The ruling elites all crowd into a very few elite universities. They also suck into their orb, any talented people who would endanger them, if left outside. We know from the Bush family example, total dunces can graduate from these schools which protect the spawn of the elites. But they are very much around in order to socialize and draw into themselves, the very brightest minds which then work on behalf of the rich dunces who are there mostly to socialize and have fun. Harvard is the top economics school and Yale, the top lawyer school. Graduates of both run our country and both have run our country into the ground. Time to examine them more.
Harvard University’s Faculty of Arts and Sciences, the teaching body for most undergraduate classes at Harvard College, will slice $220 million from its budget over the next two years because of endowment losses.
The faculty will form six working groups composed of teachers, staff and students to help determine which programs to trim because of the 19 percent cut, said Michael Smith, Dean of the Faculty of Arts and Sciences, in a talk with teachers and staff yesterday. The faculty, which also includes Harvard’s engineering, continuing education and graduate arts and sciences units, has a budget of about $1.15 billion.
Investment losses that are expected to slash the value of Harvard University’s endowment by 30 percent are demanding that cuts be made in the school’s academic programs, Smith said. The working groups will be charged with finding ways to make those reductions, he said.
You can bet, none of the classes of interest for the endowment babies will be tampered with. So they have to cut elsewhere. We can only imagine, what will be tossed out. Half of school courses are all about socialization. For example, ‘art’ classes are for flattering the youths and letting them do things that are pretty simple while telling them, rigorous learning of how to make real art, is stupid. One only has to feel something or have a notion and then, voila! It becomes art if they want it to be art.
I am very irritated with this. I didn’t take any art courses in my life and this is why I am such a miserable artist. Heh. Actually, artists usually starved. The amount of time producing real art is immense and thus, not profitable for the artist. Only the buying and selling of art is profitable. It is the same as with any manufacturing process: the worker gets the least profit. The financiers, the most.
Harvard is a closed shop. No one is allowed to participate if they haven’t first accepted ALL the premises and logic systems of the school. If someone makes so much as a peep about anything in the great, vast landscape of reality, that is against the Harvard world-view, they are locked out, forever. But people like Summers can say whatever pops into their dead brains because they are already Harvardians [I made up that word, of course].
Here is a very entertaining article that notices all of this and is justifiably horrified:
As you well know, I’ve been pointing out for almost three years that highly-trained financial predators have been lyin’, stealin’ and murderin’. NOW, after the damage is done, the school that trained these financial monsters is trying to figure out how to repair their “tarnished” reputation. That’s the theme of this commentary from Bloomberg’s 4/2/2009 article Harvard Begins Case Study as Tainted MBAs Reveal Damaged Brand
The professors will ponder how the school’s reputation has been tarnished, and may debate articles critical of the institution and its graduates who helped trigger the financial crisis, Healy said.Harvard’s alumni include Stanley O’Neal and John Thain, the former chief executive officers of Merrill Lynch & Co. who presided over the New York company’s decline; Rick Wagoner, the ousted CEO of General Motors Corp.; and Christopher Cox, former chairman of the U.S. Securities and Exchange Commission.
“I’m sure the brand is damaged, at some level,” Healy, a native of New Zealand, said in his office in Boston. “People that I know well tell me to my face, ‘You guys have some culpability,’ and I think that’s fair. It’s a good time for us to reflect and think about what the right things are for us to be doing.”
Apparently, these professors didn’t learn from another financial mess.
The last time the school [Harvard] overhauled its curriculum was in 2004, when it introduced a required ethics course after the 2001 Enron Corp. accounting fraud.
Since Harvard runs things now and since they are all of the same hive mind-set as each other, they will ONLY hire each other to ‘fix’ whatever it is, they are destroying. This will end only when Harvard ends. The ‘brand’ may be tainted but this doesn’t affect the hiring process at all. This is true of the Chicago School of Economics, too. They have their own niche. And so does Yale.
The top universities now have erased whatever ideological differences they once had and now are all in tandem and all are falling off of the same cliff the London School of Economics fell off of. I went to none of these schools. I never graduated from any of the schools I attended, not even high school. I went straight to the University system when only 16. But due to being a questioning sort of irritating person, didn’t do the socialization process correctly. This is why I got to learn in the school of Hard Knocks which is a tremendously wonderful teacher.
Unlike in the Ivory Tower system, you make a mistake, even a tiny one, you are HAMMERED hard by reality! OUCH! This is a great way for learning things. If there is little pain, there is little learning. This is due to evolution: organisms developed the ‘pain’ system so they could learn from experience. The brain remembers pain a lot better than pleasure. Pleasures are fleeting, pain is forever.
I figured that out about at the age of 5. Most people go to school to avoid pain. Schools, anxious to get students to morph with them, will avoid pain deals, too. So they are pampered, not hardened. Students who INSIST on the pain route are usually kicked out. Pick the wrong side in a fight, and the school will eliminate the student. Others, watching this, anxious to please teachers, will chastise the wayward students and mock them. Only steel will can stand up to this….HAHAHA.
So, the nonentities graduate and are like lemmings or bacterium, they go out and multiply. Harvard has not done a good job of teaching economics courses because they imagine, it is all about numbers and tweeking things a tad and playing magic tricks, the ultimate courses in economics which is a combination of history and religion, are studiously ignored.
If, for example, they had me teach there, I would explain in depth, how religion and economics are one and the same. And the stories from the dimmest past are guides to how our brains work and how we end up in trouble when we ignore ancient warnings about wealth and death. I would teach this course with some amount of pain. Students will have to figure out how violently dangerous it is, exploiting systems to suck down wealth, really is. Maybe, use a gun or a whip in the classroom! Heh.
Ben Bernanke became Federal Reserve chairman intent on making the central bank less personality-driven than it was under Alan Greenspan and Paul Volcker. But as he confronts an economic crisis that has pushed the Fed to shatter precedent and lend trillions of dollars, Mr. Bernanke is waging a public-relations offensive that casts him in the starring role.
This was his arrogant plan from day one. This complete idiot really does believe that if we just flood markets with ‘money’, there will be no depressions. Alas, this might be true [it is obviously not true] but he is arrogant when he refuses to believe that this will not create hyperinflation or protect the arrant traders and bankers, thus, allowing them to rage onwards with no risks or punishments. The latest example came Tuesday at Atlanta’s Morehouse College, where Mr. Bernanke delivered what amounted to an Economics 101 lecture on the crisis. On a day when the government said U.S. retail sales had fallen a worse-than-expected 1.1% in March, Mr. Bernanke told students he’s “fundamentally optimistic” about the economy’s prospects. After his speech, he sat with undergraduates at a table and took questions with television cameras rolling….
During the entire Great Depression, prosperity was always around the corner and we were always in the money. This proved a delusion.
The public-relations campaign comes with Mr. Bernanke’s own future in question. President Barack Obama must decide later this year whether to reappoint the Fed chairman. Mr. Bernanke’s term ends Jan. 31, 2010, and White House economic adviser Lawrence Summers is widely seen as a contender for the post.…
OK: if that happens, good gods! Talk about insanity. I was 100% against Bernanke when he was put into power. I am 200% against Summers. That guy should be arrested. He is Mr. Inflation to Infinity.
Mr. Volcker’s cigar-chomping performances on Capitol Hill were seen as a metaphor for the smokescreens he threw up to questions about interest rates. Mr. Greenspan, who took over from Mr. Volcker in 1987, did one on-the-record TV interview shortly before that year’s stock-market crash and never did another as chairman. He almost never took questions after speeches. He delighted in his ability to obfuscate. “I spend a substantial amount of my time endeavoring to fend off questions and worry terribly that I might end up being too clear,” he joked to a room full of economists more than a decade ago.
All magicians work in the dark. Since the Fed Chief is the top magician, the major producer of funny fiat money, he must not let the gnomes know his nefarious plans or they will run ahead of him in to the Cave of Wealth and Death and rush up to the Goddess of Infinity, screaming, ‘The Fed is going to squeeze us!’ or, ‘Whoopee, we will have fun! The Fed is making loans super-cheap again!’
Only now, they don’t bother with the Fed anymore except for bailing them out. Instead, they look for a carry trade situation. With all the major central banks imitating Japan’s ZIRP system, they go to the countries going into default and being forced, thanks to the US fiat dollar exchange, into higher and higher interest rate markets.
As the collapse in money value vis a vis the euro, yen and dollar savages all other nations, the need to offer higher and higher rates of return has opened them all up as conduits of hedge fund borrowing via the carry trade system. I stand nearly alone in saying, the carry trade is killing us. It is pure poison.
Mr. Bernanke, a Princeton university economist who joined the government in 2002 as a Federal Reserve governor, was among the academics and economists who argued that markets operate more smoothly if participants understand central bankers’ rules and processes. He advocated setting inflation targets to make the Fed’s goals clear to all. He felt the Fed had become too driven by its chiefs’ outsized personas. He was co-author of papers on the need for the central bank to depersonalize and explain itself.
Princeton is in New Jersey. It is the superior brother to Rutgers which was always a grittier college. Princeton, Yale and Harvard all have vied with each other since the founding of the United States, seeking influence and dominance. I happen to agree with Bernanke about openness and understanding. I immensely disagree with him on what these lessons should be about.
For example, anyone talking about the United States as a whole and about any economic matters, MUST focus a tremendous amount on two things: US trade deficits and government overspending. These are the twin rocks upon which we are floundering. If we don’t get a grip on both, at the same time, we are doomed. Bernanke doesn’t believe this.
Of course, Bernake’s open door policy barely opens the Fed’s very secretive vault for examination. Do we see him publishing the names of the humans and their institutions that are the ones who own the Federal Reserve? Perish the thought! No way in hell, will he do this. This is faux openness which is also part of a faux honesty that doesn’t talk about magic piggy banks or conjuring money out of thin air, or much of anything really useful to know.
The owners of the Fed are always at war with the outsider financial houses like Goldman Sachs. Goldman Sachs took over our government so they could eventually be the ONLY ones who get to run the Fed! It is pretty simple. Summers is part of that plan, of course. The game whereby the Fed runs our government continues and worsens. As the Fed destroys our basic economy, they eat up more power. And thanks to Harvard, Yale, Princeton and University of Chicago, they are teaching armies of future power rangers to accept the world view which is the one the top bankers owning the Federal Reserve and the Bank of England want us to have.
This is why economic news and teaching is so uniformly dismal. Anyone who is outside all this system are locked out for good. They will see no advancement unless they first accept the universe according to the owners of the central banks of the US/UK imperium.
“Anyone who is doing anything sensible right now is either losing money or is out of the market entirely.” These are the words of a quant trader, who is seeing something scary in the capital markets. Scary enough to merit a warning that we could be on the verge of another October 87, August 2007, or January 2008.
Let’s back up. I recently posted a chart which tracks equity market neutral strategies: in essence a cross section of quant funds for which there is public performance tracking. The chart is presented below….
In order to maintain market efficiency, the ecosystem has to be balanced: liquidity disruptions at any one level could and will lead to unexpected market aberrations, such as exorbitant bid/ask margins, inability to unwind large block positions, and last but not least, explosive volatility: in essence a recreation of the market conditions approximating the days of August 2007, the days post the Lehman collapse, the first November market low, the irrational exuberance of the post New Year rally, and the 666 market lows.
There are a lot of people out there issuing scare warnings. But I keep saying, the entire business of the central bankers and their minions is for one thing only: to restore the goofy status quo we have had for the last 50 years. Even more, to regain the status quo of the last 15 years: the carry trade business.
This business allows the non-central bank investment houses to resume lending and borrowing with impunity, flooding the planet with debts. So long as ANY major industrial power has ZIRP, this will happen. The carry trade has returned! This is the ONLY reason the stocks of the major Derivatives Beast houses are seeing a flood of new ‘profits’. They restarted the old machine that destroyed our planetary finances.
Because many trillions of dollars vanished during the last cessation of the carry trade systems starting in July, 2007, there is now room to play leverage games again. And they will play these games like crazy. This is the third wave of crazy carry trade game playing.
Why is this? Simple, again! The nations that run huge trade surpluses with the US are very anxious to allow the US to run up even more debts. They must find some way of pumping these leveraged loans back into the US so we will buy more Chinese trade goods, more Japanese Toyotas. I was nearly alone in noting that the G7 and G20 meetings mostly agreed on mainly one thing: to get the carry trade moving again and to reinflate all systems. Period. All the blather of controlling hedge funds and stopping the financial pirates was pure tripe.
More Complicated Strategies
A “benchmarking” algorithm is used by traders attempting to mimic an index’s return. An algorithm designed to discover which markets are most volatile or unstable is called “Sniffer”.
Any type of algo trading which depends on the programming skills of other algo traders is called “gaming”. Dark pools are alternative electronic stock exchanges where trading takes place anonymously, with most orders hidden or “iceberged.” Gamers or “sharks” sniff out large orders by “pinging” small market orders to buy and sell. When several small orders are filled the sharks may have discovered the presence of a large iceberged order. They then front run the order.
“They look for big, dumb elephants leaving big footprints,” said Joe Saluzzi, head of equity trading at Themis Trading…. “If you’re getting tapped by odd lots, if it happens 40 times…you’re being gamed.” 
Any sort of pattern recognition or predictive model can be used to initiate algo trading. Neural networks and genetic programming or “Black-Box Algorithmic Trading” have been used to create these models. On the predictive side “Black-Box Algorithmic Trading” is considered a complete trading system to predict markets with entry and exit points. A Black-Box refers to a trading system that has a complex mathematical model, use algorithms for predictions and is not curve-fitted.
“Now it’s an arms race,” said Andrew Lo, director of the Massachusetts Institute of Technology’s Laboratory for Financial Engineering. “Everyone is building more sophisticated algorithms, and the more competition exists, the smaller the profits.”
It certainly is an arms race. We see in the news that the rescue of the US captain in the pirate hijackings off of Africa only made the pirates bolder and nastier. They took three more ships. Stopping piracy is very hard work. One must be vigilant and one has to impose imperial rule on pirate coves.
So why doesn’t the US navy go after all the Caribbean pirate islands? That is the real question. The Somali pirates don’t put money into the pockets of Harvard business graduates! That is the only difference between them.
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