Showing posts with label greece. Show all posts
Showing posts with label greece. Show all posts

Monday, 3 September 2012

Taxing Paul to stimulate Peter to pay Paul..

Order in the Financial System is as fragile as the atom; the hitherto basic unit of matter. Paradoxically, the word 'atom' is derived from the Greek word atomos or 'indivisible', which is, as we know, not exactly accurate.      

Now, if the ancient Greeks gave us atomos and the Romans gave us fissio or 'fission' and modern Greece gives us sovereign ineptitude; is modern Italy the next economic catalyst of global consequence? If today's Financial System, against which we measure modern evolution, is wholly reliant on stability to hold its form, would it be foolish to imagine a systemic financial fission in our immediate future? If change comes from crisis we could, as we speak, be witness to the dawn of a new financial energy.

If the System taxes Paul to stimulate Peter to pay Paul which is as it is, why shouldn't Paul have the option to write down Peter and pay less tax? If the Financial System has promised Peter that he could be Paul with a little stimulatory luck, then the System needs Paul to make good its promise to Peter even though Peter can never be Paul. If Paul needs Peter or he wouldn't be Paul but Peter and if Peter becomes Paul then Paul is no different from Paul and shouldn't be taxed because Peter is no more.. Now if Paul is not Peter and Peter can never be Paul then Peter lives under a financial illusion conjured up by the System. Seems to me things would be far easier if Peter stayed Peter and Paul was left to be Paul because only the System says Paul is better than Peter.. 

Friday, 4 November 2011

Unpredictable white noise..

Investors and traders who succumb to headline-induced volatility do themselves an injustice. Media-promoted emotive pap (nonsense), usually accompanied by subjective talking-head 'expert' commentary, often abrogates from intelligent strategic insight...  As a practical example review yesterday's intra-day chart for any of the major European equity indices. Greece's to-referendum-or-not-to-referendum .., BBC-rumoured resignations / 'official' political retractions, Super-Mario's surprise rate cut on debut and his subsequent commentary at the ECB Q&A press-conference each had a profound peak & trough influence on the global markets...

It would be wise, perhaps, to lift the emotive-veil and understand stock-valuations, earnings expectations, consumer sentiment, the cost of credit, regulatory change, dividend yield & default swaps before contemplating any strategic adjustments or revision.

Very few professionals deny the premise that successful traders / investors usually confine short-term headline-driven market shocks to the emotive bin. Most appreciate that mainstream market-commentary is white noise and or conjecture, at best...