(they are so owned)
Sunday, March 29, 2009
Saturday, March 14, 2009
The Stupidity of The Masses (Take III)
It's really amusing to see how the world of some Facebokians has been shattered--to put it midly--by the new changes to Facebook's interface. I understand that as an addicition, you would want to get your fix quickly. But the amount of status updates that I have read about people begging for help with the new, confusing interface is really scary.
The hilarious thing is that some of the folks who put those status updates are doctors, engineers and businessmen. So I couldn't help but wonder how is it that some of those folks save lives for a living or deal with the uncertainties of the economic meltdown on daily basis, yet they were thrown off balance by the fact that now when FriendA writes on FriendB's wall it will appear in your news feed as: Friend A> Friend B: Message, instead of: Friend A has written on Friend B's wall.
The other entertaining thing is the whining. Few months back when Facebook's interface was changed, people revolted and established groups to fight the horrendous new interface--and of course nothing happened and the interface was not changed back. Now, the same thing is happening all over again! Don't the folks who join those groups feel a tiny bit stupid? I can understand users revolting to things such as privacy and terms (as was the case few weeks back), but to revolt about how your homepage looks now, really? That's the other thing, imagine if we can do this at work. If your boss changes anything as slight as where you sit in the office, you start bitching about it and print banners and put it above your desk. Wouldn't it be fun to work at a company where you can do this?
Note: for more ripping on the idiocy of Facebokians, please read this and that.
The hilarious thing is that some of the folks who put those status updates are doctors, engineers and businessmen. So I couldn't help but wonder how is it that some of those folks save lives for a living or deal with the uncertainties of the economic meltdown on daily basis, yet they were thrown off balance by the fact that now when FriendA writes on FriendB's wall it will appear in your news feed as: Friend A> Friend B: Message, instead of: Friend A has written on Friend B's wall.
The other entertaining thing is the whining. Few months back when Facebook's interface was changed, people revolted and established groups to fight the horrendous new interface--and of course nothing happened and the interface was not changed back. Now, the same thing is happening all over again! Don't the folks who join those groups feel a tiny bit stupid? I can understand users revolting to things such as privacy and terms (as was the case few weeks back), but to revolt about how your homepage looks now, really? That's the other thing, imagine if we can do this at work. If your boss changes anything as slight as where you sit in the office, you start bitching about it and print banners and put it above your desk. Wouldn't it be fun to work at a company where you can do this?
Note: for more ripping on the idiocy of Facebokians, please read this and that.
Monday, March 02, 2009
Conspiracy Theory #9
I've been captivated by the whole global economic meltdown for a multitude of reasons. First, because I am an avid news watcher and for the last year it's been the second most covered story--the first most covered story being the second coming of the Messiah. Second, because the economic meltdown has rendered the Frozen Wastelandees Zloty (FWZ, or more commonly known as PLN) virtually useless. In case you were wondering, 1 FWZ went down from 50 Dollar cents to almost 25 cents in a span of 6 months. So, yeah, it's cheaper to burn heaps of FWZ than pay for heating.
Back to the to economic meltdown, last April I wrote this piece about how it seems that there are no winners in this economic meltdown. Today, I had a eureka-moment. I am no economist, but follow me on this one. With this economic meltdown, all governments are "bailing out" their banks and companies. Initially, I understood a bail out as throwing free cash at a bank or a company, in order to save the economy from total collapse. Turns out, this is not the case. For example, when a bank is bailed out, what the government is doing is basically giving the bank cash in exchange for stocks (i.e. ownership) of the bank. That's why there's all this buzz about socialism and nationalisation and all that. So the government passes tax payers' money to a bank, in exchange for the bank's stocks. Mind you that this transaction is happening at a time when the stock of any bank or corporation is trading way below its average because of the economic meltdown.
Let's take a recent example here, the Royal Bank of Scotland (RBS) reported the biggest loss in British corporate history and right away the UK government announced plans to back it up. I am not aware of the exact details, but I assume the deal will include the UK government pumping cash into RBS to enable it to continue lending in exchange for shares. Now, as you can see from the chart below, RBS's share is now trading at 23p. Just 6 months ago the share price was around 700p. So assuming the government ends up getting an extra 20% stake in RBS and in two years time we're out of this economic meltdown and the share is back to, say, 500p, that would be a pretty sweet deal for the government, right? It's the same concept that investors use when they buy stocks when the market is down to profit when the market bounces back.
What's really deliciously evil here is that given proper planning and the abundance of Machiavellianism, governments can engineer an economic meltdown. I can see it now, the G8 leaders bathing in a pool of undervalued corporate stocks in a secluded castle in Bavaria. Well played.
Back to the to economic meltdown, last April I wrote this piece about how it seems that there are no winners in this economic meltdown. Today, I had a eureka-moment. I am no economist, but follow me on this one. With this economic meltdown, all governments are "bailing out" their banks and companies. Initially, I understood a bail out as throwing free cash at a bank or a company, in order to save the economy from total collapse. Turns out, this is not the case. For example, when a bank is bailed out, what the government is doing is basically giving the bank cash in exchange for stocks (i.e. ownership) of the bank. That's why there's all this buzz about socialism and nationalisation and all that. So the government passes tax payers' money to a bank, in exchange for the bank's stocks. Mind you that this transaction is happening at a time when the stock of any bank or corporation is trading way below its average because of the economic meltdown.
Let's take a recent example here, the Royal Bank of Scotland (RBS) reported the biggest loss in British corporate history and right away the UK government announced plans to back it up. I am not aware of the exact details, but I assume the deal will include the UK government pumping cash into RBS to enable it to continue lending in exchange for shares. Now, as you can see from the chart below, RBS's share is now trading at 23p. Just 6 months ago the share price was around 700p. So assuming the government ends up getting an extra 20% stake in RBS and in two years time we're out of this economic meltdown and the share is back to, say, 500p, that would be a pretty sweet deal for the government, right? It's the same concept that investors use when they buy stocks when the market is down to profit when the market bounces back.
What's really deliciously evil here is that given proper planning and the abundance of Machiavellianism, governments can engineer an economic meltdown. I can see it now, the G8 leaders bathing in a pool of undervalued corporate stocks in a secluded castle in Bavaria. Well played.
Subscribe to:
Posts (Atom)