My Commonsensical economic and the view of 2008 Global Finanical Systemic Meltdown

Seems to me this whole article in essence 
http://www.nytimes.com/2009/09/06/magazine/06Economic-t.html?pagewanted=1&em 

Current Financial mess is mostly attributed to those who practice Free Market. When Free Market believers reached critical mess, Free Market changed laws and dominated the market.

Free Market is like religion, people believed without questioning. No common sense whatsoever. The idea of Free Market is like communism, never taken human nature into consideration, therefore doom to fail.

Free Market is based on the assumption that meritocracy is practiced, that the most capable and ethical/principled person is place at the right position for their skill sets.

What we had so far, is mostly base on the good-old-boyz network, cronyism and nepotism. Just another perverse version of old empires; look at BushCo and the likes of our corporate America.

This is no different from all the previous failed empires such that of Romans, as well all Chinese empires; or our Auto empire for that matter.

--------------------------------------------------------------------------------

“Unemployment is a deliberate decision by workers to take time off.”
LOL. Talk about clueless. Where are these people come from, Mars? Obviously, these people are over educated/book-learned, just another case of education does not equate to common sense. That’s why I never take people seriously who never worked in a real job, or their The first job is after college, until they are proven otherwise.

It seems, instead of looking at real economic events, as well get their Hands dirty and spend time where events are actually taking place (For Real Estate, go through the process of buying a house and talk to all people around), these so-call Freshwater theorists (ie, Lucas) sit in their office, dreamed up of all sorts of theory, and then cherry-pick events to explain their theories.

Real events such as the Great Depression, 1987 crash, Asia in 1997-8, Argentina in 2002, didn’t fit in their theory, so they just ignored them. So, the question is, how could people, specifically their colleagues, let them get away with this, and what does that say about their colleagues? 

In the Science field, scientists still trying to disprove Einsterin's Relativity Theory.

To add to the absurdity, they got a Noble Prize for it. And now, a Global Financial Systemic Meltdown as the result. Another example of Katrina, where the likes of BushCo, Ray Nagin and heckuva job Browny running the show. This also includes those running Wall Street, the Finance industry, as well all corporations in America. Layoff during a business downturn cycle to exacerbate the recession, seriously, why is this makes sense?

Any system that did not take human nature into consideration will doom to fail, as proven by Communism, and on the other extreme - Free Market Capitalism. This is just commonsensical if you analyze where it went wrong. I don’t need to read a whole bunch of books to tell me this, and I don’t believe anyone out there with such view yet.

From the article, the description of Keynes is in agreement with my thinking of keep people employed - job is the foundation of a strong economy.  But not like Greece or many of the European countries where the government is the biggest employer.

That’s why I said we are screwed back in 2004, when I heard 70+% of our GDP is based on consumer while we were outsourcing jobs and factories while importing cheap labors in the form of H1Bs. Who’s going to pay tax and buy stuff? We need to shift to a productivity based economy as oppose to a consumer based economy. This is just commonsense.

My solutions not just creating jobs by rebuilding infrastructure funded by government for this near-collapse meltdown, but also instead of layoff, shorten the work week for employees and let each employee chose whether they want a layoff or shorten hours. I am still perplexed as to why CEOs and executive management not seeing that layoff would only exacerbate the recession. How do they justify their 100s millions in salary?

Keynes seems to make a lot of sense. [And Keynes considered it a very bad idea to let such markets, in which speculators spent their time chasing one another’s tails, dictate important business decisions: “When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done.”] I might want to read further on this topic if I have the time. 

If we don’t have ups and downs, or the boom/bust of business cycle, but a steady economy with growth economy, isn’t this a better environment for most businesses? Would this be better for a business to project what is ahead and use their capital more efficiently? Would a business still have to reserve precious capitals for the worse case scenario such as a meltdown? Under this scenario, demands are not artificially heighten, but real demands. I am still playing with this idea.

On the baby-sitting case study from the article where not enough demand led to recession; well, we have social safety net such as unemployment and SS to spur consumer demands, hence more jobs. What I am hoping, is that as American consumers whining-down on shopping and step-up on savings as the result of this meltdown and gloomy job outlook, the rest of the Developing Worlds such as China, India, Russia and South America will step in.

AS for the future of economist, here’s a suggestion, instead of religiously followed a theory, why don‘t you set a goal to achieve, then applied whatever tools there are to achieve such goal. Example: Let’s say a stable and with growth economy is the best course for our country such we remain competitive in this globalized economy, instead of a boom/bust business cycle, then applied whatever that best achieve such goal, can be better regulation, new tools for the Fed, tools from Keynes or neoclassical, etc…..don’t just follow a theory like it is a religion. It needs to work in real life!

Being religious about the practice of Free Market Capitalism is what got 100s of millions of people all over the world suffer. And now all I see is a bunch of supercilious economists, after such calamity while 100s of millions of people suffering, still want to say Free Market Capitalism is the right economic theory for our economy.

And Finally.......

A note - Mistaken beauty for truth, and then there are those who mistaken youth-looking and beauty for dumb and incompetent.


Originally posted in Craigslist in 2009 :
https://forums.craigslist.org/?act=Q&areaID=3&ID=135806606
https://forums.craigslist.org/?act=Q&areaID=3&ID=135806947 https://forums.craigslist.org/?act=Q&areaID=3&ID=135807711
https://forums.craigslist.org/?act=Q&areaID=3&ID=135809839


10/21/2015Disclaimer:  I am sure what I said here is nothing new, but people were afraid to say the truth as special interest groups don't want the truth to be heard, and gave a megaphone to economists with theories such as Free Market Capitalism that benefit this special interest group, and so the 2008 meltdown, guess who got rich?  Look what happen to the Middle Class today.


***********************************************************************************

The most humane way of solving the world refugee/illegal immigration crisis is to create an International Economic zone in each continent loosely model after China's Special Economic zone, but should be modified according to the local culture; because most don't want to leave their homeland if they have a choice (I always provide a solution to anything I am against). 

***********************************************************************************



I posted on Washington Post's comment section in response to Stephen Bannon's:

“deconstruction of the administrative state.” 
 

 So that’s what Bannon is up to: small and decentralized government; another word, back to the old Wild Wild West era where only the strongest and the meanest survived.  This is just soooo old school, and would’ve been ahead of its time during the Clinton/Bush 41 Presidency; but is so outdated for today and the future.  If Bannon indeed read all those books, he should understand this.  Bannon should use this opportunity to prepare the population for the future where most jobs will be performed by robots.  If people said we needed to get rid of cars so horse owners can still make a living, does this make sense to you? 

The world is at a critical juncture, an inflection point of globalization and Digital Revolution (akin to the Industrial Revolution).  The last globalization ended in WWII, now added Digital Revolution to the mix.......

And please, don't raise girls as a princess, forcryingoutloud!!! 
 

Instead of the continuation of “survival of the fittest” since the beginning of life forms, human should evolve to the next level where human will focus on aspirations, where human are free and focus on innovation, creation, etc; instead of trying to survive and pay the bills. 

So, what am I saying?  That citizen should have a mean to live on while doing creative things.  Some of the more advance countries in Europe are ahead of us, such as Switzerland “Every month, every Swiss person would receive a check from the government, no matter how rich or poor, how hardworking or lazy, how old or young. Poverty would disappear “.http://nyti.ms/1yLAJh0

 

Communism failed, and so will laissez faire economics/capitalism, even partially implemented had resulted in the 2008 Global Financial Systemic meltdown begun by Reagan that resulted in the current loss of the Middle Class, and worsen by globalization and the Digital Revolution, also contribute to the dismantle of Glass–Steagall that resulted in the 2008 Global meltdown.  Another word, laissez faire economics is saying that Wall Streeters such as Gordon Gekko will do the right thing for society.

  De-regulation, akin to Google saying the growth is slowing, let’s go back to doing things during the startup days.  You see how scary that is?
 

Case in point of laissez faire economics/capitalism where there is no law or regulation, apply to sports such as Football where everything goes, who will win the Super bowl if there is no rules?  Or the Olympics where Russia used every means to win, and now caught cheating using drugs.

 

Countries such as Japan and South Korea where a few companies dominated the economy and the only game in town, citizen are essentially slaves to those companies; what happened when you realized you are just a slave?  I’ve worked for 2 Japanese tech companies in the Silicon Valley, one of the managers just came from Japan 6 months ago, could barely speak English, told me the word I used “concise” is not a word.  Did I mention most of the males in the Silicon Valley could barely walk and chew gum at the same time, those from Asia couldn’t tell a toaster from a computer, yet when I completed one of the most complex chip process projects on time and within budget, the males from Asia took the credit, I was fired, and scums rise to the top and the Silicon Valley are now full of scums in top level management, just like the novel “Lord of the Flies”.  Then tech talking heads keep saying they can’t find qualified American candidates, need more H1Bs, and been using sophistries and logical fallacy to justify why so women in the Silicon Valley/Tech industry. (http://casesynopsis.blogspot.com/2016/01/logical-fallacy.html)

 

Countries with weak central government such as Mexico, India, etc, where a few men are filthy rich, and the rest of the population are dirt poor, because like Microsoft, they used their power to ensure they will dominated the market, especially those connected to the top government officials; unlike America where we had a strong Middle Class, and so we have the most Billionaires, and the most educated that led to the most aspired population (ie  Sci-Fi and TV shows such as Star Trek) that led to the most innovative country.

 

Microsoft had dominated the software since the 1980s.  It used it’s dominancy to destroy every software initiatives that might threatened Microsoft’s dominancy such as Linux and oh so many software startups, and lives destroyed in the process.  I didn’t want to go into software because there were so few jobs.

 

Europe was decentralized, and decided to form the European Union after realizing they can’t compete.  Also, Putin has been using divide and conquer in Europe.  If Bannon had read “The Art of War”, he should know this.

 

Bannon also should think about how a decentralized government similar to Europe competes with Russia and China. 

 

Neither Communism nor Laissez Faire economics/capitalism had taken human nature into consideration, therefore is dorm to fail. 

 

And Bannon’s boss’s antic of grabbing women’s genital is part of this “survival of the fittest” that is motivated by the most primitive instinct - to procreate to ensure the survival of our species.  

 

Human’s next challenge should be “to go where no human has gone before"; understand that earth will eventually destroy either by gravitational pulls into the Sun, asteroids, WWIII, etc; NOT to enable dirty old men get rich so they could grab women’s genital or watch naked teenage girls changing in beauty contests; or buy teenage girls as sex slaves and imported from India using H1B, by Indian dirty old businessmen in the Silicon Valley. 

Your Physics Professor didn't tell you that earth is being slowly pull toward the sun, and will eventual be destroy by the sun, if earth didn't destroy by an asteroid first?  You see why most scientists worth their salt have a different perspective on life, don't really care much about the superficial material world that held dare by the likes of Trump, except to fund our aspiration and innovation.  You are going to die and you can't take it with you.  Your molecules will scatter all over earth, and you might be breathing in one of Einstein's molecule now.

The eventual solution for the eventual destruction of earth is that we will be looking for habitable planets, and colonialized those planet, while those who chose to stay on a spaceship will do so as the spaceship flow through space aimlessly.