Re: An essay on economic basis of bourgeois risk and gambling culture - parasitism as derivatives, options, swaps, hedge funds etc.

[Marvin Gandall <marvgandall@xxxxxxxxxx>]

----- Original Message -----
From: "Sabri Oncu" <soncu@xxxxxxxxxxx>
To: <PEN-L@xxxxxxxxxxxxxxxx>
Sent: Thursday, March 11, 2004 9:42 PM
Subject: Re: [PEN-L] An essay on economic basis of bourgeois risk and
gambling culture - parasitism as derivatives, options, swaps, hedge funds
etc.


> Marvin Gandall:
>
> > Hungarian, but a good essay nonetheless. :)
>
> No! It is not a good essay.
>
> It is a wonderful demonstration of lack of
> understanding of derivatives, as the following
> statement of its author demonstrates:
>
> > the rate of profit on capital can be significantly
> > higher, and the risk much lower, than if you
> > invested in any tangible or productive asset -
> > derivatives allow many bigger capitalists to make
> > more money faster, with less bother and less risk.
>
> The above is true only if they have the reigns in
> their hands. Just as they can make more money faster,
> they can lose more money equally faster, if they don't
> have the reigns in their hands.
>
> So Buffet is right:
>
> > derivatives are "time bombs" and "financial
> > weapons of mass destruction"
>
> And this system, under the domination of strured
> finance and derivatives, is heading towards its
> "self-destruction", assuming that until that happens
> we can avoid an ecological collapse or a nuclear
> disaster.
>
> Watch Fannie-Mae in these days.
>
> Best,
>
> Sabri