Wednesday, August 1, 2018

The Real Problem Is That Smart Capital Doesn't Sit Still At All Any More

You know it used to be that the mavens of money would chide us lowly working people for not saving enough. Savings, it was berated upon us, were the investment power of a growing economy, after all, and without savings, where would we be?

They would tell us that, of course, at the beginning of a new year. This, after telling us, only a few months previously, that it was the consumer who really needed to get out there and make this a good Holiday Season for consumer products that made American business thrive so well; and they continue to do this, pretty much the same way, on at least a semi regular basis.

The ironic thing now is to wonder why big business itself doesn't save more money. You know, for a really extreme weather kind of day, or bubble burst they think they're too big too care about. They have, after all, been awash in cash for quite a few years, and counting now. But the name of the game has mostly been stock buybacks, and buying into some new kind of vertical, or horizontal, or combinations of both, integration to get bigger because bigger is now the big thing.

So the question then becomes why are the banks in the lending business at all any more when no one wants to leave money sit there; especially if the economy got used to having virtually free money. And how long do you think it will be before there is war declared, by a certain demented clown car of an administration, on the Fed if it tries to make money interesting enough, all by itself, to induce anybody to let it sit as something other than a demand deposit.

Let us also recall that we must now think of money as electrons in electronic circuits. And that this implies, very fundamentally, a new kind of movement emphasis, and a whole new expectation of what a cycle of investment, process creation, and marketable deliverable, will require. And if you can do that sort of thing, more and more, by simply crunching numbers, to get more numbers, why would you want to bother with banks at all in the first place? Because, at that point, you will be expanding on your own expansion, limited only by where to put the servers, and where to get the power to run them.

An explanation of the yield curve — and why Trump's anger at the Fed isn't likely to change it

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Year after year, thousands of firms across the economy swallow their competitors or other businesses in the supply chain to control more of their market.


The tax cuts have put stock buybacks in the spotlight. Here's what they are and why you should care.


Access to cheap electricity can make or break a cryptocurrency mining operation, and firms angling to strike it rich in an industry where delays can and will cost digital money will do just about anything to get it, as soon as they can.

[Post Note: So naive. And yet so predictable that so many of you would think you know what it is to "Dance With The Devil," thinking then that you don't have to worry about being the "hindmost" at all any more. What a foolish notion. One of these days, you'll see. J.V.]
One Of These Days


[Post Note: Because money is now like electrons in electronic circuits, NetFlix, as well as Amazon, is in a quite precarious position. Investors may have been relying on the ever increasing rise in subscription numbers as the means to keep believing in this as an ongoing investment opportunity, but the limits of that may already be seen by both companies, and investors, hence the new trend lines for price increases that both companies are now exploring. And in that will be a crucial test. Can they raise them fast enough, without raising them too much too fast?

But in this also is there the other factor. The factor that Elon Musk has been learning ("Live By The Market, Die By The Market"). That whatever market your selling in, it is itself subject to its own market turbulence, and disruptions.

At the most basic level, though, is this: what happens when increasing global instability leads to decreasing ability to purchase much of anything, for the vast group of working people who fuel our consumer economy, other than food, lodging, health insurance, and the cost of getting to and from work, as well as the cost of staying in the rat race at all -- which usually comes in the form of some sort of self medication. And where do you think "Binge Watching" is going to end up as a priority, when it's all you can do to pay for what you consume while you are watching; as in the alcohol, or pot, or whatever other type of drug, you have to have to really make the binge watching complete; of which, of course, the newest Hi-Fi VR game might just begin to qualify; especially if they get any kind of cleverly, fully integrated, haptic physical feedback system in place, so as to make it a truly "full body" experience. But then, of course, the quality of your workers is going to start going down and then what do you do? And so on. J.V.]

How Is Netflix Actually Making Money?

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