Sunday, January 25, 2015

There Are No Such Things as Financial Markets Anymore

Let us take a very simple concept.

Bill wants to raise money for his new company that he, personally, does not have enough money to launch.  Bill goes to the "financial markets" which is no different than the fruit market or "farmer's market" except instead of fruit or veggies, he is looking for capital.

Providers of capital (called "investors") meet and bid over Bill's business through a slightly complicated process of "going public" which is assisted by investment banks and brokerages.  Still, this market operates no different than any other.  There is a demander for capital, there are suppliers for capital, and they haggle and negotiate on a price.

Now in the farmer's market or even the grade-school-play-ground-baseball card market the only things to affect the prices, supply, and demand would be items that are relevant and pertinent to those markets and the wares traded therein.  And so too should it be the same with the financial markets.  But just because something "should" be doesn't mean it is, and thus welcome to our modern day "financial markets."

The truth is the financial markets no longer represent the news and information that is relevant to stocks, bonds, and other forms of financing new or to-be-acquired businesses.  And the reasons for this are multi-fold.

First, the majority of money being supplied into the market no longer comes from interested investors, keen on launching new companies. It comes from retirement planners who are socking away their monies in the idealistic and outlandishly naive hopes of retiring by 65 (33 if you're a government worker or teacher).  Matter of fact, these sheeple aren't even investing their money in new business ventures.  They're buying stock on the secondary market, looooong after investment banks and hedge funds have gotten the majority of equity and capital gains out of those stocks.

Second, you have speculators who have no real legitimate business being in the financial markets in the first place.  Oh yes yes, I know, they do make markets more efficient, except when they don't.  Their mere existence moots and destroys the concept of a financial market in the first place.  Now, instead of just investors looking to supply budding entrepreneurs with capital, you have some idiot in California using an ECN to make .0005 cents per share profits on a butterfly, triple lindee, hybrid spread (if you don't know what that is, that's alright, you're not hip like all those people on CNBC). 

Third, machines.  Yes, machines.  Specifically machines that execute trades based on algorithms perhaps maybe even programmed by humans.

Are these machines there to provide business opportunities with capital?
Are these machines there to fund entrepreneurial ventures with much needed funds?

No, they're, once again, there to speculate, even manipulate prices, driving them up and then driving them down.

Now we can go on, but I didn't really realize how fully divorced today's "financial markets" were from its literal namesake until I was driving down I4 near Orlando listening to "A Finance Podcast."

The host of the show had followed me on Twitter and said, while he does like what I say, he cannot tolerate the cursing or swearing.  Fair enough, but I, always with a road trip in front of me and hours of time to fill, downloaded and listened to all of his podcasts.  It wasn't until I was just outside Orlando did I realize something about his podcast.

The majority of his commentary and interviewees did NOT discuss the actual financial markets as much as they were:

Government moves
Government legislation and
Central banking

And it is this that is the proof that the financial markets are anything but, and should be named something else.

If you look at the media currently dedicated towards covering the "financial markets," you have to ask yourself the question:

"How much time do they spend addressing/responding to moves by the governments and central banks, versus the factors that actually should affect the companies and the industries therein????"

And at least in this little trial balloon, I realized that the majority or at least the plurality of time was spend addressing governments and central banking.

This proves just how far from free markets we've moved.  When the "financial" markets move, nay, hinge on every word and move from the central bank and monetary policy, and dismiss all that annoying "background noise" of what's actually going on with the individual company, you need to ask precisely what does this "market" represent. 

Does it represent the investors looking to fund the entrepreneurs like it was intended to?

Or has it morphed into this multi-trillion dollar, amorphous, cross-breed Frankenstain monster between government, the retirement planning industry, central banking, crony capitalists, and politicians?

Because one can be reasonably measured, studied and pursued as a discipline by students of finance and economics.

The second is one where even the greatest financial and economics minds are merely observers whose guesses are purely that - guesses.  Because by that time, they all might as well become political scientists and everybody knows that is not a real nor legitimate field of study.

Saturday, January 24, 2015

Why the Left Hates Nuclear Families

For once, I don't think there's a language warning in this one!  Still, it's important to know why the left hates nuclear families and especially fathers - it's competition!

Wednesday, January 21, 2015

Wednesday Road Trip Linkage

"No Go Zones" show why we must remain vigilant even on the right leaning media.

Another damn fine podcast from The Black Brigade.
Even Forney comes through with a heck of a conversation about faux religion with Blair Nasso.

Don't forget to bring your towels when you visit Cuba...because they may not have them.

Club Orlov has done me a great favor and FINALLY given me the beginning pieces by which I can maybe slowly start the initiation process to figure out what's going on in Russia and the Ukraine.

Tuesday, January 20, 2015

I Have Officially Defined MGTOW

While I know there is much debate about MGTOW and who has the rights to this open source concept, I have finally decided that I, being a veteran MGTOW Level 26-c, am the foremost authority and outrank anybody else who either legitimately or falsely claims to be MGTOW.  Thus, after much contemplation and thought, I have finally decided what MGTOW is, means, and will continue to mean into the future.


Thank you, thank you, and buy my book!

Episode #79 of The Clarey Podcast

In this darn-well-near curse-free podcast:

Drinking in airports
Finishing my book at Hemingway's bar in the Keys
There are no Mideasterner tobacconists in Nebraska
Figuring out the origins of humor
Why can't women like South Park?
"We beat the Packers"
The State of the Union is not newsworthy (aka why Cap doesn't watch the SOTU)
Have sex instead of watching the State of the Union
Affirmative Action Uber Alles, Feelings Uber Facts, Cans uber Guns
How minorities hurt themselves placing more value on affirmative action than excellence
If Cappy was Speaker of the House


In this episode of The Clarey Podcast!

Sunday, January 18, 2015

Bachelors Degree in "Event Planning"

For the Patron Saint's Name of Frick.  Event planning.

And I thought, "no, no way.  Nobody majors in this.  It must be a scam."

But after searching "I'm majoring in event planning" there are people who actually spent money (and worse) schools that offer this bogus degree.

Wednesday, January 14, 2015

The Economics of the Education Bubble

This was a request, but it came out better than I thought.  Was able to link "Chang" in China directly paying "Tina" in Suburbanite SWPL America to major in something stupid because US Dollar Reserve Currency:

Monday, January 12, 2015

A Generation of Men Advancing Too Quickly

For all the benefits the manosphere has had on men, the male population, and male psychology, an unfortunate drawback is that it is so efficient and effective that men are advancing intellectually “too” quickly. So much so that I predict MILLIONS of men are going to advance so quickly, and so efficiently, they will be forced to face the the “void,” the ultimate “blackness” and the end of life.

From my latest piece at ROK.

Saturday, January 10, 2015

Why Feminists Choose Victimhood Over Work

This is (to date) what I believe to be my best rant against the hypocrisy of feminism and "empowered women."  Specifically, how they purposely choose to focus on "sexism" and "victimhood" instead of other, more effective actions they could take that would improve their lot immeasurably and actually close the wage gap, belying their true motives - theft and parasitism.

I also throw in a bit about what the sex life of a feminist must be like sleeping with the Pajama Boys of the world.

Language warning, as always: