For more than twenty years, I've said that I think the stock market is a big legalized gambling bit. I look at it like we give money to a certain person to bet for us, just like what is known as racketeering when it is not done by guys in ridiculously-priced suits in New York. Well, for the sake of clarity, some of them might also wear ridiculously-priced suits, but their business is conducted outside of office buildings. I have said, time and again, that I imagine these major "power brokers," on an island somewhere most of us have never heard of, sitting down to play poker with our hopes, dreams, retirement security, college funds, and the like. Our "mutual fund" or "401k" is converted to a silly plastic chip, likely specially made for the occasion: "Gazzillionaires Annual Gaming Fest" (a.k.a "G.A.G. Fest" Yes, sickening pun intended.). Then, the aged-whatever-kind of alcohol starts flowing, cigars start billowing smoke and our very lives are moved about the table like pawns. It's like the Greek Gods of old playing around with the lives of ordinary humans. However, at least the Greek Gods knew they were playing with human lives. After reading "The Quants," I realize that these gamblers do not even have as a blip on their radar the fact that the chips before them represent the blood, sweat, tears and lives of real human beings.
The most meaningful quote from the book for me is found on pages 134-135. To summarize, the author states that it is the math that is important, nothing else. Countries and companies are not examined for their societal good, nor their efficiency, even, per se. You see, you can always bet against them, buy some kind of "insurance" in their failure, so that you make money when governments or companies fail. That is kind of sick, if any kind of human face is put to it. While who "cares" about a failing company, it is the people who work there that matter. I don't care if all the car companies "fail" for example. I do care that their failure means that people will be out of work, unable to provide for their families and under stress like never before. Even in the great depression, people had fewer worries. I mean, they were not "required by law" to carry health insurance, for example. Their kids did not have to have Internet access in the house just to go to school. It isn't even just Internet access that is required, but also printer ink and paper. Toner, the last time we bought it, was just under $100!
In "The Quants," the author points out that our "math geniuses" are the people who created the mess in which we are still in the midst. Right now, I see oil the same way as it effects gas prices. They will push until it just implodes. There are math geniuses out there in New York and they are "betting" on how high gas prices can go before people "just say no." The deal is this: most people work for a living. And, since we don't have a public transportation system outside of major cities, the majority of Americans drive to work. With the loss of jobs, people drive further than ever before to work. At some point, that drive does not pay off any longer because the cost to get there is too great. The "quants" are pushing to see just what that "tipping point" is. It is a game to them. They don't drive to work anyway. No, they walk from pricey New York apartments or hop on a private jet or helicopter and because they have SO MUCH money, gobs of it, the cost of the fuel for the jet or helicopter is not a consideration.
I have always hated the stock market because I find it immoral. "The Quants" merely confirms everything I've ever thought. It puts facts behind my speculation. Read it, and let me know what you think.
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