The times

Reuters reports on Sunday dealt very closely with what we have been discussing.

Then, yesterday's news had it splattered everywhere. The failures continue.

Well, the causes are varied, but the culpability of the Fed (and the economic community) cannot be denied. Alan says that we can't see crap until it happens. Ben continues in that vein. So, then, the taxpayers have to clean up the mess, ex post facto.

Look, it's not that difficult, folks.

- put money on some real basis (remove the gab standard) and minimize the political aspect (yes, this is possible)
- financial instruments need to be scrutinized (including testing in a sandbox) in a worldview that understands why we have, and can know our, limits (quasi-empirical arguments are apropos)
- rearrange the thinking about the (supposed) mathematical support for this craziness (it's pseudo-math running amok)
- oh, by the way, tie computational modeling into truth engineering (I'm not after riches, folks)
- the basis for the future ought to prime in the economy, even over-lording what leads to greed, namely private profit maximization (Minsky's hierarchy is apropos). Besides, it's near-zero sum. Those whose arguments are for non-zero sum need to get their heads out of their illusion.
- establish some means to ensure that financials are tied to intrinsics (to be defined, but Buffet's attitude toward what he invests in is, in part, an example)

Remarks:

10/11/2009 -- Discussion has gone over to FED-aerated. Note the 10/11/2009 Remarks about the Business Week article on India's progress' inhibitors. 'Near zero' recognizes that some always suffer more than others, especially in win-win situations, as the whole notion of characterization minimizes visceral reactions by diminishing the real in favor of the abstracted (ah, the modern world, you say?).

09/12/2009 -- Sandbox was used without definition. Let's discuss that concept.

09/25/2008 -- A concept that can bridge the waters and allow a larger set of associations is 'fraud power' in reference to modern financial methods.

Modified: 10/11/2009