Free and fee

This post, as said last time , was going to look at doers and speculators (next post), but let's delay that to look at the subject of free or not. As with all subjects related to t-issues, there is a lot that can be said.

However, we ought to look at how close free is to fee (both are old english), namely one letter. But, let's just limit things to that observation, for now.

Basically, we have those who claim that 'free' is what we're after in several regards, such as market, trade, and what have you. Well, many say that thing that we're looking for with 'free' is an illusion that needs to be tempered and to be seen as the ideal that it is.

But, wait, one can use doers (and not) in this context. In actuality, doers always use energy and resources, even though it may be that many doers seem to make things appear to be effortless. Actually, that magical touch is one characteristic of excellence. Yet, no amount of easy accomplishment happens without some expenditure.

And, fee is only being used facetiously, as fees, hidden or otherwise, are always there. We all know, though (and learn), to watch that those 'greased slides' referred to in another post don't move monies from our pockets; that is, who wants to be included among the hapless? What is the adage: once burned, twice shy?

Another type of basis for these things could easily bring in better means to look at what happens in economical terms; as an example, perhaps energy processing, as a metaphor, would be stronger than has been allowed.

So, we'll need to look further at doers, as promised; too, a better characterization of non-doer (oh, perhaps free may apply here, as in something for nothing) might be in order.

Remarks:

03/25/2013 -- The Atlantic had an article about King Abdullah II. Now, he is an example of a doer, from several angles. What I liked when I read it was that while being educated in Massachusetts, he bussed tables. What that means for those who don't know is clean up dirty dishes and such. When I, as a young man, was in the US Army, we had still had KP duty which included such types of things. Another task that ought to be tried once by everyone: cleaning the grease pit.

05/09/2011 -- Doers, reconsidered.

08/10/2009 -- As promised, FEDaerated is here.

12/18/2008 -- Fairy dusting continues with made-off results. But, we can construct with robust methods, including leveraging.

11/12/2008 --

Well, things feel apart fairly quickly, starting in September of 2008. By N0vember, there was general spooking. Starting in September, movements toward nationalization sped so fast that it was easy to forget that a Republican administration was still in the White House. Talk about rewarding hubris and moral hazardness!!!!

Modified: 03/25/2013

Economic groundwork

In order to establish where things may have gone awry and why it will be necessary to look at what has gone on and from when. That is, there have been claims here of a gaming-centric ontology going bad; well, let's see what that might mean.

So, at the bottom, let's suppose that we can look at two classes of people, doers and speculators (next post). Now, the doers are those who keep the world going with their efforts; for many of these, life is a drudge with very little payback; for others who are the real cream of life (by aptitude, attitude and application), their talents get used however without sufficient reward; we could characterize this useful set (the old adage of the ant works) for a long time and with a whole bunch of words (but let's not, yet).

Those other type abounds, too, yet, the world has continued despite their machinations (speaking of the old adage, we're talking the grasshopper). You know, financiers might fall within this realm. Back at some point, one thought of financing as being involved in production or transportation or something else real. But, guess what. Around 1973, the fact that the mathematics was understood (having been created by doers, mind you) and that there were sufficient advances in the computational led to what was done at the CBOE and to provide the means to enable financial gaming to a maximum extent.

What happened? Well, option processing, essentially. Options are only one of several types of derivatives. Yet, they are a good example to analyze their problems to attempt to lay out a better framework for financial economics that would somehow inhibit forthiness and other problems.

Too, a proper viewpoint might help balance that mindset that glorifies riches (gosh, even a premier Ivy League school which started for the glorification of God [early motto: For Christ and the Church] is a player and raker) and allows the pockets of the hapless to be picked with impunity.

The exercising of an 'option' is a type of leverage; we will need to enumerate types of leverage, such as silly game 1, silly game 2, etc.

The whole notion is that economics (financial and otherwise) can get divorced from reality. Fortunately, engineering does not have this problem so much. But, when we apply engineering to finance, watch out! As Buckley, stop and think. How do we get back some realness for several reasons (such as, allowing the boomers to have a reasonable retirement)?

Remarks:

03/25/2013 -- The Atlantic had an article about King Abdullah II. Now, he is an example of a doer, from several angles. What I liked when I read it was that while being educated in Massachusetts, he bussed tables. What that means for those who don't know is clean up dirty dishes and such. When I, as a young man, was in the US Army, we had still had KP duty which included such types of things. Another task that ought to be tried once by everyone: cleaning the grease pit.

05/09/2011 -- Doers, reconsidered.

11/04/2010 -- Big Ben is still putting us at risk and trashing the savers.

09/09/2009 -- Alan's reign will be looked at, in time.

12/18/2008 -- Things were going along so fast (the meltdown, made-off, ...) that the basic message got lost. We'll start again with a new look at leveraging.

09/14/2008 -- Minsky's hierarchy is very much apropos, here, among other things. Probably, anything beyond hedging (which is respectful, if done right) and part of speculation (perhaps, halfway along some spectrum that could very well be defined) would be consider suspect and definitely ponzi-like.

Alan's and Ben's (you guys need to rethink your position) position that we cannot see crap when it is happening (oh no, says Alan, we can only clean up after the fact) is very much indicative of how blind is their sight. The proper tools are there, folks.

Modified: 03/25/2013

Money, money, money

Yes, we can thank ABBA for the title; as well, don't you think that money by any other name is just as troublesome?

As we start to look at money, what it does to people, how it leads to silliness, and all sort of other things, we ought to see that there has been a lot of discussion from many angles on this subject.

That finance takes its lead from macroeconomics which takes its lead from mathematics will be at the fore. Perhaps, it's time to re-look at the whole mess. The trouble is that the world cannot stop while we try to understand and re-adjust.

So, we know that the Monday to Friday games have already started for this week; sympathies to those who will lose; a message to those who will win that little and big 't' issues remain to be considered.

• - Von Mises did a good job looking at the types and functions of money. What was referred to before as the role of money will need some attention.
  
• - Money is the basis of the price system, but there have been many other types of models proposed which can be classified as heterodox (there is still an issue of the computational support requirement). What was referred to before as intrinsic value needs attention as well.
  
• - In this discussion, we'll be bringing in some t-issues; that wealth is not measured well in the price system will be one topic.
  
• - Given that we have paper and coins and more, perhaps there is some basis that could be applied other than any used so far. What was referred to before as the gab standard is apropos and will be looked at further.

Finally, we'll be getting into how 'being' relates to what we know of as money.

Remarks:

03/15/2011 -- The M & Ms are apropos.

02/24/2011 -- Gravy trains, et al.

09/08/2009 -- Heterodox covers several things, but here the suggestion leans towards the energy-based approach to money and value.

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

02/18/2009 -- We can look at why securities become toxic, almost by necessity.

01/26/2009 -- We got way-laid, too many things unfolding that the attention was riveted.

Modified: 03/15/2011