let's suggest to ourselves
the regs over hazard debate
must notice a fact

hi fi is a floating crap game
not physical location wise
but market and institutional location wise

maxim to al hi fi ers

after the latest post debacle rage cools...

when the new improved boundary lines
of the new improved reg ring are clear

once you got the rubes playing again
and
in a state of secure folly

start moving more and more
of the high stakes play
to innovative great games.....just outside the reg ring

moral of tale :

" hazard "
in a world like this
always exists in fact its sought out by necessity

where perpetual need
for ever faster private gain exists

unreg rough neck fronteer markets
will appear and of their own making
yup and go for the full cycle too

pop up prosper and wreck themselves

wreck themselves so bad in fact
they threaten the welfare of the "real" economy

and as nite follows day
sanity requires
the latest great smash up's perps
receive
a "one time only " bail out errrr....
to save the system of course
....from itself of course
and
just for the sake of all them
ass hole innocent
threatened "real "economy players

saying
" well
it won't happen again"
is true
not precisely
"in this way " that is

cause we're gonna reg it up
so it can't happen "this way b" again
you know
force this market to join
the civilized markets
and be a good citizen

...
what vexes me some

why allow this spec game in the first place

what at its best does the real economy gain by allowing these gamblers
to be our collective eyes and ears
our co ordinators of first resort

self centered gamblers
folks ..gamblers without a concious social intent
ie miracle invisible handing
with a vengence

self centered gamblers
over eyes and ears
society might otherwise provide itself

like
a more transparent
society wide
co ordinated system of credit
ie
a more fully socialized economic system
without dark private gain corners

yes bright light rents
but publically doled
perpetually challenged
and
retained provisionally
for their expediency alone
not worship-ed
as the quintessence of americanisn
the highest form
of the universal individual right
to pursue happiness

after all we ought to minimize asyymetry
not promote it

in the last analysis
are we not all
our sisters agent ??

if optimal social mechanism design
is the issue
why waste time and ingenuity
on
how can we tame
a wild spec marketeer community
enough to harness
our "real " economy safely to it

when other higher forms of social organizations
are out there in draft form

"Congress appropriate $xoo billion to some special purpose entity for the purpose of buying new bank capital"

exactly
have uncle s
buy the needed beefed up
equity buffer stake
in these errrr..."are they or
aren't they solviossos"
larry summerslide
assigned to
"the p.e.c.-er heads"
(the private equity community)

Posted by: op | Link to comment | March 31, 2008 at 12:10 PM

op says...
"Hubris. That's the only word to use for the interventionists and central planners who think they can outsmart the regulated"

hey pal no one got outsmarted
they got out run
run away from one admin till the next
gives you a free pass

if the track down was forever
then the regulated could still
run
but they couldn't hide ... not forever

not hide and still hold on to their share
of the above ground wealth
at any rate
does any one see this as indeed a comic strip

formula

laff tracked slap stick
cycle of bad boys of wall street

fill in the blank .....

after weeks of three panel hi jinx
the boys
prank # 17134
ends in massive caulk up

final panel

miss prim patented
wagging stifled smiled
indulgent hair bunned head
as she
once again
for the umpteenth time
exclaims her feel good last line
at those bad bad boys

"alright alright guys ...
i'll see to the clean up..
.... this one time ...but...no more of this
promise me "

the boysin chorus

"yessssss miss prim ...weeee promise "

the wacky further mishaps and
sanguinary adventures
of ....
the hi fi in' hazard brothers (llc)

mike
is right you pinko wankers

there is no talking mister ed "free market"
but if a reification like that could talk
it surely wouldn't
call for

"...the government to create a bank
and centrally plan the availability of credit "

hey
come dah gosbank mickey me lad

i have a nice
salt mine job
all lined up for you
down shaft 13