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taking its course

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From Glen Newey at the LRB blog:

Last week, Keele University announced plans to shut down its philosophy programme, in the name of ‘efficiency’ savings. It’s beside the point here that the methodology underlying the calculations is flawed and its specific application to philosophy very suspect. The 27-page document presented for consideration by the Senate on 23 March is a fully fledged statement of the post-Brownean credo, apart from the latter’s insistence on student demand as a touchstone of academic worth. Philosophy at Keele doesn’t enrol enough students to make money; but then, it is subject to a cap imposed by the government: there are fewer than 60 places this year. You break somebody’s legs then complain that they can’t keep up.

“You break somebody’s legs then complain that they can’t keep up.” Yes… Just about every internal political and bureaucratic wrangle I’m involved in at the moment follows the selfsame logic. Take what is fit, starve or mangle it for a bit, set it back into the wild, watch it struggle, watch it starve… then deliver with a shrug the aperçu about the wonders of natural selection, the sublimity of nature taking its course, that you had prepared well before the start of the entire process.

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March 21, 2011 at 12:07 pm

“the shade of some dead accountant”

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Charles Lamb on the South Sea House:

Situated as thou art, in the very heart of stirring and living commerce, — amid the fret and fever of speculation — with the Bank, and the `Change, and the India-house about thee, in the hey-day of present prosperity, with their important faces, as it were, insulting thee, their poor neighbour out of business — to the idle and merely contemplative,to such as me, old house! there is a charm in thy quiet — a cessation — a coolness from business — an indolence almost cloistral — which is delightful! With what reverence have I paced thy great bare rooms and courts at eventide! They spoke of the past — the shade of some dead accountant, with visionary pen in ear, would flit by me, stiff as in life. Living accounts and accountants puzzle me. I have no skill in figuring. But thy great dead tomes, which scarce three degenerate clerks of the present day could lift from their enshrining shelves with their old fantastic flourishes, and decorative rubric interlacing their sums in triple columniations, set down with formal superfluity of cyphers with pious sentences at the beginning, without which our religious ancestors never ventured to open a book of business, or bill of lading — the costly vellum covers of some of them almost persuading us that we are got into some better library, are very agreeable and edifying spectacles. I can look upon these defunct dragons with complacency. Thy heavy odd-shaped ivory-handled penknives (our ancestors had every thing on a larger scale than we have hearts for) are as good as any thing from Herculaneum. The pounce-boxes of our days have gone retrograde.

I’m having trouble keeping up, I must admit. It will be easier to finger up the dust when it’s all finally done and dead. More to come…

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October 24, 2008 at 12:41 pm

Posted in crisis, markets

rate cut!

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From Bovary:

Ses expansions étaient devenues régulières; il l’embrassait à de certaines heures. C’était une habitude parmi les autres, et comme un dessert prévu d’avance, après la monotonie du dîner.

Futures down 289 after the Rate Cut of Global Unity! Everything that happens makes sense if you’ve read your Flaubert! I should write a business book!

Do you remember the beginning of the end of Bovary? There are a few endings, but do you remember what makes her start the process of killing herself? “Dans vingt-quatre heures pour tout délai.” – Quoi donc? “Payer la somme totale de…” And so on. The bursting of a shock-market bubble, her own personal little credit crisis, it is.

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October 8, 2008 at 1:30 pm

Posted in crisis, flaubert, markets

blame where blame is due

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This is classic.

The government is expecting the equity holder and bank management to suffer for conducting business legitimately in a regulated environment. If there is to be a day of reckoning then surely most of the blame should come back to the regulator and the government that removed the responsibility for oversight of the banking industry from the Bank of England to the FSA.

Class action lawsuit time! The banks can get in line right behind all those classics of vulgar apocryphal chitchat – you know, the woman who spilled coffee on herself at McDonalds, and the burglar suing the homeowner after he slipped entering through the back window and broke his ankle, and the guy who was injured while surfing on top of a subway car (but, dude, they could have posted a warning sign or something…..) and takes action against the MTA….

It’s quite a distinctive use of the word “legitimately” in that paragraph, no?

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October 8, 2008 at 12:15 pm

Posted in crisis, markets

“trade the volatility”

with 4 comments

Lots of this stuff boggles the mind, requires very very patient and concentrated searching around for slow explanations. Found a new favorite stumper today: one keeps finding folks advising the masses to “trade the volatility.” Trade the volatility… hmmm…. I know we live in strange days, when the demonic abstractions imagined into life by hedgefund mainframes are strutting across the brick and mortar surface of the world, spewing contagion as they pass. But it is hard, on first thought, to think exactly how one would devise an instrument that would allow you to “trade the volatility” in the markets itself. I can wrap my head around certain levels of abstraction – like trading risk, for instance, I can see how you can do that.

Volatility trading is still in its infancy, and not surprisingly critics abound. Naysayers suggest volatility is, in essence, a description of an asset’s return, not an asset unto itself. Yet most market players adopt the perspective that if it has a price, then it can be traded. (from here)

That seems like a good question from the naysayers in the crowd. And the response of the “market players” is pitch perfect. But there actually are instruments that you can buy (VIX futures contracts and VIX options…) to do this, but what are they, like, made of? Or are they simply pure betting table gambles, made of nothing more than the bet that you’d place at Ladbrokes on Wayne Rooney to score the first goal again Portsmouth this week? If you were doing it on “main street” (ugh) I guess you’d stock up on shotgun shells and can openers as well as oceanfront condos. But I can’t imagine that that’s how it works with these contracts.

Sometimes I wish I’d spent just a wee bit of time in the industry (where all of the lovely men I went to high school with are, er, or perhaps were) so I could understand this stuff. But that’s foolish isn’t it – they don’t know what these things are either. Silicon nightmares, terminator wisdom so far restricted to screens.

Does anyone know? Care to take a guess? OK, seriously, to work with me. Right now….

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October 8, 2008 at 10:23 am

Posted in crisis, markets, wtf?

“this blind world”

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From the NYT review of the new movie of Saramago’s Blindness:

In the movie, as in the book, every character but one — an ophthalmologist’s wife played by Julianne Moore — comes down with the title affliction, which is, bafflingly, contagious. (And which, just as mysteriously, manifests itself not as darkness but as total, blank-page whiteness.) “In most films everything is based on the eyes,” Mr. Meirelles said. “You cut to show where the character is looking, that’s how you tell stories. It’s all about point of view, and I wasn’t going to do this film showing only Julianne’s character’s point of view. So how do you get people involved with the characters when you can’t put them in the same position visually?”

His solution, he said, was to “put the audience in this blind world, to try to deconstruct the image, if I can say that.” (Just this once, but don’t let it happen again.) “Sometimes the image is washed out, sometimes it’s out of focus, sometimes the framing is totally wrong, deliberately,” he continued, “and toward the end of the film I even tried separating the sound from the image — showing a character with his mouth shut, but you’re hearing his voice.”

“It was all very experimental,” he said. “Very scary.”

We live in interesting times. One spends their weekend moving around as one is accustomed to moving around on weekends. Let’s see… Saturday went over to Highgate to spend time in a park, noticed that Andrew Marvell used to live where this park is now, ate lunch, returned to same establishment to drink a bit more once the kiddo was asleep in her stroller, watched the US debate on tv. Sunday: walked from Archway past Highgate Cemetery and through Parliament Hill to Hampstead where I ate a crêpe avec jambon et frômage from that cart there, saw Russell Brand eating lunch (didn’t realize he was anything other than a Guardian sports columnist till, like, yesterday – I’m still new to the UK), and almost bought Mary Beard’s new book on Pompeii. While doing all this, found time to purchase snacks and groceries and beer, watched Arsenal lose, watched the Mets lose, made headway on the novel that I’m reading and enjoying, and read some but not all of the newspapers I’d purchased.

So very bourgieboho and parental, no? Everyday life as it’s been lived in the age of the rising tides, the rising boats. It was a sunny weekend in London, so the parks were full, the outdoor spots at the eateries were packed.

But of course all this normalcy is playing out against the backdrop of some very very dire analysis that I don’t need to link to – I’m sure you’ve read it all already. Let’s not even talk about the bailout – even its authors don’t seem at all convinced that it will be effective in any palpable way. And really, it’s been clear from the start that that’s not the point. But the general consensus seems to have turned toward the inevitability of something very depression like, and perhaps deeper even than the depression with which we’re all familiar. So… the destruction of the last vestiges of the better bits of the state, soaring unemployment, insane inflation, the end of consumer credit, the evisceration of retirement accounts, mass repossessions of homes, bank failures beyond the means of the authorities to insure, and did I mention soaring unemployment? It was, apparently, ten minutes to midnight seven minutes ago – this is the takeaway from the papers and internet today.

Ordinary weekend days in London. I’ll go to work tomorrow and put the finishing touches on my lectures for the week. Reports of the imminent collapse of the world financial order. Collapse. Rubble. I’ll try to make it to the shop on campus, for once, before they sell out of the sandwiches I like. I’ll order that Beard book from Amazon; I’ll check CNBC.com thirty or forty times especially once the US markets open.

Listen: not everyone has the luxury of this disjunction. I know that very very well, and it’s true a hundred times over. Titannic numbers worldwide never got lifted on the upswing, or were directly punished by it. More locally, lots have already lots their shirts. I know this. I know it very very well.

But that said, this disjunction is something else. I suspect just about everyone who is in a position to is feeling it by now. And there are a bunch of things to say about it. The temptation is simply to keep detailing the uncanniness of the whole affair, where life goes on as an LCD mushroom cloud rises over the affluent corners of the earth. It is so easy to aesthetize it, to keep typing it out – especially since it feels like we’ve been in training to paint in just the tones we have on hand now for a decade or more.

But there’s something more profitable to do than painting for painting’s sake at the moment. Something is showing itself through the very failure of lived experience and financial news to line up properly. It is, perhaps, a promising pedagogical situation – or even a perfect political entry point. It goes something like this: the difficulty that we have reconciling our day to day lives with the problems in the market, the trouble that we might have actually believing that everything might be about to change, and change for the worse, and change as if overnight, is an appropriate difficulty to have. The fact that our lives are running along as they are, but might be ruined in a blink of an eye by a spreading virus of speculatory paper gone bad, is irrational, insane. I work, I am paid by my employer, I spend my money on the things that I need and sometimes just want – what should that have to do with credit default options or short sold stocks or baroquely structured derivatives?

It actually doesn’t make sense, not any sense at all. Our blindness before this thing, our inability to see (or see and then believe) what is about to happen, makes all the sense in the world. We are the realists; the world has conspired against realism.

If there is a “we,” we would do well to make much of the mysteries of abstraction, the violence that it has but should not be permitted to bring down upon ordinary life. We should cast this as a problem of a simplicity whose rights are being infringed upon by an unnecessary and illicit complexity. We should encourage those who would to wonder about the reasons why the normal circuits of life are being interrupted by factors that can’t even be understood by their administrators, their authors. For there is no reason why this must be – there is no reason that whatever these people in the financial districts of the world get up to, legally or illegally, normal life need be interrupted in any way. It will be, it is almost sure to be, but this is the tragedy. This is not, whatever the metaphors distributed by the news media and politicians, a meteorological event, an unforeseen occurrence. This, we should say, is not at all the case. It is not a sudden storm, a “black swan” – the difficulty of seeing this is part and parcel of the problem at hand…

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September 29, 2008 at 1:07 am

counterbranding, slow economists, etc

with 4 comments

Would rather they’d stop branding this as ours, as what our ism would look like:

This is the state of our great republic: We’ve nationalized the financial system, taking control from Wall Street bankers we no longer trust. We’re about to quasi-nationalize the Detroit auto companies via massive loans because they’re a source of American pride, and too many jobs — and votes — are at stake. Our Social Security system is going broke as we head for a future where too many retirees will be supported by too few workers. How long before we have national healthcare? Put it all together, and the America that emerges is a cartoonish version of the country most despised by red-meat red-state patriots: France. Only with worse food.

They keep writing that piece, over and over and over. It’s attributable to the stupidity of the people who write for the respectable papers and magazines, their pavlovian ass-covering refusal to think for even a few seconds. That said, despite it’s actual origins, it has the look of a perfect last ditch PR campaign concocted in the dark recesses of one of the Madison Avenue imaginariums, doesn’t it. They starve the beast, reward their cronies, and the American public walks around thinking “Jesus, this is what France is like? This is socialism?”

One really does wonder also about economists. I’m not going to name names – because it’s potentially libelous – but I’m pretty sure one very prominent econoblogger (used to work in the Clinton admin, now teaches) who has been consistently wrong about this whole thing has actually pulled posts from early last week and from the week before. It shouldn’t come as such a surprising relief finally to see Krugman (not the one I’m talking about) come forward against what is happening.

The Paulson plan calls for the federal government to buy up $700 billion worth of troubled assets, mainly mortgage-backed securities. How does this resolve the crisis?

Well, it might — might — break the vicious circle of deleveraging […] Even that isn’t clear: the prices of many assets, not just those the Treasury proposes to buy, are under pressure. And even if the vicious circle is limited, the financial system will still be crippled by inadequate capital.

Or rather, it will be crippled by inadequate capital unless the federal government hugely overpays for the assets it buys, giving financial firms — and their stockholders and executives — a giant windfall at taxpayer expense. Did I mention that I’m not happy with this plan?

The logic of the crisis seems to call for an intervention, not at step 4, but at step 2: the financial system needs more capital. And if the government is going to provide capital to financial firms, it should get what people who provide capital are entitled to — a share in ownership, so that all the gains if the rescue plan works don’t go to the people who made the mess in the first place.

[….]

But Mr. Paulson insists that he wants a “clean” plan. “Clean,” in this context, means a taxpayer-financed bailout with no strings attached — no quid pro quo on the part of those being bailed out. Why is that a good thing? Add to this the fact that Mr. Paulson is also demanding dictatorial authority, plus immunity from review “by any court of law or any administrative agency,” and this adds up to an unacceptable proposal.

I’m aware that Congress is under enormous pressure to agree to the Paulson plan in the next few days, with at most a few modifications that make it slightly less bad. Basically, after having spent a year and a half telling everyone that things were under control, the Bush administration says that the sky is falling, and that to save the world we have to do exactly what it says now now now.

But I’d urge Congress to pause for a minute, take a deep breath, and try to seriously rework the structure of the plan, making it a plan that addresses the real problem. Don’t let yourself be railroaded — if this plan goes through in anything like its current form, we’ll all be very sorry in the not-too-distant future.

Really doesn’t seem all that difficult to see this for what it is… except, apparently, for anyone in a position to say something about it. Thankfully PK’s getting there, but too little and too slow and too late, I’m sure.

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September 22, 2008 at 9:01 am

Posted in crisis, markets

the socialisation of finance

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From Willem Buiter’s Blog at the Financial Times:

If financial behemoths like AIG are too large and/or too interconnected to fail but not too smart to get themselves into situations where they need to be bailed out, then what is the case for letting private firms engage in such kinds of activities in the first place?

Is the reality of the modern, transactions-oriented model of financial capitalism indeed that large private firms make enormous private profits when the going is good and get bailed out and taken into temporary public ownership when the going gets bad, with the tax payer taking the risk and the losses?

If so, then why not keep these activities in permanent public ownership?There is a long-standing argument that there is no real case for private ownership of deposit-taking banking institutions, because these cannot exist safely without a deposit guarantee and/or lender of last resort facilities, that are ultimately underwritten by the taxpayer.

Even where private deposit insurance exists, this is only sufficient to handle bank runs on a subset of the banks in the system. Private banks collectively cannot self-insure against a generalised run on the banks. Once the state underwrites the deposits or makes alternative funding available as lender of last resort, deposit-based banking is a license to print money.

That suggests that either deposit-banking licenses should be periodically auctioned off competitively or that depostit-taking banks should be in public ownership to ensure that the tax payer gets the rents as well as the risks.The argument that financial intermediation cannot be entrusted to the private sector can now be extended to include the new, transactions-oriented, capital-markets-based forms of financial capitalism.

The risk of a sudden vanishing of both market liquidity for systemically important classes of finanial assets and funding liquidity for systemically important firms may well be too serious to allow private enterprises to play. No doubt the socialisation of most financial intermediation would be costly as regards dynamism and innovation, but if the risk of instability is too great and the cost of instability too high, then that may be a cost worth paying.

These are issues that must be pondered not just in Washington but everywhere modern financial intermediation has taken root or is threatening to do so – in the financial heartland (Wall Street, the City of London, Frankfurt, Zurich, Tokyo and Dubai) and in the emerging markets that until recently were having their ears bent on the desirability of precisely the kind of financial institutions and markets that have now turned into trillion dollar collapsing dominos.

From financialisation of the economy to the socialisation of finance. A small step for the lawyers, a huge step for mankind. Who said economics was boring?

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September 18, 2008 at 9:19 am

Posted in crisis, markets, socialism

a suggestion

with 22 comments

The Guardian has a relatively interesting feature talking to prominent leftists and leftishists about the crisis and capitalism.

It would be a good thing if “we” could all get together and come up with something. Whether or not it seems likely that “we” could ever actually prevail even just slightly in a moment like this, it does seem like it’s part of the deal that we’d at least, you know, give it a poke.

But I’d like to make one suggestion before / if we do. If you happened to be selected to be left public intellectual of the month (seriously – I’m being serious now), and are asked to speak or write about the current crisis, by all means avoid expressions of schadenfreude, apocalyptic glee, giddiness and the like. Ordinary people are not going to share your popcorn as you settle in to watch this film. Say something about what should be done – normal folks want their retirement accounts to stay semi-there, want to keep a job, and don’t want their bank deposits to vanish into a bad dream of a customer service call that never gets answered, they’d like not to haul their currency to the Wal-Mart in a wheelbarrel – all reasonable things. 

Not trying to be hypocritical about this, believe me. This blog has been about 80% apocalyptic glee from the start, and is in part a chronicle of ten years that I’ve spent watching CNBC and waiting for the Big Event. It’s just, you know, we’re really bad at the PR side of the game, and it’d be nice to see “us” take things seriously, for once.

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September 17, 2008 at 11:35 pm

bounce

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The incessant, miraculous deferral of the catastrophic rupture, the long-awaited break. Always a bounce. That’s the thing about abstraction – that’s the thing about it’s marvellous ability to keep the story rubbing along. Come on now, try not to think jouissance. Try not to think interminable foreplay, a ten year tease. The rewewed high street shops, the cost of a terraced house, the dip and peak of oil. The end of the story will never arrive.

Today like many days, the futures numbers were in, the European markets had spoken, the crowds had delivered their wisdom, the columnists had typed – braving a bit of hysteria, the ever-reasonable had allowed a soupcon of panic into their columns. The disaster metaphors had circled, abroad and in our skulls. Perfect storm, category 5, smoke rising over lower manhattan, past the window at speed. And then the historical comparisons: Like the 1980s, but bigger. Like the 1930s, only worse.

It will never arrive, the collapse. It will never arrive because they will not let it. That is the thing about abstraction, storytelling. But also, the nationalization of failure, counterfeit, false paper, the spoils of ill-fought battle, the moral hazard. Something else will fail, the currency, the state, the national welfare, but not this.

The EKG is not broken; it’s the patient that’s undead.

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September 15, 2008 at 2:42 pm

cage match

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CNBC:

“This is a perfect storm in a perfect storm,” said Justin Urquhart Stewart, investment director at 7 Investment Management. “It’s a return to pure capitalism, the survival of the fittest — government can’t and won’t bail everybody out.”

That’s the spirit! Get off your welfare-engorged asses and fight like the rest of us!

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September 15, 2008 at 1:52 pm

Posted in catastrophe, markets

you gotta watch yr metaphors, helicopter ben

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Lots of ill-omen and bad-history to navigate in our lexical sea…




It’s interesting to note that in the original speech which earned Bernanke his handle, he discusses both the helicopter drop of broad-based tax cuts and the possibility of governmental investment (unto even nationalization of assets?) as possible remedies to a deflationary spiral. But no one ever calls him Comrade Ben – I wonder why not.

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January 22, 2008 at 11:19 am

Posted in markets, metaphor

narrative arc

with 2 comments

(found here…)

Compare:


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August 16, 2007 at 1:31 pm

Posted in form, markets

form and the breaking of form

with 3 comments

The word “trope” is one of those little dialectic-at-a-standstill words that we literary types love: it means both what it means and the opposite of what it means at once. Etymologically, it is a “turn,” a change of direction. But we use it to indicate something static, sclerotic – something rigidified into a cliché, a token for thoughtless circulation. Combined, we get an all-too-expected dynamism, a movement that follows the path of expectation such that we wonder whether “movement” was the right word from the start. This is why we love to use the word to describe the narrative form bad movies – a trope of the horror genre etc. Something happens, but it is the same thing that always happens…

On CNBC’s main page, there are three columns: from the left, we have “Top Stories” (which looks like an RSS feed, with the top story blurb previewed, then we have a column of stock indexes and their red or green arrows, and finally a column (that you ignore) of ads for upcoming tv shows and links to video content.

I am interested, right now in the first column, the News one, and in particular the little snippet preview of the top story, which during US business hours is almost always about the performance of the market right now. I’ve kept a little text document on my desktop where I clip the previews in as I read them. Here’s a few that I’ve compiled over the past few days:

Stocks turned lower again after rallying on the Fed’s move to add more money to the banking system. “You had a psychological bounce off of 13,000 (in the Dow),” said Patrick Fay of DA Davidson. “Personally I think its being overdone and every talking head is talking about the end of the world but the reality is that it’s not.”

Stocks remained lower in the final hour of trading but were well off their worst levels of the day. “Ultimately the system is strong and the ECB and Fed are there to support the market if need be,” said Jason Trennert of Strategas Research Partners.

Stocks fell to the lowest levels of the day amid anxiety about the credit markets and a weak earnings outlook from Wal-Mart. “We’re seeing a mini-panic, which is symptomatic of a market that is finding a bottom,” said Michael Metz of Oppenheimer.

Stocks seesawed as declines in basic materials shares offset gains in financials as the Federal Reserve added more funds to the banking system. “I think we might have a little bit more on the downside but we might be close (to a bottom),” said Steve Massocca, co-chief executive officer at Pacific Growth Equities. “I think it’s a good time to put money to work.”

It is as if they are written by a computer, compiled by an algorithm like the one that organizes the Google News page. Bleak data followed by semi-optimistic quote from a trader or analyst. It is just a trivial thing, a stylebook efficiency that keeps the jobber who generates the news bubbles in-line, but it is also the enactment – and perpetual reenactment of a tiny little story line, where the cold winds of the impersonal figures (who stand in for the place that “nature” used to play in the story we tell ourselves) are met and matched, are faced, by the solitary and heroic human being, his ability to see behind and above and around the numbers – and, above all, his own narrative sensibility, his sense of how stories like this one, the storyline we sometimes call “creative destruction,” go. Sundown, sunup – after bloodletting, regrowth. Of course it is just an effect of the sort of market cheerleading that is the raison d’être of CNBC – which spends far more time selling its viewers the market to its viewers than reporting on what the market is actually doing. But it is also an example of the tiny storylines, the little gnomic tropes, that run the world now, or at least try to. We find them everywhere – in the political sphere, the employment market, and of course in the realm of the geopolitical (“they only understand one thing, force” and the like…)

As we all know, however, form becomes most meaningful in its breakdown. This is a lesson that the modernists didn’t invent, but which they intensified, brought to the center of our understanding of how art works and how it means.

Look back at the capture I’ve inserted above. Apparently, today, the guy who writes the blurbs wasn’t able to find a sunny human on the trading floor to complete his preformatted narrative arc.. Look at the blank space there in the image, the empty spot where the rest of the story is supposed to be… A full four or five lines of text missing…

Stock indexes are sharply lower following worse than expected housing data, more troubles for Countrywide Financial and as traders have accelerated unwinding yen carry trades.

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August 16, 2007 at 12:37 pm

Posted in form, markets

s.o.s.

with 4 comments

CNBC this morning:

Most traders agree that this is not a liquidity problem, it is a credit problem. There is plenty of money around–it is just not getting to the players who need it, like the mortgage companies.

If that’s true, why are so many clamoring for a rate cut? If it is a credit problem, cutting the funds rate will make little difference, particularly since they have already flooded the market with liquidity. It will not magically make billions available to Countrywide or any other mortgage lender.

Still, traders like Charles Campbell at Miller Tabak has pointed out that this is a psychological Bear market–and in these kinds of markets a Fed cut–stock traders hope–will have the psychological effect of freeing up money to the players who need it.

Maybe. What is really needed is for major financial players, a strategic player (like Fannie Mae or Freddie Mac), or foreign players, to step in and make the market function normally. Expanding Fannie and Freddie’s role–allowing them to buy more mortgages–is widely advocated, but generally opposed by their regulators.

Hmm… “Make the market function normally.” A contradiction in terms? Like telling someone to “Act naturally…” Remember, Mr. Smith is watching…

Martin Wolf, yesterday in the FT:

Not so Jim Cramer, hedge fund manager and television pundit, who declared last Friday that chairman of the Federal Reserve, Ben Bernanke, “is being an academic!…My people have been in this game for 25 years. And they are losing their jobs and these firms are going to go out of business, and he’s nuts! They’re nuts! They know nothing! . . .  The Fed is asleep.”So capitalism is for poor people and socialism is for capitalists. This view is not just offensive. It is catastrophic.

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August 16, 2007 at 11:20 am

Posted in markets