Open thread June 25, 2010 Dan Crawford | June 25, 2010 3:03 pm Comments (26) | Digg Facebook Twitter |
So why are we following the EU model (a generation late?)
We seem to not learn anything from the mistakes of others. Or is it just the liberals?
Europe has already tried the Socialist approach and are now moving to our model of Government spending while we are following down their socialistic path.
Please, please calendar hurry to November.
Hell…..it’s probably to late…….Two things:
1.) The Democrats are probably going to get enough of the anti-capitalist infrastructure in place before the election (remember they have until January not just November), and of course, all of it set up to hide it for now, and their plan of finishing us off in 2016 will be on schedule.
2.) I am still not convinced that Republicans are going to get large enough majorities to repeal any of it. There is plenty of wolves in sheeps clothing in Republican Party to help the Democrats hold over till 2016.
It’s not like we haven’t been teetering on the Socialist cliff for quite sometime. Since the public is so brainwashed, I say bring it on, and lets get it over with, let the chips fall where they may, and may the spoils go to the victor!
Has anyone figured out yet that one of the early casualties from the neo-Hooverite revolution in Europe is probably going to be NATO support for the effort in Afghanistan? The war — being unwinnable and all — is not terribly popular to begin with and maintaining combat troops in Afghanistan is expensive. My guess is that shortly after the next budgeting exercise in the various countries, you will be able to find most of our allies hanging out at the Greyhound Terminal in Kabul waiting to catch a ride to someplace west of Suez where a man can eat a wurst and drink a mug of beer without worrying about some Afghan patriot/crazed jihadist fanatic (depending on your point of view) trying to blow him up.
Jimi, I fear you are probably correct, and it will take a generation or longer to recover from this debacle. One thing is certain, we will have the newest worst ever Prez identified.
For those here who voted for him, how many are still proud of that vote?
Codger–Wouldn’t it be wonderful if NATO did pack up and leave Afghanistan? Just think! We might be able to reduce the DOD budget and use the money to extend unemployment benefits or build bridges or…. Oh, never mind. The Deficit, yep. Gotta pay down the debt. Right. Sorry I brought it up. NO
Or we could discuss this analysis of the May 6, 2010 “Flash Crash” of the New York Stock Exchange. http://www.nanex.net/20100506/FlashCrashAnalysis_CompleteText.html I don’t begin to understand all of it, but the main point seems to be that the proximate cause of weird pricing and wide swings in equity pricing was that the NYSE was posting slightly delayed quotes with a time tag that caused High Frequency Trading Software to think they were current. That led to attempts by the software to arbitrage the apparent differences in pricing between the NYSE and other exchanges.
What I personally take away from this is something that will not surprise any engineer. HFT systems can be unstable and can set up unexpected feedback loops.
Personally, I think that the world got by pretty well without HFT systems, and that we might be well advised to get along without them in the future as well. We seem to have enough problems without putting equity pricing in the hands of computer programs that no one really understands.
The flash crash and HFT further confirm the casino-like nature of the beast. How can there be responsible owner ship when shares are held for less than a second? How much of the daily volume is actually invested in productive capital? Less than one percent. Even betting both sides,red and black, loses due to green 0,00 ,000….. With taxes the exchanges pay about as well as the state lotteries but are less transparent.
you could be right. but my take is a little different.
the trickle down theory having been shown to be disasterous is still favored by those folks who pretty much control the money. the worldwide deficit scare is their last hurrah to drown government in the bathtub.
please understand i am not so in love with liberals as you might think. many of them seem to view the insurance model as: if a poor man has a fire, take money from the rich man to build him a new home, whether he paid his fire insurance or not. if a rich man has a fire, well he doesn’t need his insurance, whether he paid for it or not.
i think this old lower class working person has a better idea than both your houses.
since i indulge my own paranoid conspiracy theory here myself, i can’t really complain about yours. but i can’t take it seriously either.
pay down the defict? don’t you know “deficits don’t matter.” that’s what dick cheney told us only one administration ago. soons you gets another republican in office they won’t matter again.
as for a “peace dividend”, well, we tried that before too.
To whom is this aimed and kidding about what?
I can live with that!
Boy……I wish you would prove me wrong. I am not sure how much of a fan or student of history you are, but I didn’t fall off the potato truck yesterday, and I see a clear agenda failing into place over the years in this country, all of which was predicted and advocated by the Socialists both in this country and abroad.
if it wasn’t the potato truck, what was it? Or is it just that you can’t remember?
Tell us exactly what you mean by socialism. I find it hard to apply that label to a country in which the top one percent has a hundred times as much money as the bottom fifty percent per capita.
Socialism is where the government controls the means of production. But I have heard you say “the government doesn’t produce anything.” Can’t have it both ways, you know.
Or do you mean by socialism any country where the government does anything except arrest troublemakers?
i have no wish to “prove you wrong.” i started a tutorial on Social Security just for you on the MIllenial thread. But you got tired of that conversation.
Back when i was a teacher I could count on you coming back the next day and have to listen to more. and i would give you a test. and a grade. and you’d have to explain to your dad what you had been doing all semester to get grades like that.
But don’t feel bad. You are hardly the only one.
Speaking only for myself. I don’t mind the casino. But I’d like it to be a well run casino regulated by something akin to the Nevada Gaming Commission — stable, with well defined rules that are enforced.
probably you should mind the casino. at least there was a reason why protestant societies frowned on gambing. it’s a hell of a way to run a country.
I agree with you when it comes to the state running gambling operations like lotteries. That is a matter of the state encouraging gambling, and I think that is inappropriate. We didn’t have em when I was a kid and got by just fine.
But people are going to gamble whether it is legal or not. I don’t have any problem with the government maintaining order in the gambling halls and preventing the management and patrons from cheating, lying, running ponzi schema and otherwise misbehaving. That’s just a matter of government exercising the police powers that almost everyone agrees can be necessary and appropriate.
The US should try a new “peace dividend”.
In Europe they allow their militarists’ pillaging at less than 2% of GDP. PRC similarly small take.
The US is running close to 7% GDP for good jobs, and extensive investment for nothing that benefits anyone shy of those making a profit and salaries in for ‘profit arsenals’.
I consider the oft maligned Clinton boom as in part fueled by a peace dividend as the militarist skim off GDP declined to around 3.5%.
Of course if the militarists plundering had been deeper during the late 90’s the box cutters would not have worked on 9/11. WRONG!!!
Most of the 7% of GDP for war machines does nothing for the common defense, nor any rational security strategy other than have the same forces the US ended WW II with.
And occupy bands around the Eurasian landmass with no enemy to contain.
But controlling 7% of GDP for no benefit to society and no real ends frees lots of taxpayer dollars to keep the militarists’ dole going.
Peace dividend is necessary since deficits are born in military madness.
i agree with you. but what i was talking about was an economic system based on the casino gambling that the stock market has become.
An interesting week in that ole Global Warming arena. Over in Oz, they have forcedout their Prime Minister. His party chose another leader/PM.
Thatis the 2nd senior part official forced out. The opposition party forced their leader out two days before their vote on the ETS, the Oz version of Cap & Trade. That isssue also sunk Rudd.
Looks like ETS is political poison in Oz.
i can’t keep up with Initials and Acronyms, and I regard them as bad manners, unless they are explained at least once in the body of the work.
But my understanding about Oz is that they forced out their prime minister because he didn’t have the balls to keep fighting for cap and trade.
now i don’t like cap and trade myself. but it sounds like the Ozzies just want someone with balls to be their prime minister. That’s why they chose a woman.
Dale said: “But my understanding about Oz is that they forced out their prime minister because he didn’t have the balls to keep fighting for cap and trade.” You again have shown your misunderstanding. Nope, Emission Trading Scheme, is dead, and his continued push to pass it was why he was dethroned.
I think it would be quite possible to separate the gambling and the investment aspects of the stock market, and that we should probably do so.
On the investment side, there should be a small — say 0.1% — tax on transactions in order to discourage High Frequency Trading. But you would be able to actually own the stocks, bonds or Pork Bellies that you buy — take delivery — collect dividends — etc.
On the gambling side you’d be able to go down to the Bucket Shop/OTB/Casino or log into its on-line equivalent and place bets. No transaction tax as the bookmakers will set the odds so that the house makes its usual 5-8% or whatever profit. But you’d be able to bet that IBM stock will go down or that oil will be over $100 a barrel in June 2013 — if you can find a bookie ready to take your bet — which you probably can.
With this sort of arrangement, the price of oil is set by oil producers and consumers — or at least by speculators with a somewhat long term perspective. And pure gamblers would be able to gamble without altering the financial markets.
I just came across an interesting article in the NYT re quasi-legal cannabis dispensories in Colorado. When Capitalism Meets Cannabis http://www.nytimes.com/2010/06/27/business/27pot.html?hpw
Medical Marijuana is legal, taxed, and regulated in Colorado (albeit still illegal under federal law that is not being enforced). The article describes some of the aspects of setting up and running Cannabis dispensories — including a dispensory operator who says something along the line of “regulations? Bring ’em on. I’ve run regulated operations in other fields and I’ve run this. Regulated is easier. There are rules.” (I can envision free market idealouges — many of whom have clearly never seen a small business — recoiling in horror.)
Anyway, it’s an interesting article.
you could be right. i heard it on the BBC, which may be no more reliable than NPR, or Fox for that matter.