Tuesday, 9 March 2010


In response to revelations about Greece short-selling themselves and floating their solvency on currency-swaps, the main economic players the EU, Germany and France, are proffering new regulations to curtail this sort of market necromancy.  They are calling for limits to trade driven off of speculation that's been abstracted away from anything that remotely resembles a commodity to be found in this dimension or this plane of being, a future losing-bet deferred.  It's not only mathematical spin that makes things like derivatives inaccessible and incomprehensible, but also some of the loopholes that corporations are herded towards that have absolutely floored me during my protracted studies towards an MBA and make it small wonder that everyone owes everyone else and no one can cough it up.  Brokers, and businesses, it seems only make money by shifting risk.  Admittedly, there's just a smattering of actual financial mathematics, whose variables are divined somehow, and teh coursework has focused on leadership and management ethics, but even what can ultimately be stated sans formulae is incredibly obtuse and counterintuitive and sneaky.  Math is supposed to make complex things clearer--not lend credibility to some hollow shell game.  One doubts its letting out a big secret, but it's more profitable for a company to float its capital on bonds and debt, rather than reinvest its own earnings, due to how the US tax codes are written.  Who would bet on that?