Tuesday, September 08, 2015

I'm watching the great move `inside job', about the US financial crisis.
Well by 50th minute it's a bit repetitive so not sure about the great part.
So many Jewish names in the movie. Is it anti-semitic? Or is this just what you get by an unbiased sample of leading figures in the financial industry?

There's an interesting analogy between finance and mathematics about
the value of abstraction.

We know that money is an abstract thing, that is made
very real by the collective human mind.
But it turns out the rapid growth of financial industries,
is by making even more abstract things real.

For example - derivatives.

Rather than the value of a currency\company -
the change over time of a currency\company.

This becomes a real thing you can buy on the stock market.

Maybe the more abstract a thing you can make the general public think
of as a real, tangible thing - the more you can leverage and control.
Because there's a bigger gap between what people perceive as how the thing
is and works, to what it actually is.
This gap, already exists when thinking of a bunch of atoms, as cells,
and than of a bunch of cells as a human.

But how much larger is this gap when looking at something like a financial derivative.

`They found - the part of the brain stimulated when these men make money,
is the same part that Cocaine stimulates'

The investment companies would, at the same time,
sell their clients mortgage packages, buy `insurance' derivatives that would go up if these packages
lost their value, and buy insurance in case the company selling the insurance derivatives - AIG - would go bankrupt

It seems everything is part of the system - you see a congress board questioning the bankers,
accusing them on TV `You knew you were selling your clients crap!' , and you see the CEO of a big company like Goldman Sachs mumbling an answer like an embarrassed child being scolded - and that makes you feel `OK, it is being taken care of. The power is indeed with the people' so I can continue just living my life and not worry about it.

They say people's interests as they grow from infants to teenagers to adults to being old
are peeing-> food -> sex -> money -> peeing.


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Hi! I am a computer science postdoc. For some reason google is not finding my new homepage so I added a link from this profile