Thursday, September 1, 2011

Speculators, liquidity, rainy days, capitalism, Marx, Rand, mobility

66% of 2011 gone. 8 months flooded with hyped up doom and gloom

Is there an economic system that is immune to barbarism?

Many years ago, my now late mother went to a stockbroker to sell my stocks (I think it was banks'). She indicated a range of prices she would be OK with, around the current price, and had to wait for days until a buyer was found. Speculators. We were told that they provide liquidity so that the rest of us can find a buyer or seller at any time, not have to wait for days like my mother did. Well, if that is indeed the contribution of speculators to the functioning of the financial markets (or even the real estate and other ones) then obviously what we have seen in recent years is a "runaway train". Not worth the benefit of liquidity my mother could not benefit from.

Now, on a related topic. People do need a way of storing value in days of :"sunshine" for "rainy days". Are the ones available nowadays via the current "version" of "Capitalism", suitable for that job?

How much of the funds speculated around the world every day are actually savings not entrusted to managers for greed, but for maintaining "nest eggs" for "rainy days"? In that sense is the European Social Model capitalism's biggest enemy? One that must be destroyed so that people will have to depend on that markets for "safekeeping" (!) their "savings" for "rainy days"? Oh my!

Thus:

Key question: Do speculators speculate with their own money or using the money of people & orgs who have no idea what their money is used for?

Now, moving on:

Beyond Marxicm, Randism etc:

How much does 2011 capitalism have in common with 1850 capitalism? 1910? 1950? Even 1980? Please address the problems of 2011 capitalism!Using 2011 tools not 1850 or 1950 tools or even worse, antiquated economic & ideological dogmas!

Too financial times:

Do you realise how many people are sick and tired of financial and economic issues being at the forefront of current affairs? Many more than those who are sick and tired of party political news!

Politicians should stop offering voters simplistic models re what is happening & why! If they themselves don't know, should ask people who do.

Finally, ponder on this:

Bureaucracy does not like mobility (of people, workers, companies). Yet mobility, more of it, can help solve many public policy problems.

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BRs
Nick

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