Greece's struggling banking industry has been secretly injected with around €100 billion in emergency liquidity from the country’s central bank which was approved by the European Central Bank in Frankfurt, according to the FT.
Once again, the folly of putting stupendous amounts of cash into private pockets - and with the added cheek of calling it an 'industry'.
We constantly struggling to keep our business going - nothing but daily hard work keep all the plates spinning - but would we ever be given money? And we are an 'industry'.
I experience pleasure and pains, and pursue goals in service of them, so I cannot reasonably deny the right of other sentient agents to do the same - Steven Pinker
UndercoverElephant wrote:I'm not sure I'm following this. It's not like the value of the derivatives market can be lost - it's a zero-sum game. That total value of the market is all somebody owing somebody else something, and a lot of it will cancel itself out.
If everybody has hedged themselves perfectly, then you could have a payout on the whole of the derivatives market and the net result would be everybody stays about the same. In reality people are not hedged perfectly, so there will be some massive winners and massive losers.
The problem with these so called "Masters of the Universe" whizzy systems is that, when the shit hits the fan, we invariably find out they don't work as advertised on the tin. You can bet all kinds of outrageous and "unexpected" anomalies will be exposed.
UndercoverElephant wrote:I'm not sure I'm following this. It's not like the value of the derivatives market can be lost - it's a zero-sum game. That total value of the market is all somebody owing somebody else something, and a lot of it will cancel itself out.
If everybody has hedged themselves perfectly, then you could have a payout on the whole of the derivatives market and the net result would be everybody stays about the same. In reality people are not hedged perfectly, so there will be some massive winners and massive losers.
The problem with these so called "Masters of the Universe" whizzy systems is that, when the shit hits the fan, we invariably find out they don't work as advertised on the tin. You can bet all kinds of outrageous and "unexpected" anomalies will be exposed.
The biggest anomaly will be the double digit bonuses and commissions and charges that have been taken out of the system. The zero-sum game only applies if there is no leverage. But there is hence the huge losses that arise very quickly. Then the losses are loaded onto retail banking arms which governments 'must' then bail out. That covers the money removed and resets the system for an ever decreasing period of time.
If you really struggle with all this then think of a roulette wheel. That green 0 tips the balance in the house's favour. Keep betting and you will lose in the long run. In the markets the governments are lending the busted punter enough for a few more bets. That 0 keeps coming up though.
And when it all settles out we find that all the creation and destruction of money hasn't actually made any difference to the amount of oil left and look, that's not quite as much as some folk had been expecting.
But words spoken and written about money must be out-numbering words on energy by a thousand to one.
biffvernon wrote:And when it all settles out we find that all the creation and destruction of money hasn't actually made any difference to the amount of oil left and look, that's not quite as much as some folk had been expecting.
But words spoken and written about money must be out-numbering words on energy by a thousand to one.
the various manipulation of the money supply will not make any difference to the amount of resources. But, you can sure as hell bet they will make a difference to how equitably those resources are allocated.
I'd be happy if they were just forced to accept the 'average industrial wage' for their country and not a cent more.
(Something else I'd love to do is close down Monsanto/Syngenta/Dow and the rest of them, after sending all profits to deformed children in Vietnam).
I experience pleasure and pains, and pursue goals in service of them, so I cannot reasonably deny the right of other sentient agents to do the same - Steven Pinker
Aurora wrote:
I can think of something much better.
Remember the people who posted on the internet encouraging others to misbehave during last summers riots and were later given prison sentences, just imagine the sentence for encouraging others to hang bankers. SCA 2007.
However, you could use the defence that you are, in fact, sick.
