Do the same thing and expect differant results!

Drumpot

http://www.rte.ie/news/business/2015/0722/716381-regulators-asset-backed/

Imagine an alcoholic bar manager. As the owner of the establishment You have caught him over and over again drinking on the job. Its not always been a problem, but he does tend to over indulge on his poison. Hes a good worker and many regul(ato)ars enjoy his company. However, from time to time he makes huge mistakes. He just cant help himself, he just wants to consume the entire stock! Once he nearly burnt down your entire bar so you put him on leave for awhile..

Slowly, over time, he rebuilt back up your confidence in him. You start to discuss the possibility of things going back to the way they used to be. The establishment is doing ok, but it lost a few regulars when the bar manager was put on leave. It might help improve profits if he was rehired in his original position.

If theres one thing that I have learned over time, its that people at the heads of countries, economists and quite intelligent people can be ridiculously short termist. Worst still they conveniently forget and convince themselves that mistakes made in the past wont be repeated based on hollow changes that don't really amount to much..

Feels like the whole world is retarded when it comes to the financial services system. Keep propping it up and deregulating it as if the people who take the risks that cause the problems have any less motivation to do the exact same thing again.

NachoBusiness

https://www.youtube.com/watch?v=KjmjqlOPd6A

Agricola

Politicians are certainly short termist because thats the essence of their career, short terms. Get into government, hold onto power as long as possible, then get replaced by another bunch of people who tell the electorate what they want to hear in order to get into power. Rinse and repeat. Sensible long term economic goals will never work in a system like that.

Fleawuss

Of course there will be return to that. Capitalism is built on profit and profit must not be limited or controlled or guided. Greed is good you know. I see Apple made 10 billion profit in the last quarter and its stock fell 7%. The reality is that private enterprise can be trusted to do one thing: try to make a killing. It's not just "buyer beware" it's society beware and environment beware and future beware.

topper75

Fleawuss wrote: »

I see Apple made 10 billion profit in the last quarter and its stock fell 7%.

Isn't stock price reflecting expected future earnings, rather than past earnings?

Anyway - one thing I do know is that no state company in a Marxist utopia is going to be capable of creating and mass producing i-phones. Taking away the profit motive would be disastrous.

Oh, and doing the same thing and expecting different results isn't the definition of madness as often claimed. Otherwise, how would people learn to play music?:)

Fleawuss

topper75 wrote: »

Isn't stock price reflecting expected future earnings, rather than past earnings?

Anyway - one thing I do know is that no state company in a Marxist utopia is going to be capable of creating and mass producing i-phones. Taking away the profit motive would be disastrous.

Your first point is accurate and a great one to illustrate part of the problem. Your second point is also largely accurate imho except for the bit about taking away. We have to move beyond either Marxism or unfettered predatory capitalism. There has to be a wary balance.

Drumpot

topper75 wrote: »

Oh, and doing the same thing and expecting different results isn't the definition of madness as often claimed. Otherwise, how would people learn to play music?:)

I think in the context of banking and capitalism it is extremely stupid short term strategy.

If we use your example, its more like playing a guitar with your mouth and constantly wondering why your face and tongue are scarred from blisters!

topper75

Fleawuss wrote: »

Your first point is accurate and a great one to illustrate part of the problem. Your second point is also largely accurate imho except for the bit about taking away. We have to move beyond either Marxism or unfettered predatory capitalism. There has to be a wary balance.

Agreed. Smart person who could devise the right compromise.
Marxism has failed in practice in all attempts I'm aware of. Capitalism as practiced has survived and will survive but has been responsible for gross injustices, largely based on the rich keeping themselves rich regardless of bad bets (crony capitalism). The barriers to entry issue blights the efficient and just provision of good/services such as energy and finance. Also not everybody starts on the same base so it doesn't provide a true meritocracy.

Drumpot wrote: »

I think in the context of banking and capitalism it is extremely stupid short term strategy.

If we use your example, its more like playing a guitar with your mouth and constantly wondering why your face and tongue are scarred from blisters!

Fair enough!

The_Valeyard

Politicians, never make a promise you can't break.

darkpagandeath

This is Ireland I look forward to Regulation they keep promising. How many Regulators do we have currently ?