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.
Wednesday, July 30, 2008
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