[–] [deleted] 0 points 4 points (+4|-0) ago 

[Deleted]

0
1

[–] belphegorsprime 0 points 1 points (+1|-0) ago 

Hahaha when was this made? I thought the onion was a casualty of the last election cycle.

0
1

[–] Kal 0 points 1 points (+1|-0) ago 

Hahhaha. That really came out of left field.

0
0

[–] ougNaHadNepVed [S] 0 points 0 points (+0|-0) ago 

That kind of visualization technique is actually pretty effective for soothing the subconscious, but there are better techniques that reprogram the subconscious.

It's not that I'm really anxious about this, it's just like walking in a valley in the winter, and seeing a potential avalanche on the slopes above. Maybe I'll get through the valley before it triggers (I'll die), and maybe I won't. There's really little I can do about it, except point out that maybe we should take a different route so we don't walk under the threat of an avalanche.

[–] [deleted] 0 points 1 points (+1|-0) ago 

[Deleted]

0
2

[–] vastrightwing 0 points 2 points (+2|-0) ago  (edited ago)

First let me explain, we don't have a financial system. We have a casino. Federal Reserve notes are Casino chips. Stocks are the book makers bets. Then you have various "instruments" made up of stocks of companies with cooked books. They are called derivatives. You have synthetic derivatives, essentially derivatives of derivatives. ETFs of ETFs are my personal favorite. Now imagine placing bets on derivatives. Then imagine placing bets on bets of derivatives. Are you still with me? OK, now imagine that there is more money on bets than in actual stocks. Let's pick one bank in particular (Deutsche Bank). I'll refer to it as DB. Banks are now over leveraged hedge funds where the risk is socialized (read taxpayer backed) and the profits are privatized. Sweet deal! Now DB has over 100% margin on bets. The Casino has allowed DB to bet more money on derivatives than the bank could ever possibly pay back. Sit down for this. DB had over $73 TTTTrillion of derivative exposure last year. I have no fucking clue what its exposure is today, but I can safely say it's higher than $73Trillion. This means when DB has to settle its bets DB has less than $1 billion in assets. OK? You don't need to be a math genius to see the picture here.

OK, so why does the Casino allow DB to bet way more than its assets? Good question, I'll answer that for you. It's because Germans are going to pay. They will loose all their deposits because depositors are all junior creditors now. Germans will become instant bank owners. Their deposits will be wiped out, but hey, now they own part of DB!

Here's where I tell you the bad news. Here in the US, we have exactly the same problem. You and I are all junior creditors of every bank! Yep. When the hedge fund banks go down, you and I all become share holders of our respective banks. You didn't think the casino was going to lose did you?

0
2

[–] Greenzero86 0 points 2 points (+2|-0) ago 

As taxpayers (debt slaves) we bail them out.

0
0

[–] ougNaHadNepVed [S] 0 points 0 points (+0|-0) ago 

I've been thinking about this. I wonder how eager those DB execs would be to engage in financial folly if they had skin in the game?

Suppose that up to 1 billion cap, limited liability works like now. From 1 to 10 billion, it ramps linearly until the top three layers of execs lose 50% (or 90%) of their personal wealth if the company goes bankrupt, or gets a government bailout. They aren't alone. All bond holders take a 10% haircut off the top at 10 billion and above. And directors lose half what executives lose under that scenario. And allow the CEO to sit on the board, but not be chairman. And no multiple directorships. These last two would only for companies above 10 billion in market cap.

Shareholders, of course, like now, only get what's left over, so probably nothing.

0
1

[–] vastrightwing 0 points 1 points (+1|-0) ago 

This is what you get with fiat. No one has any skin in the game because there is no collateral. Sure, people who buy stock personally risk their currency but insiders know how to cook the books to mitigate their personal risk. As a result, corporations are destroying themselves and the economy with stock buy back programs. People aren't hired because capital is used destructively.

0
2

[–] goatsandbros 0 points 2 points (+2|-0) ago 

If by "our financial system" you mean one infected by the AIDS of government intervention, I'd have to agree.

0
2

[–] ougNaHadNepVed [S] 0 points 2 points (+2|-0) ago 

I mean the Federal Reserve, and its member banks. Everything else in our economy flows from their policy actions. What struck me out of the blue was how like a cancer tumor they are. It isn't only the US. Looking at the way debt is growing in all countries around the world shows the same pattern; if the economy doesn't grow organically, borrow from the future to goose it so it does, no matter the future consequences.

0
2

[–] goatsandbros 0 points 2 points (+2|-0) ago 

Ok, I'm 110% on board now.

0
1

[–] Its_ok_to_be_white 0 points 1 points (+1|-0) ago 

You get it.

Governments waste money into existence through useless wars and graft, and it can never be paid back because interest owed to the (((central bank))) adds to the debt. Paying it off is mathematically impossible.

If the treasury department printed dollars directly, there wouldn't even be a national debt.

0
1

[–] Diogenes_The_Cynic 0 points 1 points (+1|-0) ago 

Its absurd to expect 8% ROE from the stock market.

0
1

[–] wgtt911 0 points 1 points (+1|-0) ago 

So which successful system should we follow...

0
3

[–] 10984931? 0 points 3 points (+3|-0) ago 

A system where the economy is designed to serve the people and not the other way around.

0
0

[–] goatsandbros 0 points 0 points (+0|-0) ago 

The only such system is the one where it has no design, whatsoever.

0
1

[–] Kal 0 points 1 points (+1|-0) ago 

Why do you assume we need an old system? Did we just simply try everything we ever could already?

0
0

[–] ougNaHadNepVed [S] 0 points 0 points (+0|-0) ago 

I think Kal said is well below; we haven't tried it yet. I think the most successful historical system was that in Babylonia. But they had the advantage of a very stable (stagnant?) economy, so through trial and error they aligned the amount of money created with the amount of economic output. So the value of their currency remained the same over time. From memory, the system was stable for over a millenium (1500 years?).

I personally favor a system where the government takes back the power of seigniorage from the banks. And money is money, not debt. Where the amount of money created is a direct function of the actual economic output and accrued capital of the economy. When we were a developing economy like China is today, we needed to pretend we had capital to build capital. We have no shortage of capital today, and our financial system encourages financial shenanigans instead of fruitful investment. The dollar needs to be defined in terms of something intangible, like energy. Energy is the currency of the universe, so it makes sense to express human currency in those terms. That precludes a lot of chicanery that occurs under the current system. Is it cut and dried? No, an economy is the most complex system that exists in the universe, because it includes volitional agents, and is constantly mutating. So we have to manage it via principles, rather than regulation.

It's too complicated to explain in a post like this. And it's only possible because of the advent of computer processing.

I perceive your question from the following perspective:

Doing the same thing over and over again, and expecting a different outcome is insane.

If you always do what you've always done, you'll always get what you've always got.

What is our financial system skilled at creating? Booms and busts! And who benefits from booms and busts. Well, gamblers, of course. But even more so, it is those with capital. It's like a siphon that takes wealth from wage earners, and transfers it to capital owners. And concentrates capital in fewer and fewer hands. Helped along by a constantly devaluing currency.

I don't see much chance of change, because the people who could change this, Congress, like the ability to spend money they don't have in order to keep their cushy jobs, with great benefits, high status, and lobbying and speaker fees in retirement.

0
0

[–] vastrightwing 0 points 0 points (+0|-0) ago 

The mattress system. You convert your labor into tangible goods. Keep away from the casino.

1
-1

[–] burns29 1 points -1 points (+0|-1) ago  (edited ago)

Go back to Reddit commie.

0
0

[–] ougNaHadNepVed [S] 0 points 0 points (+0|-0) ago 

So, do you think the government should allow people to dodge liability for their actions by hiding behind business vehicles like limited liability companies or limited partnerships? Or is that too much government for you?

Personally, I think they've been given that ability at too low a cost. Those business vehicles need more restrictions placed on them. We gave them Manhattan Island, and they've given us some glass beads.

0
1

[–] burns29 0 points 1 points (+1|-0) ago 

We negotiated for Manhattan and we've created the most prosperous society in the history of man. The latest dictatorship disguised as communism has left the Venezuelan people starving.