Thursday, July 31, 2008

Money and Being

We're going to go back and look at money, from a foundational sense. That is, money plays roles far beyond what the modern abstraction-ist view can allow in their model. The roles cover a gamut, including a major one at the core of things.

And, the modern view fails due to several things, such as bad use of mathematics, for one thing. What we see as a result is a tipsy affair where money (in one its aspects, namely the wealth accumulation variety) rolls into fewer and fewer pockets, that loom in tremendous size. On the other side, the hapless set, which is of larger cardinality than it ought to be, finds its pockets being picked regularly, in many cases via questionable practices.

So, rather than just rant and spout off, let's start the long process toward a new view that may help clarify some issues. Like what? Well, why 'moral hazard-ness' is discernible even if no-one has the guts to state it. And, we can have a better way for all folk, not just the favored few.


04/04/2011 -- The M & Ms are apropos. Need to look at some background.

11/08/2009 -- The gigantic chimera needs proper attention.

08/17/2009 -- As promised, FEDaerated is here.

06/20/2009 -- Yes, rent can go to labor (new look at capitalism), and finance can have a higher calling.

01/18/2009 - We even need to look at why we need finance.

12/01/2008 -- We need to learn what we might be taught about money by Islamic Finance.

Modified: 04/04/2011

Wednesday, July 30, 2008

Gaming example

One example of the types of financial gaming that have evolved with the relaxation of rules is the naked short. Supposedly, this type of maneuver was illegal except for a few favored types. Earlier, the SEC put some restrictions to protect Mac and Mae; they were extended somewhat; some wonder why these restrictions don't apply more generally.

So, we'll have to take a look at why 'shorts' are even allowed in the first place; then, let's ponder why any would be allowed to be as 'naked' as the jaybird.

Some claim that this has been a technique used by some hedge funds which are notably opaque in their desire to protect their playing field while the tricks are being played. The subject of the hedge fund is quite timely and can bear a lot of scrutiny. Of course, all the information used will be that which is already in the public domain. It's just that there is a grating relationship between truth engineering and those positions that the hedge fund represents; note that the grating isn't unpleasant as we learn from such things.

But, there are more techniques than the short involved here. Risk management will be another major topic to pursue; that it applies, as well, to the project management side of things is noteworthy.

Earlier, that Minsky's model can be used in both domains (finance and engineering - note the medical metaphor) was touched upon briefly.

Tuesday, July 29, 2008


As alluded to in another post, blogs are a lot of work. Of course, one could just rant in a stream-of-consciousness mode. Would that be interesting?

You see, there are all the methods available for organizing, linking, and such. Besides, the medium seems to be a fair publishing scheme.

So, some work will be done here shortly to start the second year positively.

- register with a spider (Technorati Profile)
- link to some related blogs (Calculated Risk)
- find examples (another) of the gaming gone bad
- start to look at what money is and why we need it
- ...

Modified: 07/31/2008

Thursday, July 3, 2008

Process and Protocol

Lately, the posts have dealt with a couple of types (engineering and financial), but there was some discussion earlier of the medical types.

Much of the success to date, assuming that what we call by 'success' really is such (bunches of discussion of wholistic (intended) issues need examination [such as, one pocket being lined to the max while oodles of others starve cannot be called success except facetiously]; too, environmental degradation needs to be brought into equations that are going to spout about success), deals with finding best practices. It's the notion that process rules.

One consequence of that is that people are made into commodities (even securitized, thereby degraded). Well, from some warped views, people are only pawns anyway, so what's the issue?

Related to process will be the protocol dealing both with the formation and execution of rules and with interchange with the environment (i/o, if you would).

So, process rules in this day. The individual is shorted, except for the few who use the modern situations, opportunistically, to line their pockets to the max.

We see that now even in the medical realm, a process has taken hold.

Yet, let's divert a minute and use a baseball metaphor briefly. What chances are there that some process can take any individual, put them at the plate, let them run the protocol, and then give us someone like the Babe? Fairly close to zilch, wouldn't you say?

So, the basic question is: what predominates, the protocol or the person? Before you answer, please note that the disparities that we see economically are partly do to how this question is answered. Too, some types of deviations caused by the failures of protocol are ignored, that is, are considered non-value (oh, please, let's talk value) added.

Thankfully for many, we see that the person side is important. I wouldn't want even the best nurse practitioner following some protocol and doing surgery. Not on me, unless it's minor, and I can both observe and participate (think of those who have had the luxury of doing their own appendectomy).

Lean, if there is a failing to this (there are more, that are political and social), is protocol-oriented. That the concepts from this thing are applied (mis-applied) ought to give us some pause. The problem is that the current cultural framework hasn't allowed the proper discussion. Well, time will afford the opportunity.


09/04/2009 -- Markets work, since they handle undecidable issues bottom up. That approach will always outperform the top down, along almost all axes. Too, there are people who worry about how we can help the human/labor/consumer found the economy fairly.

09/02/2009 -- Let's face it, folks, undecidability needs to be discussed and adopted in any complex situational setting, especially if computers are involved. Only hubris pushes us to make loud exclamations about what we're going to do in the future.

Modified: 08/24/2011