Posts: 5211
Joined: Tue Nov 04, 2008 4:13 pm

Re: Financial topics

Post by aedens »

Nothing will it change since why would they even think there is a problem?
They consider 99% under 99IQ
(I thought there were laws against that type of international gouging?)

Yes consumers who can think. I own no apple products. Period
As many do forward over such a long time that the more people who do not require the protection of governmental power the
improvements are obvious.
Last edited by aedens on Mon Jan 30, 2012 7:19 am, edited 1 time in total.
OLD1953
Posts: 946
Joined: Tue Aug 11, 2009 11:16 pm

Re: Financial topics

Post by OLD1953 »

For any device more complex than a light or an alarm clock, I don't know where you'd go to get one entirely made in the Western Hemisphere, much less in the USA. It would be pretty much impossible to build any computer with parts sourced solely from the US.

The problem with Chinese government and industry is that nobody can compete with that level of support from a government. That is already cutting back, but the US was nearly burnt to the ground while our Congress fought over terms and philosophy instead of actually LOOKING at the problem. A free market philosophy is doubtless a noble thing, but the FACTS ON THE GROUND are paramount, and the absolute fact is that no free market ever has or ever will exist in any functioning society. (Will you ever sell pork in the MidEast? Or in India? Is it free market if you restrict trade for any kind of moral or ethical or health or safety reasons? Of course not!) The philosophy discussion should have been carried on with apertifs somewhere, not as a debate over law.

What really gets me irritated is what Jobs and most of the others actually want, as evident from their actions. They want the near slave labor and free education of a highly socialist/communist society, but they don't want to pay for any of it. So the people of the US paid, in jobs and balance of trade. Given that the money was offshore, Apple got to keep it there and pay no US taxes on it as long as it stayed in China or outside the US. So more and more factories were built in an unending cycle.

China was happy to take this deal, the government and the people both got paid for it. The deal is about over in China, already there are complaints about the high price of Chinese "engineers" and the wages have gone up 15% a year for over a decade.

Wonder how long it will be before we start hearing about those wonderful "engineers" in Africa?

And no, I don't own anything from Apple, I don't believe I've ever owned anything from them.
Trevor
Posts: 1255
Joined: Tue Nov 15, 2011 7:43 am

Re: Financial topics

Post by Trevor »

One interesting thing that I did read was that many business actually got started during recessions. At first, I didn't realize why, but I suppose it makes a certain amount of sense. When there's a recession, some go out of business, this clearing the road for others to take over.
aedens
Posts: 5211
Joined: Tue Nov 04, 2008 4:13 pm

Re: Financial topics

Post by aedens »

The race for parity and free floating currency has limped along since the chicago boys went to south america. Nafta was subsidy for left leaning nations and on, and on. Many do not see what we can do when pressed as before and as we know they just want to vacuum up all IP without any regard at all. I am under the shadow of doubt the capture top down can see or wishes to but that is another matter.
Last edited by aedens on Mon Jan 30, 2012 7:19 am, edited 6 times in total.
Higgenbotham
Posts: 7999
Joined: Wed Sep 24, 2008 11:28 pm

Re: Financial topics

Post by Higgenbotham »

Trevor wrote:One interesting thing that I did read was that many business actually got started during recessions. At first, I didn't realize why, but I suppose it makes a certain amount of sense. When there's a recession, some go out of business, this clearing the road for others to take over.
There's another reason. By way of illustration: I graduated engineering school in 1983. There wasn't much hiring going on then at all. Some of the top students (and the most personable) were picked up by places like P&G and IBM who can always afford to do some hiring and can take advantage of the glut of good candidates. A disproportionate number went on to graduate school.

Anyway, there was a guy who lived on the floor above me in the dorm - I knew who he was and that's about it. He was an electrical engineering major and he got into a graduate school program but really didn't know what to do. He decided to start a computer hardware business - it had something to do with networking computers. He sold it for something like $4 million when he was about 30 and started another business before the Internet boom (say around 1994). This company became nationally recognized and was sold for about $1 billion.

Back to private equity. Private equity got involved in the deal and I read through the documents related to the sale. His share of the $1 billion? $40 million. That's not a typo. He was the sole founder and he wound up with 4%.
RUBENSTEIN: We typically get 20 percent of the profits...

Third, I - I don't really set the - the rules about what income will be...

We typically get 20 percent of the profits.
Word to the wise. If you start a business, keep it small, keep it under your control, don't overexpand.
While the periphery breaks down rather slowly at first, the capital cities of the hegemon should collapse suddenly and violently.
aedens
Posts: 5211
Joined: Tue Nov 04, 2008 4:13 pm

Re: Financial topics

Post by aedens »

By 2020, the OECD predicts the shadow economy will employ two-thirds of the world’s workers.
This new economy even has a name: ‘System D’.
Many know how long they have been screwed over and by who for what reasons.
The statists by large are paranoid alpha leech nightstick sociopaths.
The left being more subtle just kills you by committee.
Average folks just wish they would cancel themselves out
instead of the 70 percent cilivian casuality rate from the last cluster war.
Of course there are along the way the Sheriff sure as hell needs to shoot.
Like I conveyed it took time to deprogram my own graduates since
education is fine but lets review what they ignored and why.
Last edited by aedens on Tue Jan 24, 2012 8:01 pm, edited 1 time in total.
Higgenbotham
Posts: 7999
Joined: Wed Sep 24, 2008 11:28 pm

Re: Financial topics

Post by Higgenbotham »

http://community.nasdaq.com/News/2012-0 ... yid=115795

A couple comments about "System D". Say a woman is a single mother and "works" off the books. She can collect welfare, food stamps, and maybe some energy assistance. It can be much more lucrative than working at Wal-Mart let's say. From December 9: "The existing economy will only be affordable for about 10 or 20 percent of the population. The loss of economy of scale will cause costs to rise as a percentage of income and selection to fall for the shadow of the old economy that remains. The rest of the population will scratch out an existence, relying on self production, black markets, and crime to procure the necessities of life, which will be the full time job of the unemployed members of the household. It will be a substandard lifestyle." The OECD says 4/6 (or 2/3) whereas I am guessing 5/6 of the population will exist in this manner. But they are on the right track.
While the periphery breaks down rather slowly at first, the capital cities of the hegemon should collapse suddenly and violently.
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