I take home the concept of “schmalpha”: keeping up the appearances of delivering alpha (better than market results) while in reality creating schmalpha (better than client results). Fill in society as the end client of the banking system, and you get an idea of what is going on. The harder banks run economy into the ground, the easier it is made for them raking in irresponsible profits (zero rates, perfect quarters…). Banks are dancing again, savers will have the honour of paying the bills (zero interests combined with monetization of banker’s damage).Dance along, bankers, nothing’s out there willing or able to stop you.

Fixing a sovereign debt crisis with more sovereign debt is akin to, well, prescribing easy money to treat the fallout from an easy-money-inspired bubble. Maybe I’m missing something here, but all these crises raise a common question. How can cure and cause be one and the same?(Caroline Baum on Bloomberg http://www.bloomberg.com/apps/news?pid=20601039&sid=aHgmxiU0fCj8 )Answer: because one and the same (banking sector and its puppies) nudge government executives into providing them with desired privileges as long as democratic voters lack the ability to stop them from doing this.Don’t hope for change, some things never will.

http://www.youtube.com/watch?v=3-t9z8OLoCg.dearest professor,good for you! finally someone, you, on the main stream mediareferring / talking about the “real world”. thank you..the clip above is for you, and your place of birth. istanbul.quirky clip it is but….real and deep i say. the good stuff..so much action and so many souls being tormented. this must be ..the purgatory of the blind..Tom Waits » Telephone Call From Istanbul Lyrics.All night long on the broken glasslivin in a medicine chestmediteromanian hotel backsprawled across a roll top deskthe monkey rode the blade on anoverhead fanthey paint the donkey blue if you payI got a telephone call from Istanbulmy baby’s coming home todaywill you sell me one of those if I shave my headget me out of town is what fireball saidnever trust a man in a blue trench coatnever drive a car when you’re deadSaturday’s a festivalFriday’s a gemdye your hair yellowand raise your hemfollow me to beulah’s ondry creek roadI got to wear the hat that my baby done sewedtake me down to buy a tuxon red rose beargot to cut a hole in the dayI got a telephone call from Istanbulmy baby’s coming home today ..ps.the key issues seem to be…in a fiat fractional reserve systemwho is entitled to the interest?the government, public, or the investor,market maker or bankers? who pays for theUTILITY of a money system?.are there any standards applicable in the knownuniverse that apply to the guarantees extendedto credit creation / debt / money? or is thisjust a power one acquires by buying politiciansand media lizards?.risk. risk. risk.as one aspect exploits their leverage in this domainthereby extracting value from another they simultaneouslyforce the other party in the domain toward a limit, alimit where the other party approaches that calculationthat goes like this. …i have nothing to lose. my greatest risk is in doingnothing or listening and abiding by the narrative of thestatus quo. so actually, that which i thought was riskyis not, it is necessary. the shadow stuff of the collective unconscious perhaps..these feedbacks and repercussions, swans?, are why truth andscience are useful. but, we are not there yet..we are passing thru the phase where we recognize thateconomics is politics. we will see that politics isbased on something else also..ppss..great interview, imho.pppssss.”she loves me”. hilarious.