Rating Agencies Fail


Glad to see that the Rating Agencies are (yet again) in the headlines for all the “right” reasons…of course this is only my “opinion”!

Politics has still not realized the mistake that was made: Adopting that mindset. For the trader in his hyper-competitive market, his psychopathic behaviour makes perfect sense. For a society, it is pure cancer. As one German entertainer put it nicely:

I’d like to know if she [german chancellor Merkel] has a market-compliant democracy in mind. And if so, I’d like to know if she’s also thought about a democracy-compliant market.

via Rating Agencies Fail | Free Everything.

 

If you think "ruling elites" are a fantasy…think again


Now I am not suggesting that the US is representative of the rest of the world but I would certainly be curious to know how the UK picture looks! According to Michael Moore circa 400 families in America have more money than the other 300 million!

Hopefully, the “apathy” that allowed this situation to develop is a thing of the past. We were all too busy buying into the consumerist myth of “financial independence” (that was really the DEPENDENCE that fuelled individual (ego) and institutional greed)  So, unless “the 99%”, quickly, rediscover the power of INTERDEPENDENCE and utilise the communication tools at our disposal, life in the post-critical society i.e. after the next financial collapse, will make austerity measures look positively appealing! Read more of this post

Analysis of 2008 Collapse Shows Economy Networked for Failure


This is an interesting analysis of SOME elements of the growth of inter-connectedness. But if you want to view the big picture in a more easily understood, “user friendly”, format you may want to follow this link (click on the logo) :

Ontonix UK logo

In this White Paper we showcase the crisis anticipation capabilities we, at Ontonix, have developed  and deliver using our unique OnstoSpace technology – by analysing macro data from the US Economy Property for the period period between 2004 and 2007.

Economists have pointed to financial industry entanglement with the entire U.S. economy as a crucial factor in the 2008 collapse, but Bar-Yam’s team drives the point home with new clarity.

In a study, published November 16 on arXiv.org, the researchers used network-mapping tools to analyse the relationships between 500 corporations with the highest stock-trading volume. These were linked to oil prices, bond prices and interest rates.

From this analysis came two striking figures. The first is a map (below) of links between companies in five key economic sectors: technology, oil, other basic materials, finance linked to real estate and other finance. As of 2003, the sectors are relatively distinct, with real estate isolated. By 2008, they’re a tightly linked jumble, with finance at the centre.

Visualization of market linkage change from 2003 to 2008 in technology (blue), oil (dark grey), other basic materials (light grey), finance including real estate (dark green) and other finance (light green).

via Analysis of 2008 Collapse Shows Economy Networked for Failure | Wired Science | Wired.com.