Daily Speculations The Web Site of Victor Niederhoffer & Laurel Kenner Dedicated to the scientific method, free markets, deflating ballyhoo, creating value, and laughter;  a forum for us to use our meager abilities to make the world of specinvestments a better place.

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Wednesday, June 4, 2003
Does He Exist?

It is hard to believe that Paul Volcker really exists. Born in 1927, there he is with me at Larry Ritter's side telling me he doesn't have a computer, doesn't see any need for them, and doesn't have anything new like a tape recorder either. There he was again at a benefit for Henry Kaufman telling me that the main purpose of the stock market is to create worry, that the other real worries are Bush and the war. There he was at 75 being vetted by Corzine and Schumer for SEC Chairman on a plank of eliminating corporate excess and irresponsibility. There he is  eternally saying that the stock market is overly exuberant, and there he was recently as the poster boy against estate tax reductions and against income tax reductions, in short, anything that encourages innovation, that allows individuals to keep the fruits of their efforts, to engage in voluntary transactions, anything that 's not in line with increasing government control of resources , he's against.

Why is it that so many men of financial power, when they age, develop a thinly veiled hatred of the enterprise system, eschew anything that will allow mobility, and growth, and innovation, to arise? The Buffets, Greenspans, O'Neills, Rubins, Summerses, Volckers,  and other fellow travelers. Pete Peterson embodied this attitude when he boasted to me that there wasn't a businessman within 10 miles of his summer home. I attribute the root cause to lack of adequate sex. but also hatred of competition. -- Victor Niederhoffer

Comment from Omid Malekan:
"I wouldn't call it a hatred of competition, more like a fear of it. You mentioned control, and control is very important in all competitive pursuits. In markets, business and sports, one can never really control the final outcome of all events. This inherent uncertainty is a frightening thing. Those who have the courage to face it can only achieve success if they realize that success is a two-pronged approach: you control yourself and predict others.

Maybe as people get older they lose the courage, or the ability to control themselves. The only thing left to do is to cheat the game, and try to control others.