Whole article worth reading, final page in particular
― Milton Parker, Sunday, 23 October 2011 16:13 (3 years ago) Permalink
In an abstract sense, we know what roles financial institutions fulfil. In particular, (i) financial institutions avoid duplication both when monitoring loans and collecting information, (ii) they help to smooth consumption, and (iii) they provide liquidity.6 There are many enjoyable descriptions of some activities enacted in the financial sector that seem hard to reconcile with the laudable tasks thought of by economists. Moreover, knowing what the tasks of the financial sector are in theory does not tell us whether those tasks are fulfilled efficiently and at the right price. Nor does it tell us why the income earned by the financial sector has increased so much. As pointed out by Philippon (2008), in the 1960s outstanding economic growth was achieved with a small financial sector. Has it become more difficult to obtain information so that we now need to allocate more resources to the financial sector?
final paragraph does not go far enough, but it is still remarkable to see it published from this corner
― Milton Parker, Wednesday, 26 October 2011 20:36 (3 years ago) Permalink
Kevin Phillips, author of Nixon's Southern Strategy and hence of much of what ails the U.S., has in the past decade brought much attention to the "financialisation" of the U.S. economy and its parallels with the late stage of other global empires like Spain and Britain. It's worth searching for his shorter essays on the topic (search "Kevin Phillips financialisation") even if you aren't inclined to read his mea culpa trilogy about the colusion of financialization, resource scarcity, and the Americal Christian fundamentalist movement in bringing about the end of our era's empire.
I'd link them here, but this hotel's painfully slow wi-fi + the hassle of bbcode on an ipad are conspiring to make my posting a painful exercise.
― der dukatenscheisser (Sanpaku), Thursday, 27 October 2011 00:54 (3 years ago) Permalink
That would be "financialization" with a 'z'.
― der dukatenscheisser (Sanpaku), Thursday, 27 October 2011 01:00 (3 years ago) Permalink
― ASPIE Rocky (dayo), Friday, 4 November 2011 10:51 (3 years ago) Permalink
^ highly recommend this book, v informative even if my eyes glaze over every now and again
― BIG HOOS aka the steendriver, Friday, 4 November 2011 15:13 (3 years ago) Permalink
I commended Satyajit Das 1997 Traders, Guns and Money in the undersubscribed book of the aughts poll as my favorite non-fiction book. He has a new one out entitled Extreme Money, also funny, bitter, and dense with references (he's the Dennis Miller of derivatives/finance writers) that is a nice complement to the Bookstaber above.
― der dukatenscheisser (Sanpaku), Sunday, 6 November 2011 19:37 (3 years ago) Permalink
I don't think you're gonna sell anything here w/ a dennis miller comparison
― iatee, Sunday, 6 November 2011 19:38 (3 years ago) Permalink
Think Dennis Miller before he became a right wing tool. Das has a similar quick draw on cultural referents.
― der dukatenscheisser (Sanpaku), Sunday, 6 November 2011 19:45 (3 years ago) Permalink
had been planning to read "traders, guns & money," sanpaku, would u suggest "extreme money" instead
― new rap guy (BIG HOOS aka the steendriver), Monday, 7 November 2011 05:25 (3 years ago) Permalink
I see UBS rogue trader Kweku Adoboli studied the same subject at the same university as my least favourite ex, probably the year below him. I don't know whether to wonder if they met or just observe that they are clearly all terrible people
meanwhile the current bf used to work as a software engineer for some stock exchange trading software/network company and it was the worst place he's ever worked for the sheer amount of bullying to work twice your contracted hours for no extra pay, meet unreasonable deadlines, get sent away on business at the weekend (again, for no extra pay and with no expenses paid). and it wasn't any better paid than any other IT job
(replying to things from a month ago)
― how do i shot slime mould voltron form (a passing spacecadet), Monday, 7 November 2011 13:45 (3 years ago) Permalink
(in case anyone wondered how he came to have this job, the software team had previously been a little independent not-specifically-financial software company who got bought out by a finance team, and he got out as soon as he could after seeing what the new regime was like)
― how do i shot slime mould voltron form (a passing spacecadet), Monday, 7 November 2011 13:57 (3 years ago) Permalink
extreme money started out with so much throat-clearing and "told you so". now I'm a bit further in, and the information density is picking up quite a bit...
― s.clover, Wednesday, 9 November 2011 16:38 (3 years ago) Permalink
― ASPIE Rocky (dayo), Wednesday, 9 November 2011 23:31 (3 years ago) Permalink
― iatee, Friday, 6 January 2012 21:23 (3 years ago) Permalink
― iatee, Tuesday, 17 January 2012 05:56 (3 years ago) Permalink
― iatee, Monday, 30 January 2012 20:43 (3 years ago) Permalink
― iatee, Tuesday, 7 February 2012 15:17 (3 years ago) Permalink
many great things in that nymag article
this one sticks out: “We used to rely on the public making dumb investing decisions,” one well-known Manhattan hedge-fund manager told me. “but with the advent of the public leaving the market, it’s just hedge funds trading against hedge funds. At the end of the day, it’s a zero-sum game.” Based on these numbers—too many funds with fewer dollars chasing too few trades—many have predicted a hedge-fund shakeout, and it seems to have started. Over 1,000 funds have closed in the past year and a half.
― Milton Parker, Tuesday, 7 February 2012 21:46 (3 years ago) Permalink
it's not about the 'too few trades' it's about the fact that hedge funds haven't really proven to be particularly market-beating investment machines regardless
― iatee, Tuesday, 7 February 2012 21:51 (3 years ago) Permalink
That article is cute, but basically just a vehicle for bank PR. Bove is seriously a joke at this point. Attributing the economic pain that banks are feeling at the moment to Dodd-Frank is beyond silly. More prop positions in the last year would probably have just meant more losses. Either they're just really selectively quoting Dimon, or somebody convinced him that he shouldn't necessarily insult everyone all the time (cf. http://blogs.wsj.com/marketbeat/2011/09/12/jamie-dimon-declares-basel-bank-capital-rules-anti-american/)
― s.clover, Wednesday, 8 February 2012 05:17 (3 years ago) Permalink
oh yeah, this too" http://www.rollingstone.com/politics/blogs/taibblog/why-wall-street-should-stop-whining-20120208
― s.clover, Sunday, 12 February 2012 19:54 (3 years ago) Permalink
well i think there's a middle ground between 'dodd-frank changed everything, the glory days are over' and 'dodd-frank will change nothing, wallstreet is exactly the same'. 'don't like your bonus? quit' is a genuine change of tone, even if it's on some level a pr stunt, at the very least it's the *right* pr stunt. the industry is going to employ fewer people and increased regulations can't have *no* effect. and I think the american public, esp the younger generation, has soured on finance to an extent that might itself affect things. this is gonna continue, esp if romney gets the nomination. that said, I don't like the 'well, that's the end of that story' tone of the article.
― iatee, Sunday, 12 February 2012 21:15 (3 years ago) Permalink
kudos to dayo btw for starting this thread when he did
― BIG HOOS aka the steendriver, Sunday, 12 February 2012 23:08 (3 years ago) Permalink
lol I was kind of mad that the OWS threads were hijacking all the wall street discussions
― http://www.youtube.com/watch?v=s1tAYmMjLdY (dayo), Sunday, 12 February 2012 23:09 (3 years ago) Permalink
dayo works for goldman sachs fwiw
― iatee, Sunday, 12 February 2012 23:10 (3 years ago) Permalink
he is the guy who counts the money
― iatee, Sunday, 12 February 2012 23:11 (3 years ago) Permalink
my fingers hurt
― http://www.youtube.com/watch?v=s1tAYmMjLdY (dayo), Sunday, 12 February 2012 23:13 (3 years ago) Permalink
sux 4 u, new batch just arrived
― iatee, Sunday, 12 February 2012 23:14 (3 years ago) Permalink
― http://www.youtube.com/watch?v=s1tAYmMjLdY (dayo), Sunday, 12 February 2012 23:25 (3 years ago) Permalink
the inner dimon won't be caged:
― s.clover, Wednesday, 15 February 2012 17:59 (3 years ago) Permalink
Doug Henwood on, well, everything:
So in return for hundreds of billions of dollars in public funds used to keep the financial system from going under, the banks will emerge from this crisis largely unscathed. One reason for this is Wall Street’s skill at lobbying, and its ability to spread huge amounts of cash around Washington. As Public Citizen documented, between 1998 and 2008, Wall Street spent $5 billion in campaign contributions and deployed 3,000 lobbyists across Capitol Hill to get its way. While $5 billion sounds like a lot, it was less than a third of the Goldman Sachs bonus pool for 2009, and spread out over a decade. Wall Street has a lot of money, and Congress can be bought on the cheap.
But, as I argued earlier, Wall Street also represents the commanding heights of the economy, the central mechanism by which ruling class economic power is formed and exercised. It’s only surprising to people who don’t understand this that Washington dances so faithfully to the bankers’ tunes.
...Thanks to a small band of people who moved into a private park near Wall Street last September 17, political discourse and activism have taken the most hopeful turn that I can remember. I have my reservations about the ideological orientation of a lot of the Occupiers. And it’s hard to know whether this spirit will survive the winter—or the banalizing tendencies of presidential election campaigns. But I’m going to bracket that for now and admit to more than a shred of hope that things are turning in a seriously better direction. Finally.
― Literal Facepalms (Dr Morbius), Wednesday, 15 February 2012 18:10 (3 years ago) Permalink
― s.clover, Wednesday, 15 February 2012 19:40 (3 years ago) Permalink
― s.clover, Wednesday, 29 February 2012 18:22 (3 years ago) Permalink
a+ trolling but I can imagine that pr-wise pissing off every single journalist in america is prob not in his long-term interests
― iatee, Wednesday, 29 February 2012 18:28 (3 years ago) Permalink
“Newspapers -- I went and got this one day just for fun -- 42 percent payout ratio, which I just think is just damned outrageous.”“Worse than that, you don’t even make any money!” Dimon said, directing his comments to those in the media covering the company’s investor day and drawing laughter from his audience. “We pay 35 percent. We make a lot of money.” JPMorgan posted $19 billion in profit last year.
“Worse than that, you don’t even make any money!” Dimon said, directing his comments to those in the media covering the company’s investor day and drawing laughter from his audience. “We pay 35 percent. We make a lot of money.” JPMorgan posted $19 billion in profit last year.
fucking bond villain i swear to god
― BIG HOOS aka the steendriver, Wednesday, 29 February 2012 19:18 (3 years ago) Permalink
― curmudgeon, Thursday, 1 March 2012 18:07 (3 years ago) Permalink
Despite the difficult environment, New York firms paid roughly $20 billion in year-end cash compensation to their employees. The average bonus was $121,150, down just 13 percent from the year before as the head count shrank. In 2006, the year before the financial crisis, the average investment bank employee took home a bonus of $191,360.
― curmudgeon, Thursday, 1 March 2012 18:10 (3 years ago) Permalink
I would think newspapers probably have a higher payout ratio BECAUSE they don't make as much money.
― simulation and similac (Hurting 2), Thursday, 1 March 2012 19:11 (3 years ago) Permalink
fuck this industry
― the jeremy lin of YANIV (cozen), Thursday, 1 March 2012 21:23 (3 years ago) Permalink
― s.clover, Tuesday, 6 March 2012 18:53 (3 years ago) Permalink
no honor among thieves
― flagp∞st (dayo), Tuesday, 6 March 2012 22:07 (3 years ago) Permalink
― Literal Facepalms (Dr Morbius), Sunday, 11 March 2012 22:10 (2 years ago) Permalink
JP Morgan Cheats:
― Literal Facepalms (Dr Morbius), Tuesday, 13 March 2012 21:47 (2 years ago) Permalink
The ex-Goldmanite op-ed that's lighting up the blogosphere:
― o. nate, Wednesday, 14 March 2012 19:26 (2 years ago) Permalink
this is not just a Goldman Sachs problem, but a Wall Street problem. Goldman was not alone in selling clients CDOs stuffed with shaky subprime mortgages, for which it paid the SEC $550 million a couple of years (and two Greg Smith bonuses) ago. Nor was it alone in pumping Russia full of debt in the late 1990s, nor was it alone in parachuting out of the market ahead of its clients in 1929.
Of course, this won't change the view of Republicans and the likes of Geithner and others.
― curmudgeon, Wednesday, 14 March 2012 19:48 (2 years ago) Permalink
"We used to make things in this company. Like synthetic credit products. And the clients liked them!"
― s.clover, Wednesday, 14 March 2012 20:01 (2 years ago) Permalink
like i said in another thread, if you started at Goldman Sachs when Henry Paulson was running things and you're looking at that as some sort of golden era of ethics and integrity, then you've wearing some pretty strong blinders or have a strange definition of ethics and integrity.
― kurwa mać (Polish for "long life") (Eisbaer), Wednesday, 14 March 2012 23:50 (2 years ago) Permalink
I'm slightly sympathetic to him because he's from a foreign country - like I could maybe see him arriving here and buying everything about ~america~ without too much skepticism
― flagp∞st (dayo), Wednesday, 14 March 2012 23:53 (2 years ago) Permalink
it is good that someone who was on the inside is taking a few good kicks at an obvious villain in a relatively well-respected and well-read forum. also, i don't want to jump on him b/c i'm positive that as we speak there's an army of well-paid flunkies working overtime and at Goldman Sachs's behest to tear him down as we speak.
that said, there is a certain naivete to his column.
― kurwa mać (Polish for "long life") (Eisbaer), Thursday, 15 March 2012 00:02 (2 years ago) Permalink