How is it that true believers in the inivisible hand of markets seem to absolve reality when it comes to applying the same prinicples to the macro level? If individual prices rise and drop on a random walk (including binary drops from something to nothing) well so can markets as a whole at all levels of scale: municipal, industrial, national and global… we are human after all and not dancer. We can leave it to the HFT algos to pull off an impressive jig or a vigorous two-step on demand.
Unlike previous regime threatening collapses of Centuries past, however, we should have known better this time…of course “we” means the ones who piloted this sucker through the past 50 years on the political and economic level… as revealed in many places on ZH (forgive my laziness in not fetching the links) this involves a surprisingly tightly knit group of extremely wealthy and powerful people. Ah but then one has to wonder… I don’t doubt for a second that any of us in a similar position as the Illuminated Bildebergean Squidlets would have done much different.. Selling one’s soul to the Devil pays astonishing dividends it would seem…
The small people need to fight back and build better defenses. We need to instill in our young better values. We need to respect our environment and start valuing ideas and processes that add human value to communities as opposed to material value. Status seeking and the Cult of Beauty need to be either vilified or at least put back in their place (ok for adults but not for tweens) A serious rethink is needed about what it means to be human in an age of social networking and unmonetizable cultural artifacts.
A great danger if intellectual property continues to be debased as a marketable product is that the powers that be will see to it that it becomes so…I can only see that leading to the end of a “free” internet. The fact that the film and music industry are losing purchase in the world economy is not helping in this depression… We don’t hear much about the value of cultural exports…it’s all commodities all of the time. We’ve gone from the New Economy of the late 90s back to the Old Economy of the 19th Century where we depend on the movement of raw materials more than anything else to keep us afloat. Entertainment, once considered recession proof may have finally met its match.. The Internet will be the logical next “place” for a clampdown by corporations who can no longer afford to keep it operating on a more or less free basis. As absolute advertising revenue declines it will become clear to TPTB that THE INTERNET is the source of all our economic woes for it has destroyed business models and not replaced them with something BETTER. In fact everything the Internet touches becomes decimated and the revenue model falls apart. Even PORN is not immune. I couldn’t believe my eyes when I recently saw an AD on t.v. imploring pornofiles not to illegally download porn titles for it diminishes American porn shops’ ability to produce their vitaly important product. Stimulus indeed.
And what is adverstising anyways but the ponzi that PONZI built? Without the influx of ponzi cash the ad ponzi is melting down before our very eyes. Why spend on advertising if it doesn’t work anymore? The small people don’t buy it. The shiny happy people in their silver S.U.V.s happily off roading in the forest, the beautiful couples fawing over their adorable daughter as she graduates from an Ivy league school thanks to their shrewd mutual fund investments. Who buys that crap? Who buys the $1 million ads that play on CNN and CNBC promoting Coporation X’s commitment to America and to “innovation”? And right through the worst of the credit crunch the ads continued. I guess if you paid for ’em you might as well air them right?
The single biggest mistake by the banksters was their incontrovertible innability to resist getting back to the bonus binge… THAT is what has done them in. Nothing else really. The layoffs, the pay cuts..we’ve seen all that before..but the BONUS culture? We didn’t really know the extent of it. And then of course BP exploding that oil volcano at the bottom of the Gulf couldn’t have happened at a worse time and again the large corporations cannot but have contempt for the “small” people.
As the advertising world collapses, as it most certainly will if things continue on their persistently dowward trajectory, then it won’t be long before blogs are finally silenced. You know, it’s expensive letting people say what’s one their mind. The cost of going online will simply be too much for the small people so anyone not in the loop or without serious bux will be silenced. The New and Improved World Order will be upon us in earnest and The Eye of Sauron (0% interest rates), unshackled from the trivial musings of non-PhD blogheads, will be free to spread it’s darkness over the land, eating up resources across the Globe, converting them into consumer products for Asia and India to feed on as we choke on the refuse of their newly found Ilth.
If we don’t get sent back to the dark ages then the best that I can muster is that the whole world will be cyberpunk… a mixture of extreme poverty and wealth living side by side but kept apart by walls of technology. There will be insane pollution, mounting health crises, increasing violence…and yet everyone will have a Volkstelefon, that is to say some Jobsian communication device for the masses, as it will be the one and only piece of technology with everything on board to keep you alive: from state issued i.d. to digital credits that you’ve earned through a series of humiliating acts augmented by whatever dusting of gold you can get your hands on.
The future is so deadly, I have to wear shades..lest you see a grown man cry.