There should be a New Yorker cartoon with the gist sort of like the palindrome's trades selling 1000 contracts at the market and then calling up the reporters and saying, "this market seems like it has a very weak bid" or like Thor drinking from the Jotun's cup of mead and making very little progress in emptying it not knowing that the other end was connected to the Atlantic Ocean.

We used to have a very good cartoon about "why sell my company? Things are going very well". In the background was fire engulfing his plant and thunder and lighting and floods ready to engulf. Anyway, we need something like a old lion like the sage saying, "this market seems to be going down for no reason" and a man like the sage or scrooge rubbing his hand in glee in dollars as he siphons off all the profits and humbly speaks at a fund raiser for his favorite politician.

Russ Sears comments:

 Or a caption with diplomats/politicians saying "at least we had the sense to avoid a trading war." With money being stuffed into various industries hand behind each countries back.

First we are in a trade war of a different kind. The arguments that tariffs leads to a trading war is well known. 1. It leads to displacement. 2 it is a form of tax on the consumer. 3 It delays production moving to those countries that have a real economic advantage. 4. It leads to retaliation and escalation. 5. The friction can grind economic growth to a halt. But what is the flip side of a tariff, a government subsidy. A government subsidy is a double negative equivalent to a tariff. It is a double negative because: 1 it goes for the favored domestic companies. 2 Its a future tax to domestic tax payers rather than an immediate tax to the foreign importer. The solar company’s bankruptcy makes it clear that each of these arguments against tariffs is occurring in subsidies. Further, it shows how much more crippling this war is in an “idea” or technology economy rather than manufacturing economy because it can be started upfront, before the evolutionary process can naturally occur. How far would applying this lesson go towards restoring some sanity and halting the skid-marks to the current crisis many developed governments find themselves?

And second how fast would the local fog clear if this lesson was applied to the flexions Too Big to Fail companies?






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2 Comments so far

  1. steve on September 30, 2011 8:24 am

    have you ever noticed how the really rich become philanthropic AFTER they have accululated their incalculable wealth?

    John Rockefeller handed out dimes to threadbare, and hungry children when he walked the streets. while driving out the small business owner across the street.

    Buffett donating much of his wealth after his death. And proclaiming that the rich do not pay their fair share.

    Turner donating 100MM to the U.N across 10 years. And railing against Catholics and mainstream christians for their beliefs.

    Clinton acquiring 110MM in 10 years and establishing the Clinton Global initiative.

    Perhaps they are “buying a stairway to heaven”

  2. Andre Wallin on September 30, 2011 8:14 pm

    intraday vix patterns telling you what to do the past week ie big head and shoulders pattern early in the week and cup and handle today…but tell me can humans not be motivated by a sort of openness to mankind instead of this abrassiveness to his fellow human beings that I feel inbodies raw american capitalism. there must be a better way, as humans, as we get more intelligent their systems for organizing their population have to change as well. may I remind you that I had poor SAT scores and went to such a bad school such as babson college that in today’s society i found this place. things are changing dramatically…(access is open to the mind and not to your designation or starting point in life)


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