Archive for the ‘Excess and Algorithms’ Category

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What does a white-collar, wall street economic terrorist have to do to go to jail?

Write billion dollar checks with strings attached and an ability to make money back off the deal I suppose.

That is what Goldman Sachs recently did in New York as a means of settling their Legacy Matters related to the 2008 economic collapse that they have now admitted to being at least partially responsible for.

Usually when a person confesses to a crime, they still go to jail, they still face a righteous punishment. Maybe instead of the death penalty they serve life in prison. The deal that Goldman Sachs cut with the working group headed by the New York Attorney General, is very Manhattan, a lot of bluster for the sake of appearances that stinks like garbage when brought into the sun.

What good is restitution without a righteous penalty? What is the value of a fine to people with unlimited money and unlimited capacity to get free money from the US government?

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A penalty isn’t a penalty if it doesn’t hurt the person or party being penalized.

Fining Goldman Sachs five billion dollars is like fining the ocean enough water to run a water park for a summer. Not only is it less than a minimal but its a pretty salty reward  that cant quench anybody’s thirst.

In the developed world money equals power. The purpose of news is to inform the common person about what those in power are doing. The event of the 2008 economic collapse and the ripple effects in the aftermath of it effect more people directly than any presidential election in modern times

Yet how much coverage did the announcement of this multi billion dollar settlement get compared to any aspect of the presidential primary or anything Donald Trump has said in the last year?

Legacy matters.

Most people would agree that it does. On Wall Street that means a whole different thing. Then again what doesn’t? The announced five billion dollar settlement by Goldman Sachs sums up their legacy and the legacy of the 2008 economic collapse quite well.

Smoke screens, legalese, under the table deals, double talk, fine print, more mystery than truth, more PR than pure.That is the legacy of the 2008 economic collapse and the Great Recession that followed it.

That is the legacy that matters to Goldman Sachs, and the royal we of Wall Street. The legacy matters of the too big to fail institutions on Wall Street are nothing more than numbers on a spreadsheet…just like everything and everyone else in the world.

On Wall Street, legacy matters are things you put behind with shame. In the rest of the world, it’s something you leave behind with pride.

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ajclogo2By @anarchyroll

Few people, whether real or fictional, are as synonymous with America’s version of capatilsm as Gordon Gekko in the movie Wall Street.

“Greed is good” are words to live by for the people who try to fill the hole in the soul with copious amounts of money by any means necessary. That quote is the foundation of type of free market capitalism that brought about the 2008 Great Recession.

That economic collapse should was a very very big, very very loud, very very painful sign that we as a society have allowed greed to get out of control. It is one of the seven deadly sins for a reason. Wall Street and unregulated capitalism have transformed greed into the deadliest sin. Able to negatively impact the entire developed world with greedy actions of a relatively small percentage of the global population.

One of the ripple effects of the Great Recession has been the mainstream populous rise of what a generation ago would have been considered a fringe presidential candidate. Bernie Sanders through passionate speeches and a lifetime of walking the talk has risen like a phoenix.

Another ripple effect has been that greed is no longer good enough for the top 20% – .01%. The rich get richer no longer is a substantial enough metaphor. How do I know this? How can I be sure of this?

The fact that the real life person who inspired the fictional icon Gordon Gekko is publically endorsing Democratic Socialist Bernie Sanders for President.

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How can the inspiration for the phrase Greed is Good be endorsing a socialist for president? Because the unregulated greed thanks to the Clinton and Bush administrations has become something beyond excess and gluttony.

 

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By @anarchyroll

America’s identity is its middle class. What makes America different than every other country that has come before it? The economic middle class…..guns, and obesity.

For real tho, it’s the middle class. We invented it. Before the United States of America there was no middle class. There was rich and there was poor.

What the middle class literally is, as well as what it metaphorically represents are both why people immigrate from all over the world, not just from the third world, to be in America. A country with an economic ladder for all people who work hard as opposed to caste systems? That concept is worth risking life and limb to millions of people each year. Legally and illegally people want into America.

Freedom/democracy is great too, but what good is freedom if you’re poor? What good is living if you live under literal oppression or economic oppression where there is only the super rich and the super poor? America, the land of opportunity; where ordinary people can simply work hard and be rewarded monetarily in a manner that enables not just animalistic survival, but also comfort, upward social mobility, and land ownership.

The socioeconomic middle class is Americana. Baseball, apple pie, barbecues, two week vacations, two car garage homes with a white picket fence. The images created by those words are the America middle class; the great reward for all born or adopted citizens who buy into the concept of American exceptionalism by giving their blood, sweat, and tears to a job for the middle two quarters of their life.

Without a middle class, America has no true identity. Freedom? Democracy? Those both existed before America. Flags? Bald eagles? Sports? White people oppressing minorities? Those all existed before America too believe it or not.
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There is a saying; Don’t tell me about the labor pains just show me the baby.

One can look at that chart and say there are still plenty of people in the middle class. One can point to the people who have improved their income status over the past ten to forty years. Both are valid points. There is still a middle class in America and people have moved economically upward out of the middle.

Want another valid point? Both democratic and republican presidential candidates are dedicating equal time to talk about the erosion of the middle class. In this polarized political era, for both sides, to completely agree on a non national security/terrorism issue?

How can the erosion of the middle class be immune from political party polarization? Sure they’ll disagree on how to fix it, but to be in complete agreement of the present moment problem? Sounds like what happens when a person reaches a midlife crisis. And a midlife crisis is nothing more than an identity crisis.

The erosion of the middle class is America’s identity crisis.

Are we a caste system? Are we an oligarchy? Are we a republic? Can our economic and political systems ACTUALLY co exist? Should we just buy a sports car?

The real questions always start with Who/What/When/Where/Why and How?

Who; has benefited from the erosion of the middle class?
What; exactly has been happening over the past thirty years to lead to this erosion?
When; was the middle class the most robust?
Where; specifically did the wealth lost by the middle class go?
Why; was the middle class so vibrant at its peak?
How; can the economic principles of then be adapted to modern time?

If one asks these questions, and does a few basic Google searches, the answers become pretty obvious pretty fast. But the answers to these questions don’t actually require searching the internet do they? Deep down inside, we all already know what’s been happening. We know where the middle classes’ money has gone. We know whose benefiting from the loss of the middle class. We would like to tell ourselves we don’t know why because we want to see and believe the best in people.

Have you heard the phrase, the rich get richer and the poor get poorer?

How about; All is fair in love and war.

Class War has been the new Cold War for about thirty years, which wouldn’t ya know, is about how long the Cold War has been over, and is how long the middle class has been eroding.

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by @anarchyroll
10/15/2014

It turns out Apple is worth more than a lot of things. A lot of things and a lot of other companies.

The company is valued at over half a trillion dollars and at any one time, has around $160 billion of liquid assets on hand.

The US government for instance, has less than 1/3 of that on hand. Although, as the Forbes article linked above makes sure to note, the US Treasury can at any time print more money and invest it into treasury notes.

What does it mean when a company has more than three times the amount of money as the government  of the country it operates in? Does that tremendous gift on incredible wealth come with added responsibility? A responsibility not just to employees and shareholders, but to cities, cultures, and societies?

Apple hoards so much cash, that Carl Ichan, the man who the lead character in the movie Wall Street is based on, thinks Apple is being too greedy with their profits. That takes a whole lotta greed. Ichan is as ruthless of a capitalist as it gets. If someone who makes his living using money to make money thinks Apple owes something to other people, that puts Apple in a different light than the idolatry bestowed upon their founder and products.

Apple already deserves some scorn for their notorious tax dodging/avoidance practices. They dodge taxes and hoard cash from even their own stockholders. What about the societies that have enabled the company to become richer than governments? What about the roads, schools, bridges, farms, poverty, intelligence, and morale of the places and people Apple has made their billions in? Do they owe something? Should they bear more responsibility to the public than slightly newer, slightly modified consumer electronic gadgets a few times per year?

With great power comes great responsibility. Money equals power in the world we live in. No one person, government, or corporation in the world has more money than Apple. Where does responsibility come in?

 

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by @anarchyroll
10/6/2014

The biggest Initial Public Offering (IPO) in the history of the New York Stock Exchange occurred recently.

Have you heard of Alibaba? Had you heard about Alibaba before last month? Have you already forgotten about Alibaba after it didn’t carry over to a fresh news cycle? When someone mentioned it to me last month, all I thought of was the Beastie Boys song.

What is Alibaba?

  • Google, Amazon, PayPal and eBay all rolled into one
  • A wholesale marketplace; Alibaba is the middleman the connects retailers/sellers directly to customers/buyers
  • Alibaba is the top dog in the largest e-commerce market in the world

How did Alibaba become the biggest IPO ever?

  • Capitalizing on the Chinese consumers’ desires to shop online, for cheap, with trustworthy retailers/merchants
  • 80% of China’s e-commerce is done through Alibaba
  • Domination of the world’s largest growing market paired with international expansion has Wall Street drooling

So China’s biggest internet cash cow has gone public on stock market. Yahoo is the biggest American company to directly benefit from Alibaba’s IPO success as the two are very  much in bed together, on the level, and in public NOT under the table. In fact, Yahoo has benefited so much from Alibaba’s success there is talk of them investing in and/or acquiring Snapchat.

What are potential problems with Alibaba?

  • It’s Chinese, the communist government/central bank could throw a monkey wrench into the mix at any time, and already has
  • The stock being bought isn’t actual stock in the company, but in their Cayman Islands shell corporation
  • Is Alibaba-Mania a product of a new Dot Com Bubble? The question is worth asking.

Should you go out and buy as much Alibaba stock as you can afford? Well, if you’re a good investor, you should always asked yourself; what would Warren Buffett do?

As with most IPOs, if you weren’t ahead of the curve or a fan of the band before they were cool, the ship has mostly sailed on this one. What I find personally noteworthy about Alibaba, is everyone I know who invests and is well off because of it, wants nothing to do with Alibaba. Why? They all say the same thing; the Chinese government. How much is the government involved with Alibaba? How much influence do they have? How much transparency is there and how much of that can actually be trusted?

When the Head of the FBI goes on 60 Minutes and openly talks about the Chinese military attempting to cyber attack the US economy, one should be very cautious about investing in the Cayman Islands shell company of a Chinese internet marketplace with direct ties to the Chinese government.