In Free Market and Free Trade Capitalism — the maximization of profit, and minimization of risk, is the end goal of every profit driven capital enterprise, whether in Wall Street, in the High Street, in Main Street, in the City, in Beijing Financial Street, in Shanghai’s Bund, or anywhere else in the world for that matter.
Yet during this instance in time, and on this land — people make money out of thin air. They make money selling hot air, foul air or even worse. Because it is only here where the ability to “securitize high risk” is brazenly called Financial Innovation. Or it is called FinTech which is a “sleigh of hand” approach of disguising “High Risk Toxic Derivatives” as something other than high risk, and then sell it off, “Fully Securitized” to the unsuspecting and the usually “Greater Fool” Banks, Investment Firms, Institutional Investors, and even Retail Investors — literally making money “skinning” babes in the woods.
Of course making money and vast profits out of thin air while shedding obligations — while it seems like magic, is still a con job. And if you believe the FinTech promise of the Banksters this time around — this is exactly the type of thing that ought to be left unregulated, so the show can go on. Three cups and a pea never seemed so fair either….
Yet to me — a rather savvy Financial wizard — this seems to be the exact moment that we should regulate the toxic junk that comes out of some firms in Wall Street and floats in our Capital and Equities Market system.
It is an evil mix of effluent waste, and bundling of junk into a steamy smelly broth of shite, and it needs to be cleaned up. I only say this because I understand the situation and am bewildered by the lack of regulation in this arena today especially after the crash of 2008 that is looming above us again as the new Sword of Damocles.
Many of my colleagues would disagree wanting more Laissez Faire freedom to be “pushing” product down the throat of the Banks and fattening them up like French Geese ready to burst their liver for some stinky Foie-Gras.
And even if you like your duck foie-gras for breakfast, you must admit that it’s rather silly to slavishly push the argument that we should trust the herd mentality of Banks and Financial Institutions today, even MORE blindly than when they were allowed to crash the Economy the last few times…
So, let’s all wake up folks, and smell the coffee, so that all of us and the ducks — just might get to survive and thus live another day, till the time that we really have to cook the peking-duck…
If you need a more explanatory note on this — you could join my High Stakes Economics Conference this weekend in Seattle.