The 80/20 rule still applies to wealth in good and bad times. i.e. 80% is owned by 20% of the population. THose in the UK that are really feeling the pinch are those that dived into cheap "buy to let" mortgages a few years ago. I know a guy who has a dozen, now 3 aren't let and the rest don't cover the outgoings.....
Waiting for Godot & salvation :-)
Why do doctors have to practice?
You'd think they'd have got it right by now
Hmmmm. DownUnda, a TARP ( Troubled Asset Relief Programme ) = a tarpaulin, that you throw over & tie down goods on the back to stop them blowing/falling off. How appropriate a name is that.
If we lose a few more 'independent investment banks' then so much the better. But for sure keep those owner occupied home mortgages propped with tax funds.
Some lending policies need a review, certainly credit lines from banks that simply further marginalise lenders for their short term gain - low initial equities, the car and the motor boat also backed by the house, but then all three drop in value, rates go up half a point, you lose your job or even just fewer hours -> you're out on the street. No one ever wins that scenario.
Clever watchers will note the ~20% drop in oil prices, but not at the pump.
Cheers, Mike.
( edit ) And 'restricting futures trading' would be a brilliant move. What initially began as a security/hedge option for commodity producers and processors has turned into a rubbish dump of speculative nonsense. The purpose of futures contracts was to increase stability within value adding chains. An insurance product really to prevent exploitation of short lifetime materials. The only entities that should really own futures contracts are those within the chain. No derivative products. [ the problem is that 'what is the delivery/production price of a pound of spuds in July?' morphs into 'what will Freddy the futures finangler be able to offer Jenny the junk bond generator' ]
I have made this letter longer than usual because I lack the time to make it shorter ...
... and my other CPU is a Ryzen 5950X :-) Blaise Pascal
Hmmmm. DownUnda, a TARP ( Troubled Asset Relief Programme ) = a tarpaulin, that you throw over & tie down goods on the back to stop them blowing/falling off. How appropriate a name is that.
If we lose a few more 'independent investment banks' then so much the better. But for sure keep those owner occupied home mortgages propped with tax funds.
Some lending policies need a review, certainly credit lines from banks that simply further marginalise lenders for their short term gain - low initial equities, the car and the motor boat also backed by the house, but then all three drop in value, rates go up half a point, you lose your job or even just fewer hours -> you're out on the street. No one ever wins that scenario.
Clever watchers will note the ~20% drop in oil prices, but not at the pump.
Cheers, Mike.
We are in an election mode here.. The first western election since the credit crunch.. Looks like the conservatives will get back in with a minority government.. They gained a few seats.. During the campaign they took to much credit for how stable our economy is.. They just left what was established.. alone
Our Housing market is stable.. To purchase a house you need a least 10 percent down.. anything less requires you take out mortgage insurance with the Mortgage Housing Corporation against defaulting on the mortgage..
The Government chose to move about 20 billon of insured mortgages from the chartered banks balance sheets to the Insurance Company balance sheet (which is a crown corporation). This freed up some more capital at the chartered banks allowing them to pass the full .5 percent coordinated rate cut to consumers(normally it is passed on but due to tightening of international credit markets they did not this time.
In our province our energy prices are regulated to avoid to much volatility. A commission sits called Regulatory and Appeals Commission every two weeks or on demand.. Energy Prices are determined based at the moment on future contracts on the New York Mercantile Exchange.. This smoothes it out a bit.. we are expecting a major decrease in prices tomorrow.. Citizens as well as producers are happy with the system.
There are some who can live without wild things and some who cannot. - Aldo Leopold
The economy ... it's a finite, closed system. Is there no schematic for it? (I'm avoiding the term 'model' because it seems to be a term that economists reserve for entities within the system ... ) As the private economy occasionally succumbs to forces beyond its ability to bear, it gets bailed out and regulated for a while, and it always seems to boil down to the integrity of the participants and problems entropic ...
It's not enough to say that the wheels of progress are round and require frequent refueling and lubrication – the wheels of progress are human lives ...
The sole criteria for judging any economy should be, “Can you afford to realize your dreams?�
While researching a dream of mine, I came across a couple great examples showing the world's economies working fine: 1) A guy who did well writing software, and then switched to rocket science – his company (in addition to other noteworthy accomplishments) makes the motor for an aircraft that went from design to flying in the skies in a period of mere months! (see Rocket Racing League), and 2) Here's a YouTube video of a guy who's clearly realizing some dreams - Rocket Bird
The most valuable commodity of all is your time, since no one knows how much of it you have ...
_____________________________
“Wot are ya gonna do with those? Heh, fly. I like to fly.� - scene from Rocket Bird
I don't think the economy is a closed finite system. That should not stop us from developing proper 'schematic' in the future.. We probably don't have one for the same reason we don't have one for the weather(which also affects the economy) When the knowledge such applying such principles as Chaos Theory to models are more effective... we are a long way off. There is a Nobel in it for some one..
As far as this crisis is concerned The financial people had the proper models predicting the risk and they just ignored them...
Edit: It is like Global warming we/they just push the risk into the future.. for an easy buck now
There are some who can live without wild things and some who cannot. - Aldo Leopold
...When the knowledge such applying such principles as Chaos Theory to models are more effective... we are a long way off. There is a Nobel in it for some one..
Well, then here's a candidate who has applied Chaos theory to financial markets some time ago:
The 80/20 rule still applies
)
The 80/20 rule still applies to wealth in good and bad times. i.e. 80% is owned by 20% of the population. THose in the UK that are really feeling the pinch are those that dived into cheap "buy to let" mortgages a few years ago. I know a guy who has a dozen, now 3 aren't let and the rest don't cover the outgoings.....
Waiting for Godot & salvation :-)
Why do doctors have to practice?
You'd think they'd have got it right by now
maybe it time for a recap
)
maybe it time for a recap since now the teacher has some problems
The economist
There are some who can live without wild things and some who cannot. - Aldo Leopold
RE: maybe it time for a
)
Hmmmm. DownUnda, a TARP ( Troubled Asset Relief Programme ) = a tarpaulin, that you throw over & tie down goods on the back to stop them blowing/falling off. How appropriate a name is that.
If we lose a few more 'independent investment banks' then so much the better. But for sure keep those owner occupied home mortgages propped with tax funds.
Some lending policies need a review, certainly credit lines from banks that simply further marginalise lenders for their short term gain - low initial equities, the car and the motor boat also backed by the house, but then all three drop in value, rates go up half a point, you lose your job or even just fewer hours -> you're out on the street. No one ever wins that scenario.
Clever watchers will note the ~20% drop in oil prices, but not at the pump.
Cheers, Mike.
( edit ) And 'restricting futures trading' would be a brilliant move. What initially began as a security/hedge option for commodity producers and processors has turned into a rubbish dump of speculative nonsense. The purpose of futures contracts was to increase stability within value adding chains. An insurance product really to prevent exploitation of short lifetime materials. The only entities that should really own futures contracts are those within the chain. No derivative products. [ the problem is that 'what is the delivery/production price of a pound of spuds in July?' morphs into 'what will Freddy the futures finangler be able to offer Jenny the junk bond generator' ]
I have made this letter longer than usual because I lack the time to make it shorter ...
... and my other CPU is a Ryzen 5950X :-) Blaise Pascal
RE: RE: maybe it time for
)
We are in an election mode here.. The first western election since the credit crunch.. Looks like the conservatives will get back in with a minority government.. They gained a few seats.. During the campaign they took to much credit for how stable our economy is.. They just left what was established.. alone
Our Housing market is stable.. To purchase a house you need a least 10 percent down.. anything less requires you take out mortgage insurance with the Mortgage Housing Corporation against defaulting on the mortgage..
The Government chose to move about 20 billon of insured mortgages from the chartered banks balance sheets to the Insurance Company balance sheet (which is a crown corporation). This freed up some more capital at the chartered banks allowing them to pass the full .5 percent coordinated rate cut to consumers(normally it is passed on but due to tightening of international credit markets they did not this time.
In our province our energy prices are regulated to avoid to much volatility. A commission sits called Regulatory and Appeals Commission every two weeks or on demand.. Energy Prices are determined based at the moment on future contracts on the New York Mercantile Exchange.. This smoothes it out a bit.. we are expecting a major decrease in prices tomorrow.. Citizens as well as producers are happy with the system.
There are some who can live without wild things and some who cannot. - Aldo Leopold
RE: maybe it time for a
)
Very interesting article, thanks for that.
RE: RE: maybe it time for
)
Ditto.
The economy ... it's a finite, closed system. Is there no schematic for it? (I'm avoiding the term 'model' because it seems to be a term that economists reserve for entities within the system ... ) As the private economy occasionally succumbs to forces beyond its ability to bear, it gets bailed out and regulated for a while, and it always seems to boil down to the integrity of the participants and problems entropic ...
It's not enough to say that the wheels of progress are round and require frequent refueling and lubrication – the wheels of progress are human lives ...
The sole criteria for judging any economy should be, “Can you afford to realize your dreams?�
While researching a dream of mine, I came across a couple great examples showing the world's economies working fine: 1) A guy who did well writing software, and then switched to rocket science – his company (in addition to other noteworthy accomplishments) makes the motor for an aircraft that went from design to flying in the skies in a period of mere months! (see Rocket Racing League), and 2) Here's a YouTube video of a guy who's clearly realizing some dreams - Rocket Bird
The most valuable commodity of all is your time, since no one knows how much of it you have ...
_____________________________
“Wot are ya gonna do with those? Heh, fly. I like to fly.� - scene from Rocket Bird
I don't think the economy is
)
I don't think the economy is a closed finite system. That should not stop us from developing proper 'schematic' in the future.. We probably don't have one for the same reason we don't have one for the weather(which also affects the economy) When the knowledge such applying such principles as Chaos Theory to models are more effective... we are a long way off. There is a Nobel in it for some one..
As far as this crisis is concerned The financial people had the proper models predicting the risk and they just ignored them...
Edit: It is like Global warming we/they just push the risk into the future.. for an easy buck now
There are some who can live without wild things and some who cannot. - Aldo Leopold
RE: ...When the knowledge
)
Well, then here's a candidate who has applied Chaos theory to financial markets some time ago:
[url=http://en.wikipedia.org/
)
[url=http://en.wikipedia.org/wiki/Benoît_Mandelbrot] Mandelbrot[/url] was probably ahead of his time.. Maybe somebody will build on his work
There are some who can live without wild things and some who cannot. - Aldo Leopold
Meanwhile...The search for
)
Meanwhile...The search for gravity waves continues...Crew...Status report please.