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Friday's Big Easy : Endless Recycling

When a company gets into trouble, you usually have some kind of consultant showing up with the following advice : "After having thoroughly screened the company, we think the major problem is that you try to do too much and hence are not capable of producing top line products and serving your customer properly. Restrict yourself to what you can do best, even if it means making only 1 product. Reorganize (polite word for lay offs)". Five years later when in trouble again, the same consultant shows up and now the analysis seems to point that you have become too dependent on 1 specif product and/or 1 specific client. Specialization can be a dangerous tactic to follow. Better is to diversify your product and customer range so you change and 5 years later etcetera etcetera etcetera. Likewise, we now cut the cost of hiring young unemployed in order to tackle youth unemployment, creating substitution problems somewhere else of course. And in 5 years time we do it for the elder long term unemployed etcetera etcetera etcetera.
Recycling is of all times, only rarely we see solutions showing up which are revolutionary or completely out of the box. Also this time - in times of economic crisis - the debate is usually focused on 2 mainstream schools which have been fighting a battle ever since 1930. Could it be that there is somewhere another solution, may be a kind of go between or something completely new, or do we have to recycle these theories and/or give them a fundamental face-lift ? Or may be the interaction of human beings on a macro economic scale is too complicated to grasp in 1 big comprehensive theory. To that extend, economics is for instance different and more humble in both its approach and aspirations than other human sciences such as for example sociology : nomos (laws of human nature) versus logos (universal laws of devine nature). So basically, our circle of professional economists have to admit that from time to time we are selling BS, but at least we don't pretend it's from a devine nature.
Talking about recycling, Friday fun goes easy and likes to focus on 3 singer song writers, your musical holiday treat for the year. First of all Luka Bloom, a straight from the heart Irish folk singer with a delicate great guitar touch. He turns into "rap" because he doesn't want be labeled or being put in a specific box/corner. Somehow however he manages to produce Blackbush Whiskey quality, all the way into the grand finale. So welcome in Luka's living room searching for love and recognition, there's nothing wrong about that. And if you can find the time, check this link which involves the ultimate form of love and Pablo Picasso.
http://www.youtube.com/watch?v=5H3QZCUn9LY
Our second contestant is Justin Currie (Delamitri). This is basically an ode to existentialism, endless repetition, with some very catchy cynical one liners http://www.lyricsfreak.com/d/del+amitri/nothing+ever+happens_20039191.html Basically :
Nothing ever happens, nothing happens at all, the needle returns to the start of the song and we all sing along like before. Nothing ever happens, nothing happens at all, they'll burn down the synagogues at six o'clock and we'll all go along like before
For our third and last contestant, recycling always comes in handy, be it with the band Crazy Horse and greasy guitars, Pearl Jam or in this case a true sober gem. And the solo unplugged version of "Stringman" has the extra. Let Grandpa Neil Young take care of the rest, with very wise lyrics by the way.
http://www.azlyrics.com/lyrics/neilyoung/stringman.html
You can say the soul is gone, and close another door, just be sure that yours is not the one
And I am singing for the stringman, who lately lost his wife, there is no dearer friend of mind, that I know in this life
On his shoulder rests a violin, for his head where chaos reigns, but his heart can't find a simple way to live with all these things
Nevertheless cheer up, cheers and have a nice weekend
29 Comments
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Nacht Und Nebel
On 20 Jul, 2012
The world is a dangerous place, not because of those who do evil, but because of those who look on and do nothing (1st1)
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christof Govaerts
On 20 Jul, 2012
@NuN
Aha, nice one, touché ; I might be a cynic from time to time but I have an excuse : the way Mr Market has been behaving over the past couple of years doesn't make you cheerful. I have existential tendancies but more in the positive direction of Albert Camus (revolt for freedom against absurdistan) and Soren Kierkegaard. As for the quote of today, Bloomberg dug up a nice one from Alexandre Dumas : "All generalizations are dangerous, even this one !"-
Nacht Und Nebel
On 20 Jul, 2012
Mencken said that cynic is a man that smells flowers and looks around for a coffin.That's not you.I think that even in your coffin you would be still looking around trying to smell the flowers :)
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christof Govaerts
On 20 Jul, 2012
If you want to know how my coffin looks like, check the following you tube link with that great seventies sound !!
http://www.youtube.com/watch?v=IM9Izi8T0OA -
Theo
On 20 Jul, 2012
This Friday I drink to cynics, ironic love and topless mountains
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Nacht Und Nebel
On 21 Jul, 2012
http://youtu.be/pJVlrhWaZhA
Now I am sober and there's only the hangover and the memory of love (Rumi)-
Nacht Und Nebel
On 21 Jul, 2012
The Nanny State has produced alot of old men with reading glasses who have an irresistible urge to look intelligent.Yet,they remain blind.
http://static3.tijd.be/i/01/8a/4b.170.jpeg?ts=1327473468000
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Christof
On 21 Jul, 2012
@all
Like Theo I had a drink last night but this morning's hangover struck with a vengeance. I found consolation though in allanis morissette : Ironic.
But i was really disappoint yesterday by the fact that a good contact of mine (a dutch option trader) had sent in a guest post about volatility and wrong option pricing (since libor and other risk free rates are mispriced, so are options). Unfortunately his employer forbids employees to publish under company name and personal name so I can't post. So we have to look for other inspiration to fill our Friday Pedrocchi cafe-
Nacht Und Nebel
On 21 Jul, 2012
Did you know that David Bowies real name is David Robert Jones?:)
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Theo
On 21 Jul, 2012
Am I still drunk... or is that a painting of a fiddler on the roof?
You can always publish your friend's guest post under "Fiddler on the Roof". You could turn it into a pseudo for any other such cases.
Talk about a risk free option... Ironic :-)
http://www.youtube.com/watch?v=gRdfX7ut8gw
I'm glad my mountain is topless
http://bg.wikipedia.org/wiki/%D0%A4%D0%B0%D0%B9%D0%BB:Todorka_peak_red.jpg-
Christof
On 21 Jul, 2012
@theo
No you are not drunk, it is indeed chagall's fidler on the roof, hence strringman. As for your suggestion, creative thinking, i will ask my contact because it's worthwile and not so difficult reading.-
Theo
On 21 Jul, 2012
@ Christof
I shall then continue drinking to cynics today. Why is there beer missing from the Google doodle by the way?
According to The Management Contradictionary (a real book) a cynic is someone who sees not only that the emperor has no clothes but also that there is in fact no emperor
Business cycle - neither caused by business nor a cycle. It is caused by government printing money without backing, and business being defrauded by it.
Bull market - environment in which shares are traded on the basis of bull received from companies
Bear market - environment in which shares are traded on the basis of share-traders not believing the bull received from companies
Model - a theoretical construct that is meant to represent a slice of reality. There is no model of reality as a whole. All the pieces add up to contradictory realities. The whole is not greater than the sum of its parts; it is just that the elements are not contextualised and the whole created from them doesn't look like any component part. The main beneficiaries of models are the model makers.
Consumer - an individual who, when aggregated into the general population mass, becomes responsible for buying everything-
Nacht Und Nebel
On 21 Jul, 2012
Theo,
Nice one,you earned this song about blind faith:) Hope you topless mountain doesn't incline too much :)
http://youtu.be/Qc4UopypcT8
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Christof
On 22 Jul, 2012
@theo
Market correction : the day after you bought stocks
Pe ratio : frequency of changing underwear when watching stock markets
Yahoo : what you shout as either a sales person sellingbthe stock @ 200 dollar or what an investor shouted when having bought the stock and jumped out of the window (cfr facebook)-
Theo
On 22 Jul, 2012
@ christof
too funny !
I'll try and come up with some too
@ NuN
I'm having nightmares of going over the edge :-)
Thank you for the songs. I love them all !
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Christof
On 22 Jul, 2012
@theo
Market correction : the day after you bought stocks
Pe ratio : frequency of changing underwear when watching stock markets
Yahoo : what you shout as either a sales person sellingbthe stock @ 200 dollar or what an investor shouted when having bought the stock and jumped out of the window (cfr facebook)
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incognito
On 21 Jul, 2012
"Also this time - in times of economic crisis - the debate is usually focused on 2 mainstream schools which have been fighting a battle ever since 1930. Could it be that there is somewhere another solution, may be a kind of go between or something completely new, ... ?"
Exactly: the austerity school (Hoover, Germany, Geert Noels, van overt veldt, ...) vs the keynesian school (Roosevelt, Hollande's France, de grauwe, krugman, ...). They're both right and wrong (as usual in such chronic discussions). Yes, the system has to be 'healed' (much higher interest rates, lower debt AND much lower income inequality) but yes, we also need massive government investment programmes and lower taxes (otherwise, the 'healing' process will become extremely painful and even politically dangerous).
Can these seemingly contradictive goals both be achieved? Yes (imo), on condition that we leave the (credit) box. Decouple for a number of years, money from credit (central banks buy f.i. government debt and subsequently return the bonds to the government) , and we have all the money we need, without generating even more (government) debt. No, this won't lead to hyperinflation and a loss of trust in fiat money, on condition that the authorities remain cautious and explain what they're doing (temporary life support for the credit economy while it 'heals'). There is more than enough supply (capacity). The problem is that there is not enough aggregate demand.-
Christof
On 21 Jul, 2012
@incognito
Not bad, not bad. Fancy forming a government with some revolutionary rebels like me ?-
incognito
On 21 Jul, 2012
sure:), but all kidding aside, I'm afraid that you hit the nail on the head: this would require a (political) revolution, a putch
as I see it, we are shooting ourselves in the foot with a bazooka, continuously... it's sheer madness (but then again human folly - on a micro- and macro scale - is a file rouge in history, confer democritus, the laughing philosophyer, Horace's satires or Erasmus's 'lof der zotheid' or series as married with children and the simpsons for that matter: they laugh at human folly, although it is of course not always a laughing matter)
http://www.guardian.co.uk/business/2012/jul/20/spain-crisis-eurozone-valencia
http://www.mauldineconomics.com/frontlinethoughts/the-beginning-of-the-endgame1
I have written about the problems of Belgium before. Too few analysts pay attention to Belgium, but there are real problems in the country.-
Nacht Und Nebel
On 21 Jul, 2012
Now you are talking.Lower taxes,higher interest rates.
And why not put some adrenaline straight into the heart of the patient.
QE 0: Every family gets a interest free loan .
If you don't make me minister of eastern affairs at least make sure that they give me excile over there :)
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Christof
On 22 Jul, 2012
@incognito
I know about belgium, hence my blog earlier this week on the vienna yardstick : our budget can't even afford to refinance on the long end of the curve.
On valencia i know as well : whenthe money was there, they spent it on a calatrava designed cultural centre and modern art museum, multi billions and on a multi billion loss making F1 circuit. Now there is no money and the children have to take their paper, pencil and toilet paper to school. Progress i guess ?
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Nacht Und Nebel
On 21 Jul, 2012
Christof,
it is legally better if you steal your friend's idea:)-
Nacht Und Nebel
On 21 Jul, 2012
you do not be a minister to have the right to steal :)
http://youtu.be/x6cW779sBF8
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Nacht Und Nebel
On 22 Jul, 2012
Why not face the facts.Europe is no longer the bind walking with the lame but the dying walking with the zombies.Stagflation is here to stay and Laffer will be striking back with a vengeance.
http://youtu.be/_CYwNWHZuT0 -
Nacht Und Nebel
On 22 Jul, 2012
I wobder how the cost for Europe would be?The Tenfold??
http://www.zerohedge.com/news/cost-government-regulation-175-trillion-
Nacht Und Nebel
On 22 Jul, 2012
lol.I wonder how high....
http://www.zerohedge.com/contributed/2012-07-20/%E2%80%9Csouthern-europe-does-almost-nothing%E2%80%94except-complain%E2%80%9D
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