Comments On: Volatility Vanishing from Markets: After Neoliberalism by Charles Mudede http://slog.thestranger.com/slog/archives/2013/02/20/volitility-vanishing-from-markets-after-neoliberalism Comments On: Volatility Vanishing from Markets: After Neoliberalism by Charles Mudede en-us Copyright 2013 The Stranger. All rights reserved. This RSS file is offered to individuals, The Stranger readers, and non-commercial organizations only. Any commercial websites wishing to use this RSS file, please contact The Stranger. webmaster@thestranger.com (The Stranger Webmaster) Thu, 23 May 2013 00:00:01 -0700 Thu, 23 May 2013 07:15:00 -0700 Foundation http://blogs.law.harvard.edu/tech/rss <![CDATA[Re: Volatility Vanishing from Markets: After Neoliberalism]]> @7, Che,

The facts aren't concerned with whether you don't entirely disagree or agree, the facts remain the facts, sonny.
Posted by sgt_doom]]> Thu, 21 Feb 2013 10:10:25 -0800 The Stranger <![CDATA[Re: Volatility Vanishing from Markets: After Neoliberalism]]> Posted by Reader01]]> Wed, 20 Feb 2013 13:52:23 -0800 The Stranger <![CDATA[Re: Volatility Vanishing from Markets: After Neoliberalism]]> Posted by Pope Peabrain]]> Wed, 20 Feb 2013 11:43:43 -0800 The Stranger <![CDATA[Re: Volatility Vanishing from Markets: After Neoliberalism]]>
In that spirit, here's a comment on the coming fracking/natural gas bubble:

http://digbysblog.blogspot.com/2013/02/f…
Posted by cracked]]> Wed, 20 Feb 2013 11:32:25 -0800 The Stranger <![CDATA[Re: Volatility Vanishing from Markets: After Neoliberalism]]>

Posted by Supreme Ruler Of The Universe]]> Wed, 20 Feb 2013 11:31:22 -0800 The Stranger <![CDATA[Re: Volatility Vanishing from Markets: After Neoliberalism]]>
@1 Also consider that the peak of American living standards is considered to be 1974, about the same time that Samuel Huntington's "The Crisis of Democracy" appeared to counsel the 1% how to beat it back. Neoliberalism really got started in the last half of the Carter Administration with the deregulation of airlines and trucking, and spiraled out of control from there.

@sgt_doom I don't entirely disagree, but it's a comment thread, not a dissertation committee.
Posted by Che Guava]]> Wed, 20 Feb 2013 11:04:34 -0800 The Stranger <![CDATA[Re: Volatility Vanishing from Markets: After Neoliberalism]]> Wealth of Nations) was thoroughly against market speculation -- as Keynes also became towards the end of his career.

Speculators are all about destroying markets, rigging markets, financial manipulation, making money off of money off of debt, ad infinitum, while producing nothing other than unwarranted economic and social destruction.

The Act of Predation


Once more, as there is a never-ending flow of misinformation and disinformation out there, this is a brief synopsis of the cause behind the global economic meltdown, and the continuing deleveraging against us. All this information is public domain and easily accessible.

The chief two main, interlocking causes are ultra-leveraging and the largest insurance swindle in human history.

Please recall, AIG had to be bailed out or Hank Paulson and the Bush (and later Obama) administration claimed everything would collapse.

Why did AIG have to be bailed out? Because they sold $460 billion of (unregulated) insurance, with the potential payout of from $20 trillion to over $40 trillion --- none of which monies they had on hand, naturally!

Now who were to receive those payouts? JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, Deutsche Bank, UBS, Credit Suisse FB, etc., etc., etc., and various and sundry hedge funds.

Take for instance John Paulson and his hedge fund, which got together with Goldman Sachs and contrived various fraudulent financial instruments, CDOs, full of the crappiest loans possible, designed to fail, for which Paulson, and Goldman Sachs, purchased tons of unregulated insurance from AIG (credit default swaps) at $1.4 million apiece, with a payout of $100 million apiece, when the CDO failed (or a credit event occurred). The example investigated by the SEC, which fined Goldman Sachs a paltry amount for their financial fraud, was the Abacus CDO.

This was how Paulson "earned" that $3.4 billion --- financial fraud is financial fraud: if some dastardly fellow designed and inserted a "loophole" to make murder legal during the month of May, then proceeded to murder all the people in his neighborhood, that wouldn't be moral or right, no matter how "legal" the newsies and corrupt politicians claimed it to be.

So to this was all contrived and designed financial fraud. That was exactly how the people at Magnetar Capital made billions, while 96% of their deals went bad.

And many, many other hedge funds, banksters, derivatives dealers and traders, etc., profited from this mass financial fraud.

The ultra-leveraging? That was how they pumped up all those credit derivatives --- or securities based upon debt --- but in the past decade they sold credit derivatives, based upon credit derivatives, based upon credit derivatives . . . ., based upon debt. The pyramidal layers were almost endless.

And that was how the various insurance swindles were realized, all those phony layers of leveraging, or ultra-leveraging, had to fail --- were designed to fail --- and the unregulated insurance (or loopholes by design) "legally" had to be paid out, which is where the Federal Reserve and US Treasury came into the picture.

Please understand, that an unlimited amount of unregulated insurance --- or an unlimited number of credit default swaps --- can be purchased by entities having no direct connection to the financial instrument (such as the Abacus CDO) in play --- similar to someone having no connection to your house, purchasing thousands of insurance policies against it --- then burning it down had receiving a colossal fortune from the insurance companies --- from the destruction of your home!

Add to that the use of that ultra-leveraging for massive speculation on energy/oil, food commodities, various other precious metals, etc., ad infinitum, and the market churn, and transfer of wealth, became historically unprecedented: a gargantuan replay of the Great Crash and Great Depression, with far longer and wider-ranging outcomes.

If you don't know what caused the economic meltdown by this time, and are still uncertain of who should be in jail, or executed, consider yourself a complete and total moron!

http://www.occ.gov/publications/publicat…

Posted by sgt_doom]]> Wed, 20 Feb 2013 10:48:00 -0800 The Stranger <![CDATA[Re: Volatility Vanishing from Markets: After Neoliberalism]]> Posted by pfffter]]> Wed, 20 Feb 2013 10:47:23 -0800 The Stranger <![CDATA[Re: Volatility Vanishing from Markets: After Neoliberalism]]>
Posted by CATSPAW666]]> Wed, 20 Feb 2013 09:25:37 -0800 The Stranger <![CDATA[Re: Volatility Vanishing from Markets: After Neoliberalism]]> Posted by Tent_Liberation_Army]]> Wed, 20 Feb 2013 08:54:12 -0800 The Stranger <![CDATA[Re: Volatility Vanishing from Markets: After Neoliberalism]]> Posted by Tent_Liberation_Army]]> Wed, 20 Feb 2013 08:53:03 -0800 The Stranger <![CDATA[Re: Volatility Vanishing from Markets: After Neoliberalism]]> Posted by Ken Mehlman]]> Wed, 20 Feb 2013 08:49:56 -0800 The Stranger