Muses on Capitalism (Wall-street and Investment “Bangstas”)

Wall-street and Investment “Bangstas” are very confusing to me.  How do these entities make their employees and participants millions of dollars off the back of other companies?  They don’t actually create or produce anything.   They merely shuffle money around and place bets as if in a casino.

Even more confusing is how they can make money when companies or economies go in a downward spiral.  They call it shorting the market.  Seems to me like those who are “in the know” can’t lose.  Someone check the dice!  Are these financial institutions just creating a world-wide Ponzi scheme?

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10 thoughts on “Muses on Capitalism (Wall-street and Investment “Bangstas”)

  1. I’m sorry the world of finance is so confusing for you. I can tell you financial institutions make a great deal of money charging service fees. Also, it is quite easy to profit from a “downward spiral” through derivatives, options and the like.

  2. Hello aftertheperiod. Thank you for stopping by. I actually have some education in finance and over ten years of experience in professional services and corporate finance. I have a pretty good idea about what finance is but I am by no means an expert. Might I suggest that you read my post entitled “The Human World without Money, Debt, and Financial Institutions” and we can discuss under that post. It is a bit long but if you get through it we will have some common ground to begin a discussion. Thanks again for stopping by.

  3. Think of it this way: Banks facilitate private loans between people. For example, say I have $1000 I want to loan, but I have no idea where to find someone reliable to loan it to. Someone else has the desire to borrow $1000, but no idea how to find someone looking to lend. The bank acts like a broker, just like CareerBuilder does to help job seekers find employee seekers. The fact that someone else can also be a lender, or there can be ten $100 lenders, and the bank makes it all transparent, makes it even easier. The fees and interest rates are all about providing the “finders fee” for the bank, so it can continue to facilitate this process.

    • I have an MBA and have worked in Corporate America for over a decade in the finance field…I understand…your post seems like it is directed to a 3rd grader:)

      • Sorry, I should have read more of your posts before following up to this one. Never-the-less, it seems like your issue with the financial world is that the greed it represents is offensive to you. The question I would ask is: is that greed a reflection of the human institution, or of human nature?

      • WingedPanther: The path of determining what is “human nature” is a slippery slope. That old question: What is nature and what is nurture? This is something that is very difficult to determine. You seem to imply in many of your posts that “greed” is “human nature”. This contradicts your own statement that the human being is “made in the image of God”. Or is “God” greed?

        How do you make it work in your mind, this tacit nod to greed? Again, I will reference your own “god’s” statement: “It is easier for a camel to pass through the eye of a needle than it is for a rich man to enter the Kingdom of Heaven.” This is not a statement supportive of greed.

        I’ll tell you straight up what I think this means: You can’t reach the enlightened state of being that Jesus reached if you are ensnared in the traps of materialism. Greed is the worst manifestation of materialism and tantamount to “Hell on Earth”. Even if greed is “human nature” (a dubious notion at best), I think it’s impossible to miss the message of Jesus, which is that one should strive to overcome that nature in order to attain a higher state of consciousness and being.

        Your (and other Christians’) grotesque support of greed and capitalism is a bizarre contradiction, yet another odd chapter in the perversion of the original purity of what Jesus embodied.

        You folks just can’t get it right, can you? You want to really “follow in the footsteps” of your master? Then maybe it’s time for you to stop slinging nonsense about how “greed is good” and “more power to the Alpha Superchimps”, and instead renounce the material world and make your way to the desert for 40 days and 40 nights of fasting in search of a rebirth into the Kingdom of Heaven. Not “in your nature”? Right. That’s exactly the point. Time to get radical and overcome yourself. Jesus did it, and so can you. Oh but wait . . . . you think Jesus did it all for you, right? And that’s where it all went wrong.

  4. It is incredibly more complex than what WingedPartner is saying. The finance industry that exists today does not resemble any traditional image of the bank as being merely a lender of loans at reasonable rate to borrowers with a decent credit history. What you have are predatory lenders enticing borrowers to accept loans and mortgages well beyond their means and then to bundle loans from various categories (different interest rates, periods of maturity, safety of loans) together into various securities (Collateral-Debt-Obligations or Mortgage Backed Securities) and then pay rating agencies to obtain a strong grade for its safety and proceed to trade it on the market between big institutional investors, insurance firms and hedge funds. And then you have mammoths like AIG that “insures” these assets. Further you have derivative markets “hedging” such investments. At every stage, profit is made in the transaction and the interest is gained from the securities. And that is not even the full story of how ridiculous it is!

    • Bull’s-eye. In the realm of finance, it is a “tower of babble”. Call it Fantasy Finance. There’s not a single thing that is real about it except its unreality.

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