The idea that investors want stability is nonsense. They want the high risk, high rolling, high potential profit volatility that a fractional reserve money creation system and the unregulated ability to game the markets on borrowed and newly created money allows. All they have to do is make their sad puppy face, and they’ve got politicians running to keep those nasty “job killing” oversight regulations and that profit-draining tax burden out of their way. After all, it would make them “uneasy” if they had to factor in a tax burden anywhere near what ordinary Americans pay.
Humans are naturally herd animals. So, that’s a factor, and will always be a factor in our behavior. We also have the potential to come to deeper understanding of our behavior and to adjust it accordingly. That too, can be a factor. That said, we have options when it comes to a monetary system, which is the foundational structure of an economy. When we choose a fractional reserve money creation/ banking system, which is in essence a great con, it requires the confidence of all to keep it functioning. So, yes, on a superficial and current level, the Republicans are doing all they can to subvert confidence in the current economy, which, yes, is serving to push it down further. But, it is the system of our own choosing, which gives them this power.
“Markets rise and fall far less on what businesses or government do (Greenspan’s trickle down or Keynsian stimulate up) and more on what investors think the future will bring (Kahneman’s decision-making).”
Yes and no. In smaller markets like the black markets individuals decide the rules and keep both gubbermints and business away from their dealings. In regulated markets its a different animal. Depending on the philosophy used it can bring prosperity to mostly everyone or it can destroy mostly everyone (I use the term mostly everyone because there are winners and losers). For example when FDR initiated Glass-Steagall and other financial reforms many people were able to get rich off of information available (not including insider trading). When Bubba and War Shrub decided to do away with those regulations the financial markets became a free for all. There were a few winners and a many losers.
To add to your point of fearmongering Republicans if John Bonehead keeps screaming about “job killing” “and investment killing” regulations on the people who are gaming the system NO ONE is going to invest or put their money in the markets. Now if he were to say “We need this financial regulation so that we even the level of investment”, investors will begin to go back to the markets.
Dtroutma over 12 years ago
About to challenge the two-headed alligator for “meanest animal in the world”??
Noveltman over 12 years ago
Anyone see that thriller, “Human Centipede?” Check out Tosh.O’s review of it.
vhammon over 12 years ago
The idea that investors want stability is nonsense. They want the high risk, high rolling, high potential profit volatility that a fractional reserve money creation system and the unregulated ability to game the markets on borrowed and newly created money allows. All they have to do is make their sad puppy face, and they’ve got politicians running to keep those nasty “job killing” oversight regulations and that profit-draining tax burden out of their way. After all, it would make them “uneasy” if they had to factor in a tax burden anywhere near what ordinary Americans pay.
vhammon over 12 years ago
Humans are naturally herd animals. So, that’s a factor, and will always be a factor in our behavior. We also have the potential to come to deeper understanding of our behavior and to adjust it accordingly. That too, can be a factor. That said, we have options when it comes to a monetary system, which is the foundational structure of an economy. When we choose a fractional reserve money creation/ banking system, which is in essence a great con, it requires the confidence of all to keep it functioning. So, yes, on a superficial and current level, the Republicans are doing all they can to subvert confidence in the current economy, which, yes, is serving to push it down further. But, it is the system of our own choosing, which gives them this power.
d_legendary1 over 12 years ago
“Markets rise and fall far less on what businesses or government do (Greenspan’s trickle down or Keynsian stimulate up) and more on what investors think the future will bring (Kahneman’s decision-making).”
Yes and no. In smaller markets like the black markets individuals decide the rules and keep both gubbermints and business away from their dealings. In regulated markets its a different animal. Depending on the philosophy used it can bring prosperity to mostly everyone or it can destroy mostly everyone (I use the term mostly everyone because there are winners and losers). For example when FDR initiated Glass-Steagall and other financial reforms many people were able to get rich off of information available (not including insider trading). When Bubba and War Shrub decided to do away with those regulations the financial markets became a free for all. There were a few winners and a many losers.
To add to your point of fearmongering Republicans if John Bonehead keeps screaming about “job killing” “and investment killing” regulations on the people who are gaming the system NO ONE is going to invest or put their money in the markets. Now if he were to say “We need this financial regulation so that we even the level of investment”, investors will begin to go back to the markets.
In short, spot on observation.