[ExI] Capitalism 2.0 was Status as human motivator

[Jeff Davis]

On Tue, Apr 26, 2011 at 11:49 PM, Keith Henson <hkeithhenson at gmail.com> wrote:

> I used the term "hanging offense" and I mean it.  The current practices of that segment of the economy will ruin the US and any other country that permits this kind of gambling.  What Goldman Sachs did (and is still doing) is only a short step from what "Bernie" Madoff is in jail for.  There needs to be a *serious* overhaul of the laws to prevent the parasitic playing with paper and calling it "profits."  Capital needs to be *invested* in productive stuff, mining, manufacturing, energy utilities, public works and the like.

Thank you Keith.  Perfectly stated and exactly right.

Computerized trading has made it possible to algorithmically analyze
and manipulate trading activity and then parasitically "skim""profits"
without any enhancement of productivity.  Gaming the system this way
has always been around, but it may be that the computerized
enhancement of this non-productive "profit skimming has reached a
level that endangers the underlying productivity.

..."serious" overhaul of the laws...

In spades.  Absolutely.  Immediately.  A transaction tax (ie every
transaction taxed) would be a good place to start.  That would put a
damper on the millisecond in-house trading activity (which feels like
borderline-criminal manipulation and zero productivity to me)   I'd
also like to see complete transparency in all trading, in house and
out.  I would not be averse even to nationalizing the banking system
-- investment and retail -- completely, just plain taking it out of
the private sector.  The long and ignoble history of thievery in the
business of big money flows just begs for it.  Enough's enough.  The
world economy is too important to the welfare of too many "regular"
people to allow it to continue as a computerized rigged casino.
That's not Capitalism, it's Cannibalism.

Best, Jeff Davis

    "Everything's hard till you know how to do it."
                                   Ray Charles