You call it flawed economy I call it machine efficiency.

I was just reading over at the BBC an article China's woes and a still flawed global economy by the economics editor Robert Peston. He argues all sorts of scenarios and endemic problems in the machinery of world economics. I had to chuckle.

Do you know what I see? I see that prospectors have invested huge amounts in China. They have only done this in a climate where the percentage rise in profits is at a certain point of health. Their fresh-hold is huge. The other week I saw that Soros had sold all his shares in certain Chinese online companies because their profit had fallen to 28%. I saw this as a very bad omen. I think these troubles in China will not go away and the bubble is burst for good in terms of huge fast profits and the crème( or "crap" depending on your view point) of world investors' interests.

The Chinese golden age of huge profits may be over. May be it is over for good? Perhaps China will now have to make do with the same peaks and troughs we in the West make do with. They have been the latest victim of the profit game played by the international big boys of investment. After seeing all this I am convinced the machinery of investment banking is as efficient and ruthless as ever. It is meant to be flawed. We all know why that is.

Where next, boys?

a reply to: Revolution9

It's all a cycle that is designed and the people with wealth know that while it has it's highs, it also has it's lows. They are exploiting the biggest flaw in capitalist societies in that capitalism requires growth. But perpetual growth is impossible. Eventually you run out of consumers, resources or money.

They ride it high, divest, let it crash and then put their money back in to the system. Such is the capitalist way.

Someday I hope we grow up and create something new that gets away from this cycle.

a reply to: Revolution9

I think your question is: Does the economic turmoil that we see and the difficulties that exist come from the independent actions of individuals, or is there a cabal that makes plans and then the individuals implement them. Big difference in motivation, maybe not so much in effect.

a reply to: Revolution9

So are you saying you agree with the way things are run in the financial sector? Wall street, big banks, bailouts (using tax payer money) for those banks, currency wars etc.?


It might be "machine efficiency" for the individuals who have already hoarded some wealth. BUT it's making it more and more difficult for the regular Joe Shmoe to take care of the wife and kids. Joe works his butt off, 80 to 100 hours a week and it's still only just enough for them to get by, meanwhile there are CEOs and other execs who work 20 - 30 hours a week but are raking in hundreds of thousands of dollars salary. You don't see anything wrong with the disparity here at all? Is this just "the nature of capitalism" and Joe Shmoe wasn't in the right place at the right time and his fate is a result of such?

I'm just amazed anyone other than the super rich at the top see this as a sound economic system...

originally posted by: FamCore
a reply to: Revolution9

So are you saying you agree with the way things are run in the financial sector? Wall street, big banks, bailouts (using tax payer money) for those banks, currency wars etc.?


It might be "machine efficiency" for the individuals who have already hoarded some wealth. BUT it's making it more and more difficult for the regular Joe Shmoe to take care of the wife and kids. Joe works his butt off, 80 to 100 hours a week and it's still only just enough for them to get by, meanwhile there are CEOs and other execs who work 20 - 30 hours a week but are raking in hundreds of thousands of dollars salary. You don't see anything wrong with the disparity here at all? Is this just "the nature of capitalism" and Joe Shmoe wasn't in the right place at the right time and his fate is a result of such?

I'm just amazed anyone other than the super rich at the top see this as a sound economic system...

I hate it. I think it is very primitive. It is greedy and socially careless. It is not a victimless action. That is how I feel about it.

I just find it most peculiar that people are happy to believe that these guys just fudge along and just happen to make billions from their mistakes, lol. They know EXACTLY what they are doing. China is just the latest investment quick earner for the West. It is only the very wealthiest that benefit by this. The smaller investors can be just as much if not bigger victims.

After all these years these banking investors have been at work do you really feel like they just blunder along and making all these billions is somehow linked to the constant economic so called "blunders" that are not blunders at all, but investment strategies of when to buy and when to sell, that these kind of investors like huge profits and when that is not the case they are sure to pull out as quickly as they came.