Friday, 17 July 2015

Bankers and Skin in the Game? Taleb continued And Samuel Taylor Coleridge, Ezra Pound and Lord Byron?

Thanks Juanjo, Regulations will be fascinating. A model start up balance sheet cross referenced to regulatory requirements is what I aim to find. I am sure that such a thing already must exist already the the links you already gave have proved interesting I have been comparing Goldman Sachs and JP Morgan Institution Profile Page Goldman sachs
88. Common equity tier 1 capital ratio (calculated using advanced approaches)
10.71% JPM AND 12.61 GOLDMAN

89. Tier 1 capital ratio (calculated using advanced approaches)

12.08% JPM AND 14.17% GOLDMAN

90 Total capital ratio (calculated using advanced approaches)

13.65% JPM AND 16.33% GOLDMAN

What these Equity and Capital ratios tell us is that the Capital which is represented by collateral belonging to Borrowers is greater than than the level of Equity represented by shareholder capital at risk which would be termed equity at best there is 30% of real stuff at risk as it were with roughly half of the real stuff being actually the security offered up by the borrowers themselves the rest 70% is frsh air in a fiat money system and in a fiat money system based on debt its thin air at interest.

Yanis Varafoukis in his comments published on the EU Bail out states that 1 billion of the 87 billion for the so called Greek bail out will represent investment in the Greek economy proper.

The percentage of Capital ratios stated above does not address the question of what paper instruments count as Collateral for capital formation purposes for instance it takes no account of re hypothecated assets, one suspect there is much more double counting in the system than is health. The best description of this I have ever found is in Samuel Taylor Coleridges published diaries Table Talk. Table Talk.
this from 27th April 1823.
The national debt has, in fact, made more men rich than have a right to be so, or, rather, any ultimate power, in case of a struggle, of actualizing their riches. It is, in effect, like an ordinary, where three hundred tickets have been distributed, but where there is, in truth, room only for one hundred. So long as you can amuse the company with any thing else, or make them come in successively, all is well, and the whole three hundred fancy themselves sure of a dinner; but if any suspicion of a hoax should arise, and they were all to rush into the room at once, there would be two hundred without a potato for their money; and the table would be occupied by the landholders, who live on the spot.
Lord Byron knew a thing or two about Greece I suppose we ought to ignore the neo liberal Economists and consult the romantic poets. Ezra pound curiously, not a Romantic Poet but poet non the less wrote a book A B C of Economics, famously tries for treason supporting Mussolini and Fascism in world war two if you read ABC of Economics you have to ask who are the fascists now? 

Work without Hope

By Samuel Taylor Coleridge
Lines Composed 21st February 1825
All Nature seems at work. Slugs leave their lair—
The bees are stirring—birds are on the wing—
And Winter slumbering in the open air,
Wears on his smiling face a dream of Spring!
And I the while, the sole unbusy thing,
Nor honey make, nor pair, nor build, nor sing.

         Yet well I ken the banks where amaranths blow,
Have traced the fount whence streams of nectar flow.
Bloom, O ye amaranths! bloom for whom ye may,
For me ye bloom not! Glide, rich streams, away!
With lips unbrightened, wreathless brow, I stroll:
And would you learn the spells that drowse my soul?
Work without Hope draws nectar in a sieve,
And Hope without an object cannot live.

Turn to fascism, Second World War

Pound came to believe during the 1920s that the cause of the First World War was finance capitalism, which he called "usury", and that the solution was C.H. Douglas's idea of social credit, with fascism as the vehicle for reform; he had met Douglas in The New Age offices and had been impressed by his ideas.[71] He presented a series of lectures on economics, and made contact with politicians in the United States about education, interstate commerce and international affairs. Although Hemingway advised against it, on 30 January 1933 Pound met Mussolini himself. Olga Rudge had played for Mussolini and had told him about Pound; Pound had already sent him a copy of Cantos XXX. During the meeting he tried to present Mussolini with a digest of his economic ideas, but Tytell writes that Mussolini brushed them aside, though he called the Cantos "divertente" (entertaining). The meeting was recorded in Canto 41: "'Ma questo' / said the boss, 'è divertente.'". Pound told Douglas that he had "never met anyone who seemed to GET my ideas so quickly as the boss."[72]
A number of Pound's books were published in the 1930s, including ABC of Economics (1933), ABC of Reading (1934), Social Credit: An Impact (1935), Jefferson and/or Mussolini (1936), and A Guide to Kulchur (1938). In 1936 James Laughlin – who had visited him in Rapallo in 1933 as a 20-year-old student – set up New Directions Publishing, and acted as Pound's agent, finding publications to accept his work and writing reviews.[73]