Finance and Stuff

Thoughts on finance and other stuff by Johan Lindén

Tag: Occupy Wall Street

Inflation? Deflation? Financiation?

So what has happened lately in finance? Where is all the money going?

Federal Banks all over the world have printed money in true Keynesian style to counteract a falling economy.

In Europe, the European Central Bank, lent banks half a trillion for a mere 1% interest. It is basically the same blues that has been sung for the last couple of years and it is still going strong. I guess it ain’t over until the fat lady sings.

So where is this money ending up and why does not price indexes for goods and services increase?

Well, because a few people in the financial sector is taking all this money and are making themselves very rich. Think of it, you pay 1% interest, and the inflation is around 2-3%. So by just avoiding losing money you will make money with this ingenious system created by politicians and bankers.

If the market would have set the interest instead of politicians, would it be as low as 1%? Is all risk really calculated in that 1%? Now that is a ridiculous thought!

Libertarians vs. Occupy Wall Street

I wonderful diagram that shows the common traits among libertarians and the occupy wall street group. But also what differs the two groups of people.

One can really see what side has the best argument and solution. But both sides see that the current system is totally flawed to put it mildly. However, it will not work to replace a currently flawed system with another system that may even be worse.

I let you be the judge whose side has the best logics and solution the current political system.

occupy wall street libertarians socialistsPicture from:

The Common Denominator why both Left and Right-wing Activists Occupy Wall Street

The Common Denominator which brings both Left and Right-wing Activists to Occupy Wall Street.

left right politics libertarian socialism occupy wall street

… too much government. Which ironically boils down to be only a socialistic problem. So come on socialists, think again.

As an added bonus also check out this next cartoon:

government bailout banks

Symmetry in Compensation – Occupy Wall Street

Nassim Talab claims that the reason for the demonstrations on Wall Street is about asymmetry in compensation. Thus to fix this problem we need symmetry in compensation.

Symmetry in compensation basically means that the upside for bankers on Wall Street, the rewards, should equal the risk for losses. What we have seen so far is that bankers have made million dollar bonuses, and they still are, but when screwing up they get bailed out by the tax payers.

Here is the video by, Nassim Taleb, one of the most important persons of the century:

Cartoon for the Weekend

riots at wall street iphone

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