My new hero

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Problems with modern finance…

What I find the most striking about today’s financial market, particularly with large institutions, is their continued focus on estimating and measuring risk. Whether it be Market or Credit Risk – they continue to struggle with the process – when instead they should be focused on hedging it.

Welcome Back – 2018 version of ‘Things I think I think”

5 Topics I’d like to discuss

• The Media (Social, Print, Television) serves only to defend the economic, social and political agendas of the privileged groups that financially support them (Left vs. Right) while ignoring the man behind the curtain…
• Democracy in both America and Europe is being undermined and has been for some time now.
  1. In the US it’s very subtle- but manifesting itself in the sheer complexity and size of the Government which continues to grow, regardless of party in power.
  2. In Europe, it’s very direct: Decisions are placed in the hands of an unelected troika: the European Commission, which is unelected; the IMF, of course unelected; and the European Central Bank. They make the decisions.

In short – Go Brexit Go! You’re our only hope…trust me, I’ve worked for a European Bank

• People are very angry, they’re losing control of their lives, economic policies are mostly harming them, and the result is anger, disillusion, violence and so on.
• Education (particularly at university level) – At present, spurred on by the promise of beer now, pay later, in the form of student debt, we now have several generations of youth that have been indoctrinated by the glamor of socialism, altruism and renewed belief in Santa Claus.

The vast majority of fields of study have little to no practical use – and add very little to the student’s ability to establish themselves in a sustainable existence.

The current climate appears to be where the institutions of higher learning feel they are responsible for the indoctrination of the young. They are being trained for passivity and obedience. According to the left, once achieved, democracy will be fine.

• Neoliberalism in a nutshell
  1. reduce democracy
  2. shape ideology
  3. redesign the economy
  4. shift the burden onto the poor and middle classes
  5. attack the solidarity of the people
  6. let special interests run the regulators
  7. engineer election results
  8. use fear and the power of the state to keep the rabble in line
  9. manufacture consent
  10. marginalize the population.
• *Caveats & Disclaimers
  1. No original thoughts here – simple grasping at a framework for ‘what’s going on”
  2. Change my mind – I want to spend my golden years in a park with a table, an offensive statement and sign that reads ‘Change my mind”
  3. I will admit that I am searching for some sort of pattern / method/ algo to help me through these uneasy times (given life if never easy) and provide some sort of base from which to anchor from.

Government intelligence

UK government finds computer trading more efficient. As for HFT – No direct impact on volatility, But it does lead to market instability and periodic illiquidity. …
Government intelligence at its finest

http://www.chicagobusiness.com/article/20121227/OPINION/121229960/buffett-is-a-dope-or-hypocrite-or-both

Thoughts on the CT Shootings –

I saw an entire piece on this – but the one quote that truly resonates is as follows –

 

“The progressive control freak do-gooders that believe the government can solve all problems and improve our lives with another law or regulation, have as usual come to the wrong solution for the wrong problem. Stricter gun control laws would not have averted this this tragedy. Connecticut has the 5^thtoughest gun restrictions in the country according to the Brady Center to Prevent Gun Violence. The guns were purchased legally by the mother of the killer. Mentally deranged people should not have access to guns, knives, automobiles, gasoline, or baseball bats. The real issue is not what he used to kill these innocent people, it’s what caused him to snap. “

 

Enough said

Credit Suisse piece on HFT