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Destructive Power Of The Financial Markets

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The fractional reserve system gets out of control when it is used for speculation instead of development. It works fine in say an expanding nation, where companies take out loans to expand production.

But when one bank takes 50 times leverage and bets that the Euro will rise against the Dollar.. and a bank down the street takes 50 times leverage and bets that the Euro will fall..one side gets bizarrely rich, and the other side needs a bailout to protect depositors money.

Of course those few in the country who have the ability to use the fractional reserve system, to lend money they don't have, and to speculate with 50 times the money they actually have, get bizarrely richer than the rest of the population.

Europe's political leadership is so juvenile and ignorant that they don't even understand hwo the system works, let alone would they have the ability to put in place a regulatory framework. Whereas in other nations like China where the leadership are the smartest guys in the room.. do they let their bankers gamble away the country's future? No, the bankers are simply agents for helping accomplish national goals.

Edited by aa3

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The fractional reserve system gets out of control when it is used for speculation instead of development. It works fine in say an expanding nation, where companies take out loans to expand production.

But when one bank takes 50 times leverage and bets that the Euro will rise against the Dollar.. and a bank down the street takes 50 times leverage and bets that the Euro will fall..one side gets bizarrely rich, and the other side needs a bailout to protect depositors money.

Of course those few in the country who have the ability to use the fractional reserve system, to lend money they don't have, and to speculate with 50 times the money they actually have, get bizarrely richer than the rest of the population.

Europe's political leadership is so juvenile and ignorant that they don't even understand hwo the system works, let alone would they have the ability to put in place a regulatory framework. Whereas in other nations like China where the leadership are the smartest guys in the room.. do they let their bankers gamble away the country's future? No, the bankers are simply agents for helping accomplish national goals.

Banks should be mere nationalised utilities - with employees who have committed the world's greatest fraud, [LIAR LOANS, CDO's, MBS's etc.] chained to their desks, £15k per anum, eating only porridge and one bowl of gruel a day. If they F**k up - ....the firing squad.

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Banks should be mere nationalised utilities - with employees who have committed the world's greatest fraud, [LIAR LOANS, CDO's, MBS's etc.] chained to their desks, £15k per anum, eating only porridge and one bowl of gruel a day. If they F**k up - ....the firing squad.

Well my personal experience is that banks are awesome. Barclays Stockbrokers / BARSTB have excellent customer service, and dont tax me a penny for any trading, and give me free software which is great.

Yay banks

*chomps popcorn*

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The fractional reserve system gets out of control when it is used for speculation instead of development. It works fine in say an expanding nation, where companies take out loans to expand production...

...in other nations like China where the leadership are the smartest guys in the room.. do they let their bankers gamble away the country's future? No, the bankers are simply agents for helping accomplish national goals.

+1 - what you said, yeah

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Europe's political leadership is so juvenile and ignorant that they don't even understand hwo the system works, let alone would they have the ability to put in place a regulatory framework.

It comes to something when this rings so true. Remember that "off the cuff" interview with Nigel Farage with the students on the street? I don't want to get into the debate whether he's right or wrong with his policies, but one bit in that really stood out for me, where he says that most of the MP's don't have a clue about how money works.

You'd have thought that, being the voice for tens of thousands of people, that MP's might want to take a little more interest as to what is going on.

here's the HPC link to the interview, if anybodies interested.

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It comes to something when this rings so true. Remember that "off the cuff" interview with Nigel Farage with the students on the street? I don't want to get into the debate whether he's right or wrong with his policies, but one bit in that really stood out for me, where he says that most of the MP's don't have a clue about how money works.

You'd have thought that, being the voice for tens of thousands of people, that MP's might want to take a little more interest as to what is going on.

here's the HPC link to the interview, if anybodies interested.

I have to say after having watched numerous Farage videos that UKIP is getting my vote next time I get the opportunity.

It looks like they don't have the clip on line from Channle 4's Britain's Trillion Pound Horror Story (aired a few months back) where they interview various random MPs leaving the Commons, but that piece of shocking video highlights the fact that most haven't a clue, NOT A CLUE! Most interviewed didn't know the difference between the national debt and the deficit and most couldn't put a figure on either, and these are the people voting on decisions that affect all our lives. FFS!

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Wow, just finished reading the Spiegel article; absolute belter. It feels like the naturel text companion to the Inside Job documentary, expanding on the themes a bit further.

Yeah, we could do with some articles like that hitting our broadsheets over here too. Another mark of respect for Germany notched up for me in that regard.

This passage is worth quoting:

Britain, in particular, isn't keen on keeping too close an eye on hedge funds, because the financial industry is one of the few remaining sectors in which the British are still competitive worldwide.

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The fractional reserve system gets out of control when it is used for speculation instead of development. It works fine in say an expanding nation, where companies take out loans to expand production.

But when one bank takes 50 times leverage and bets that the Euro will rise against the Dollar.. and a bank down the street takes 50 times leverage and bets that the Euro will fall..one side gets bizarrely rich, and the other side needs a bailout to protect depositors money.

Of course those few in the country who have the ability to use the fractional reserve system, to lend money they don't have, and to speculate with 50 times the money they actually have, get bizarrely richer than the rest of the population.

Europe's political leadership is so juvenile and ignorant that they don't even understand hwo the system works, let alone would they have the ability to put in place a regulatory framework. Whereas in other nations like China where the leadership are the smartest guys in the room.. do they let their bankers gamble away the country's future? No, the bankers are simply agents for helping accomplish national goals.

Dammit people will you remember to keep the door shut, the damn MCLs have wandered in again!

:rolleyes:

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I thought this was interesting speaking of destructive power - algorithms making decisions for us in the markets, eg 70% of Wall Street uses 'black box or algo-trading'

http://www.bbc.co.uk/news/technology-14306146

It is quite possible most of these algoithms are not even trading the market - just reaming their customers - setting prices that skim off profit for the trading boxes whilst diddling the "investments" they are holding for other people a fer percent at a time. The more they churn their cusomters portfolios the more they can steal.

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It is quite possible most of these algoithms are not even trading the market - just reaming their customers - setting prices that skim off profit for the trading boxes whilst diddling the "investments" they are holding for other people a fer percent at a time. The more they churn their cusomters portfolios the more they can steal.

Just think, if we hadn't bailed out the bankers ineptitude the way we did ,those v.bright maths graduates might be now using their skills to do something socially useful. What a waste of talent.

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Here's a question:

In your opinion, what percentage or portion of the financial/banking sector is currently "societally productive"?

Edit: And consequentially, what portion is either unproductive or downright destructive?

Edited by ska_mna

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"Someone who doesn't have a product, and neither expects to have it nor will have it, sells this product to someone who also neither expects nor wants to have it, and in reality does not receive it."

:lol:

I bet on a horse I don't own and the bookie who takes the bet doesn't own the horse either- we call this gambling- those guys in the city might just as well sit in their offices and take punts on which of two bugs crawls fastest up the wall.

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Here's a question:

In your opinion, what percentage or portion of the financial/banking sector is currently "societally productive"?

Edit: And consequentially, what portion is either unproductive or downright destructive?

Couple of examples..:

Mergers and Acquisitions: Something like 75% have been demonstrated to destroy value; you could probably cut volumes by 80% and end up with a net economic benefit.

Private Equity: Leveraged buyouts have a knack of turning perfectly viable businesses into bankrupt wrecks.

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In your opinion, what percentage or portion of the financial/banking sector is currently "societally productive"?

And consequentially, what portion is either unproductive or downright destructive?

Dylan Ratigan just tweeted a link to this:

"What’s the difference between productive wealth and destructive wealth?"

http://www.dylanratigan.com/2011/05/11/umair-haque-on-radio-free-dylan/

Thought it was topical with regards to this thread. Just having a listen now.

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Dylan Ratigan just tweeted a link to this:

"What’s the difference between productive wealth and destructive wealth?"

http://www.dylanratigan.com/2011/05/11/umair-haque-on-radio-free-dylan/

Thought it was topical with regards to this thread. Just having a listen now.

A good find, I had not heard of Umair Haque.

I've long pondered the real benefits of financial business that fail to 'add-value', even whether the tax system should be arranged to reward investment activity that leads to such value creation as against pure casino speculations. Adair Turner, many months ago, just after the 2008 crash, referred to the 'economic rent' imposed by much of the City and that it served little benefit to society.

Have those thoughts developed at all?

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Wow, just finished reading the Spiegel article; absolute belter. It feels like the naturel text companion to the Inside Job documentary, expanding on the themes a bit further.

Yeah, we could do with some articles like that hitting our broadsheets over here too. Another mark of respect for Germany notched up for me in that regard.

This passage is worth quoting:

Paramount recently bought the rights to Daniel Suarez’s novel, Daemon. The film centers around a computer programmer who creates some software designed to kill mankind.

The novel and film are named after a type of computer software that can run on it’s own. :P

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Dylan Ratigan just tweeted a link to this:

"What's the difference between productive wealth and destructive wealth?"

http://www.dylanrati...dio-free-dylan/

Thought it was topical with regards to this thread. Just having a listen now.

Reeks of illuminati/Masonic occult numerology and word symbollism!

Har-vard

Har in Hebrew means mountain/mount or hill - pedestals these freak 'Gods' "mount" themselves on whilst formulating the New World Order/Satanic Globalism and pumping out the next waves of population slavery.

They are the same ilk who 'theorise' and make your working lives a misery/make you ill thru 'human resources' implementing the latest USA imported 'gimmickry' and 'fads'

You can see the timeline of the demise of UK working conditions falling exactly in line with Bullying Big Business introducing more and more 'Americanisms' <_<

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  • 277 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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