Derivatives Trading Quotes

Here were the luxury and priviledge of the well-fed man scoffing at all hopes and progress for the rest. [He] owed nothing to a world that nurtured him kindly, liberally educated him for free, sent him to no wars, brought him to manhood without scary rituals or famine or fear of vengeful gods, embraced him with a handsome pension in his twenties and placed no limits on his freedom of expression. This was an easy nihilism that never doubted that all we had made was rotten, never thought to pose alternatives, never derived hope from friendship, love, free markets, industry, technology, trade, and all the arts and sciences.

Within a world of free trade and democracy there are no incentives for war and conquest. In such a world it is of no concern whether a nation’s sovereignty stretches over a larger or a smaller territory. Its citizens cannot derive any advantage from the annexation of a province. Its territorial problems can be treated without bias and passion; it is not painful to be fair to other people’s claims for self-determination.

the U.S., also has the highest rates of suicide, drug abuse, murder, incarcerations, and other negative social factors. Our economy is based on fighting wars—killing people and ravaging the planet—trading paper (mergers, derivatives, etc.), and selling each other things most of us don’t need. Meanwhile our planet is drowning in pollution, people are starving, our resources are dissipating, and our animals and plants are disappearing at shocking rates.

In one experiment, CA would show people on online panels pictures of simple bar graphs about uncontroversial things (e.g., the usage rates of mobile phones or sales of a car type) and the majority would be able to read the graph correctly. However, unbeknownst to the respondents, the data behind these graphs had actually been derived from politically controversial topics, such as income inequality, climate change, or deaths from gun violence. When the labels of the same graphs were later switched to their actual controversial topic, respondents who were made angry by identity threats were more likely to misread the relabeled graphs that they had previously understood. What CA observed was that when respondents were angry, their need for complete and rational explanations was also significantly reduced. In particular, anger put people in a frame of mind in which they were more indiscriminately punitive, particularly to out-groups. They would also underestimate the risk of negative outcomes. This led CA to discover that even if a hypothetical trade war with China or Mexico meant the loss of American jobs and profits, people primed with anger would tolerate that domestic economic damage if it meant they could use a trade war to punish immigrant groups and urban liberals.

The less transparent the market and the more complicated the securities, the more money the trading desks at big Wall Street firms can make from the argument. The constant argument over the value of the shares of some major publicly traded company has very little value, as both buyer and seller can see the fair price of the stock on the ticker, and the broker’s commission has been driven down by competition. The argument over the value of credit default swaps on subprime mortgage bonds—a complex security whose value was derived from that of another complex security—could be a gold mine.

But derivatives did create new dangers. If you were making a loan, and you were confident you could hedge some of the credit risk of that loan, you might be tempted to make a larger and riskier loan. And the instruments themselves often had leverage embedded in them, so investors could be exposed to greater losses than they realized. Firms weren’t required by law to post any collateral (or “margin”) to make derivatives trades, and the market wasn’t requiring them to post much, either. This meant fewer shock absorbers for the system if those trades went bad. That’s why Warren Buffett had called derivatives “financial weapons of mass destruction.

Although Manmohan Singh, the helmsman, got the credit, it was Rao who took the tough and aggressive decisions and provided the energy and political support. He was shrewd and knew how to deal with dissent. The manner in which he pushed through the industrial policy in the cabinet is an example. At the same time, the reforms would not have happened without Manmohan Singh. To the extent that there was one, he created the road map. In a brilliant move, he set up a set of committees—bank reform under Narsimhan, tax reform under Chelliah, and insurance reform under Malhotra—and they provided crucial intellectual sustenance and legitimacy for reform measures in these areas. It needed Manmohan Singh to come and change the nation’s mind-set to growth. But Manmohan Singh is a reticent man and cautious by nature. On his own, without Rao’s constant support, he would not have done it. The new trade policy would not have come about as speedily without Chidambaram. Varma was a terror as the head of the steering committee and he provided the momentum for the implementation of the reforms for two years. He knew the system well, and he played it in favor of the reforms. Varma’s crucial contributions, I believe, have not been understood or appreciated. In the end, all three—Manmohan Singh, Chidambaram, and Varma—derived their strength from Narasimha Rao.

For example, trading in S&P 500-linked futures totaled more than $60 trillion(!) in 2011, five times the S&P 500 Index total market capitalization of $12.5 trillion. We also have credit default swaps, which are essentially bets on whether a corporation can meet the interest payments on its bonds. These credit default swaps alone had a notional value of $33 trillion. Add to this total a slew of other derivatives, whose notional value as 2012 began totaled a cool $708 trillion. By contrast, for what it’s worth, the aggregate capitalization of the world’s stock and bond markets is about $150 trillion, less than one-fourth as much. Is this a great financial system . . . or what!

A good family farm produces more, in net terms, than the farm family consumes. The good farmer has secured enough land to grow crops and support his or her livestock. The extra production beyond the farm family’s own consumption can be sold and traded for other goods and services—TVs, clothes, books. Some countries are like good family farms, with more bio-capacity than what it takes, in net terms, to provide for their inhabitants. Compare this with a weekend hobby farm, with honeybees, a rabbit, and an apple tree, where most resources have to be bought from elsewhere. Presently 80% of the world population lives in countries that are like hobby farms. They consume more, in net terms, than what the ecosystems of their country can regenerate. The rest is imported or derives from unsustainable overuse of local fields and forests.

the long delay, and the obvious reluctance of the United States to ratify the Genocide Convention” derived from “fear that it might be held responsible, retrospectively, for the annihilation of Indians in the United States, or its role in the slave trade, or its contemporary support for tyrannical governments engaging in mass murder.” Still, Kuper said he was delighted that at last the Americans had agreed to the terms of the Convention.

they pale by comparison to the trading volumes of hedge funds, to say nothing of the levels of trading in exotic securities such as interest rate swaps, collateralized debt obligations, derivatives such as futures on commodities, stock indexes, stocks, and even bets on whether a given company will go into bankruptcy (credit default swaps). The aggregate nominal value of these instruments, as I noted in Chapter 1, now exceeds $700 trillion.

All wars arise from population pressure. (Yes, even the Crusades, though you have to dig into trade routes and birth rate and several other things to prove it. ) Morals—all correct moral rules—derive from the instinct to survive; moral behavior is survival behavior above the individual level—as in a father who dies to save his children. But since population pressure results from the process of surviving through others, then war, because it results from population pressure, derives from the same inherited instinct which produces all moral rules suitable for human beings.

One of the strangest controversies in the history of Orientalism turned upon the “origin of bhakti”, as if devotion had at some given moment been a new idea and thenceforth a fashionable one. It would have been simpler to observe that the word bhakti means primarily a given share, and therefore also the devotion or love that all liberality presupposes; and so that inasmuch as one “gives God his share” (bhagam), i.e. sacrifces, one is his bhakta. Thus in the hymn, “If thou givest me my share” amounts to saying “If thou lovest me”. It has often been pointed out that the Sacrifice was thought of as a commerce between Gods and men: but not often realised that by introducing into traditional conceptions of trade notions derived from our own internecine commercial transactions, we have falsified our understanding of the original sense of such a commerce, which was actually more of the potlatsh type, a competition in giving, than like our competitions in taking.

Markopolos first heard about Madoff in the late 1980s. The hedge fund he worked for had noticed Madoff’s spectacular returns, and they wanted Markopolos to copy Madoff’s strategy. Markopolos tried. But he couldn’t figure out what Madoff’s strategy was. Madoff claimed to be making his money based on heavy trading of a financial instrument known as a derivative. But there was simply no trace of Madoff in those markets. “I was trading huge amounts of derivatives every year, and so I had relationships with the largest investment banks that traded derivatives,” Markopolos remembers. So I called the people that I knew on the trading desks: “Are you trading with Madoff?” They all said no. Well, if you are trading derivatives, you pretty much have to go to the largest five banks to trade the size that he was trading. If the largest five banks don’t know your trades and are not seeing your business, then you have to be a Ponzi scheme. It’s that easy. It was not a hard case. All I had to do was pick up the phone, really.

Who is America named after? Not the Italian merchant and cartographer Amerigo Vespucci, but Richard Ameryk, a Welshman and wealthy Bristol merchant. Ameryk was the chief investor in the second transatlantic voyage of John Cabot—the English name of the Italian navigator Giovanni Caboto, whose voyages in 1497 and 1498 laid the groundwork for the later British claim to Canada. He moved to London from Genoa in 1484 and was authorized by King Henry VII to search for unknown lands to the west. On his little ship Matthew, Cabot reached Labrador in May 1497 and became the first recorded European to set foot on American soil, predating Vespucci by two years. Cabot mapped the North American coastline from Nova Scotia to Newfoundland. As the chief patron of the voyage, Richard Ameryk would have expected discoveries to be named after him. There is a record in the Bristol calendar for that year: “…on Saint John the Baptist’s day [June 24], the land of America was found by the merchants of Bristowe, in a ship of Bristowe called the Mathew,” which clearly suggests this is what happened. Although the original manuscript of this calendar has not survived, there are a number of references to it in other contemporary documents. This is the first use of the term America to refer to the new continent. The earliest surviving map to use the name is Martin Waldseemüller’s great map of the world of 1507, but it only applied to South America. In his notes Waldseemüller makes the assumption that the name is derived from a Latin version of Amerigo Vespucci’s first name, because Vespucci had discovered and mapped the South American coast from 1500 to 1502. This suggests he didn’t know for sure and was trying to account for a name he had seen on other maps, possibly Cabot’s. The only place where the name “America” was known and used was Bristol—not somewhere the France-based Waldseemüller was likely to visit. Significantly, he replaced “America” with “Terra Incognita” in his world map of 1513. Vespucci never reached North America. All the early maps and trade were British. Nor did he ever use the name of America for his discovery. There’s a good reason for this. New countries or continents were never named after a person’s first name, but always after the second (as in Tasmania, Van Diemen’s Land, or the Cook Islands). America would have become Vespucci Land (or Vespuccia) if the Italian explorer had consciously given his name to it.

The cinema today: end or impossibility of ending? Most current films, through the bloody drift of their content, the weakness of their plots and their technological trumpery – useless high-tech – reveal an extraordinary contempt on the part of film-makers for the tools of their own trade, for their own profession: a supreme contempt for the image itself, which is prostituted to any special effect whatsoever; and, consequently, contempt for the viewer, who is called upon to figure as impotent voyeur of this prostitution of images, of this promiscuity of all forms beneath the alibi of violence. There is in fact no real violence in this, nothing of a theatre of cruelty, but merely a second-level irony, the knowing wink of quotation, which no longer has anything to do with cinematic culture, but derives from the resentment that culture feels towards itself, that culture which precisely cannot manage to come to an end and is becoming infinitely debased - a debasement being raised to the power of an aesthetic and spiritual commodity, bitter and obsolescent, which we consume as a 'work of art' with the same complicity with which we savour the debasement of the political class. The sabotaging of the image by the image professionals is akin to the sabotaging of the political by the politicians themselves.

This kind of speculation reached a high point with the Pentagon's initiative of creating a 'futures market in events', a stock market of prices for terrorist attacks or catastrophes. You bet on the probable occurrence of such events against those who don't believe they'll happen. This speculative market is intended to operate like the market in soya or sugar. You might speculate on the number of AIDS victims in Africa or on the probability that the San Andreas Fault will give way (the Pentagon's initiative is said to derive from the fact that they credit the free market in speculation with better forecasting powers than the secret services). Of course it is merely a step from here to insider trading: betting on the event before you cause it is still the surest way (they say Bin Laden did this, speculating on TWA shares before 11 September). It's like taking out life insurance on your wife before you murder her. There's a great difference between the event that happens (happened) in historical time and the event that happens in the real time of information. To the pure management of flows and markets under the banner of planetary deregulation, there corresponds the 'global' event- or rather the globalized non-event: the French victory in the World Cup, the year 2000, the death of Diana, The Matrix, etc. Whether or not these events are manufactured, they are orchestrated by the silent epidemic of the information networks. Fake events.

Palo Mayombe is perhaps best known for its display of human skulls in iron cauldrons and accompanied by necromantic practices that contribute to its eerie reputation of being a cult of antinomian and hateful sorcerers. This murky reputation is from time to time reinforced by uninformed journalists and moviemakers who present Palo Mayombe in similar ways as Vodou has been presented through the glamour and horror of Hollywood. It is the age old fear of the unknown and of powers that threaten the established order that are spawned from the umbra of Palo Mayombe. The cult is marked by ambivalence replicating an intense spectre of tension between all possible contrasts, both spiritual and social. This is evident both in the history of Kongo inspired sorcery and practices as well as the tension between present day practitioners and the spiritual conclaves of the cult. Palo Mayombe can be seen either as a religion in its own right or a Kongo inspired cult. This distinction perhaps depends on the nature of ones munanso (temple) and rama (lineage). Personally, I see Palo Mayombe as a religious cult of Creole Sorcery developed in Cuba. The Kongolese heritage derives from several different and distinct regions in West Africa that over time saw a metamorphosis of land, cultures and religions giving Palo Mayombe a unique expression in its variety, but without losing its distinct nucleus. In the history of Palo Mayombe we find elite families of Kongolese aristocracy that contributed to shaping African history and myth, conflicts between the Kongolese and explorers, with the Trans-Atlantic slave trade being the blood red thread in its development. The name Palo Mayombe is a reference to the forest and nature of the Mayombe district in the upper parts of the deltas of the Kongo River, what used to be the Kingdom of Loango. For the European merchants, whether sent by the Church to convert the people or by a king greedy for land and natural resources, everything south of present day Nigeria to the beginning of the Kalahari was simply Kongo. This un-nuanced perception was caused by the linguistic similarities and of course the prejudice towards these ‘savages’ and their ‘primitive’ cultures. To write a book about Palo Mayombe is a delicate endeavor as such a presentation must be sensitive both to the social as well as the emotional memory inherited by the religion. I also consider it important to be true to the fundamental metaphysical principles of the faith if a truthful presentation of the nature of Palo Mayombe is to be given. The few attempts at presenting Palo Mayombe outside ethnographic and anthropological dissertations have not been very successful. They have been rather fragmented attempts demonstrating a lack of sensitivity not only towards the cult itself, but also its roots. Consequently a poor understanding of Palo Mayombe has been offered, often borrowing ideas and concepts from Santeria and Lucumi to explain what is a quite different spirituality. I am of the opinion that Palo Mayombe should not be explained on the basis of the theological principles of Santeria. Santeria is Yoruba inspired and not Kongo inspired and thus one will often risk imposing concepts on Palo Mayombe that distort a truthful understanding of the cult. To get down to the marrow; Santeria is a Christianized form of a Yoruba inspired faith – something that should make the great differences between Santeria and Palo Mayombe plain. Instead, Santeria is read into Palo Mayombe and the cult ends up being presented at best in a distorted form. I will accordingly refrain from this form of syncretism and rather present Palo Mayombe as a Kongo inspired cult of Creole Sorcery that is quite capable

Many models are constructed to account for regularly observed phenomena. By design, their direct implications are consistent with reality. But others are built up from first principles, using the profession’s preferred building blocks. They may be mathematically elegant and match up well with the prevailing modeling conventions of the day. However, this does not make them necessarily more useful, especially when their conclusions have a tenuous relationship with reality. Macroeconomists have been particularly prone to this problem. In recent decades they have put considerable effort into developing macro models that require sophisticated mathematical tools, populated by fully rational, infinitely lived individuals solving complicated dynamic optimization problems under uncertainty. These are models that are “microfounded,” in the profession’s parlance: The macro-level implications are derived from the behavior of individuals, rather than simply postulated. This is a good thing, in principle. For example, aggregate saving behavior derives from the optimization problem in which a representative consumer maximizes his consumption while adhering to a lifetime (intertemporal) budget constraint.† Keynesian models, by contrast, take a shortcut, assuming a fixed relationship between saving and national income. However, these models shed limited light on the classical questions of macroeconomics: Why are there economic booms and recessions? What generates unemployment? What roles can fiscal and monetary policy play in stabilizing the economy? In trying to render their models tractable, economists neglected many important aspects of the real world. In particular, they assumed away imperfections and frictions in markets for labor, capital, and goods. The ups and downs of the economy were ascribed to exogenous and vague “shocks” to technology and consumer preferences. The unemployed weren’t looking for jobs they couldn’t find; they represented a worker’s optimal trade-off between leisure and labor. Perhaps unsurprisingly, these models were poor forecasters of major macroeconomic variables such as inflation and growth.8 As long as the economy hummed along at a steady clip and unemployment was low, these shortcomings were not particularly evident. But their failures become more apparent and costly in the aftermath of the financial crisis of 2008–9. These newfangled models simply could not explain the magnitude and duration of the recession that followed. They needed, at the very least, to incorporate more realism about financial-market imperfections. Traditional Keynesian models, despite their lack of microfoundations, could explain how economies can get stuck with high unemployment and seemed more relevant than ever. Yet the advocates of the new models were reluctant to give up on them—not because these models did a better job of tracking reality, but because they were what models were supposed to look like. Their modeling strategy trumped the realism of conclusions. Economists’ attachment to particular modeling conventions—rational, forward-looking individuals, well-functioning markets, and so on—often leads them to overlook obvious conflicts with the world around them.

Beginning in the 1980s, electronic trading detached the buyer from the seller, complex derivatives insulated the investor from the company, CDOs sequestered the lender from the borrower—in other words, the decade constructed a system that allowed us to rip each other off without fear of having to look at the ramifications of our actions.

Much of the wealth Solomon derived from trade and taxes he poured into the royal capital. He built a sumptuous royal palace, with a great hypostyle hall on the lines of pharaoh’s palaces at Memphis, Luxor and elsewhere, its cedarwood roof supported by forty-five enormous wooden pillars, what the Bible calls ‘the house of the forest of Lebanon’. A separate palace was built for his chief wife, the Egyptian, since she kept her own pagan faith: ‘My wife shall not dwell in the house of David King of Israel, because the places are holy, whereunto the Ark of the Lord hath come.’184 Palace and royal quarter, barracks and inner fortifications were close to a new sacred quarter, or Temple, the whole being accommodated by extending the city of David 250 yards to the east.

Models for Measuring Risk Will Not Include All Positions and All Risks. The models used to measure VaR, volatility, or whatever else will never include all positions and all risks. Positions may be missed for a variety of reasons. Perhaps some legacy computer system does not feed the main risk system, or some new system may not yet be integrated. A new product may not yet have been modeled, or someone may simply neglect to book a trade in a timely manner. A good and robust risk system will have processes and procedures for checking that all positions are captured and reporting those that are not. Nonetheless, there is always some possibility that positions are missed. Likewise, the risk of positions that are included may not be properly represented. A complex derivative security may not be modeled correctly. Some product may have an unexpected sensitivity that is not captured by the risk system. Missing positions and missing risks mean that the risk measures reported will not perfectly represent the actual risk. In reality, nobody should be surprised that a reported risk number is not absolutely perfect.

And I’m not kidding when I say “craziness.” The University of St. Gallen, Switzerland, has come out with a study that compares traders with psychopaths. The study reviewed the results from an existing study comparing 24 psychopaths in German high-security hospitals with a control group of 27 “normal” people. The funny thing is, this control group of “normal” people turned out to be traders. Stock guys, currency and commodity traders, and derivative types happened to be the normal control group that was stacked up against the high-security, barbed-wire-enclosed psychopaths. In the end, the performance of the trading group was actually worse than that of the psychopaths. The study indicated that traders, “Have a penchant for immense destruction,” and that their mindset would lead them to the logical conclusion of “beating one of the neighbor’s expensive cars with a baseball bat with the sole objective of owning the most beautiful car in the neighborhood.” In other words, traders are nuts. Indeed if you look up the textbook definition of a psychopath, here are some of the tidbits you’ll uncover: antisocial behavior, poor judgment and failure to learn from experience, inability to see oneself as others do, inexplicable impulsiveness … sounds like a typical trader who is struggling against the market and can’t figure out why.

The warning signs had been there since the crash of 2008, but after the initial shock, nothing had been done to correct the problem. Banks had been trading over $7 trillion in risky derivatives daily, as well as fixing interest rates and making bets on the rigged games. There was an ever-growing gap between the elite and all the rest of the people which had continued to develop even after the 2008 crash.

An Introduction to CFD Trading Increase, commit, and individuals trying to trade systems and their cash in different areas are usually trying to find new strategies. Like several good buyer, you won’t be joining the group, instead you had want in order to change lives begin or to create one. Stocks trading is really 80s within the sensation that perhaps young kids today understand how it operates, and have the ability to survive without any formal education. If you should be looking for a new company shift, you should provide a try to this new venture. First what’s a CFD? CFD stands for contract for difference. It’s thought as a small business contract an entrepreneur and by an expense business. If the contract expires, both parties can trade notes concerning the differences between the original and final price indices of particular monetary things like shares of items and futures. This is exactly what CFD Trading is focused on. The one edge that traders have within this economic contract is the fact that they get to purchase these factors at lower costs despite the fact that it includes nonvoting stocks where the trader can’t vote on all aspects of the company as opposed to what stockholders are blessed to do. Another thing is the fact that a CFD does not hold taxes on files even if these aspects are acquired in large amounts. In simple terms, it’s a in which a derivative asset is founded on an underlying asset’s cost between two entities that transactions the differences. These parties will need to pay the differences required to eachother. The way in which CFD Trading works is that among the entities gives the difference before contract ends included to the other. Just about like what occurs in spreadbetting, the trader continues the opposite end-of the deal with investment institution or CFD service, where the trader anticipates which cost will increase and having three selections to take whether to buy, to slide or to sell the component required. Another similarity with spreadbetting is the fact that you can find no tax tasks since CFD’s don’t involve buying of assets to become settled. It just requires the activity of the fee. Since the investor is just needed to spot a minor amount on these things, that are also called edges, the earnings and in addition losses will soon be on the basis of the money set in. In other words, a CFD is good for the entrepreneur since it gives him the chance of owning main assets without so much problem. Does It Work A good example of that is to ingest a share worth $20 and the entrepreneur buys 100 of these. He will be cost $2,000 by this exchange. Employing a stockbroker will demand the entrepreneur to shell 50% of this amount out. That is $1,000. A meager initial cashout is needed which amounts as much as only $100, should you evaluate that to an expenditure finished with a CFD representative. However, allow it to be regarded that whenever an investor enters a deal of difference, the cost place usually begins in a loss. Which damage is definitely equal to the spread. Which means the spread is at $8 along with if you come into a deal, the underlying resource must generate $8 merely to break even. Let us say if the actual resource reaches a quote cost of $ 20, then the CFD price will be a few cents less than that since the dealer will have to escape at that point. So as opposed to increasing your money to $40, he will must settle for several dollars. Nevertheless not really a terrible package to get a purchase with less trouble.

In the purer ages of the commonwealth, the use of arms was reserved for … citizens who had a country to love, a property to defend, and some share in enacting those laws which it was in their interest, as well as duty, to maintain. But as the public freedom was lost in extent of conquest, war was gradually improved into an art, and degraded into a trade … That public virtue which among the ancients was denominated patriotism derived from a strong sense of interest in the preservation of free government … Such a sentiment … could make but a very feeble impression on the mercenary servants of a despotic prince. Edward Gibbon, The Decline and Fall of the Roman Empire

A man cannot be convinced against his own convictions, but he can be talked into a state of uncertainty and indecision, which is even worse, for that means that he cannot trade with confidence and comfort. I cannot say that I got all mixed up, exactly, but I lost my poise; or rather, I ceased to do my own thinking. I cannot give you in detail the various steps by which I reached the state of mind that was to prove so costly to me. I think it was his assurances of the accuracy of his figures, which were exclusively his, and the undependability of mine, which were not exclusively mine, but public property. He harped on the utter reliability, as proved time and again, of all his ten thousand correspondents throughout the South. In the end I came to read conditions as he himself read them because we were both reading from the same page of the same book, held by him before my eyes. He has a logical mind. Once I accepted his facts it was a cinch that my own conclusions, derived from his facts, would agree with his own. When he began his talks with me about the cotton situation I not only was bearish but I was short of the market. Gradually, as I began to accept his facts and figures, I began to fear I had been basing my previous position on misinformation. Of course I could not - 128 -

For my tomorrow is a concrete jungle in a number-driven world, and hers remains a ministry to a lush little village. Thus time will pass and letters will be sent, and letters will arrive and letters will be sent, and one day I'll be seated at a noisy Manhatten trading desk, oblivious to markets in motion and will wonder once again how God got me into a Presbyterian church, to a particular beach with a particular girl on a certain weekend in May, and gave me wacky new friends and a new fresh perspective, the living words and the eternal words and the words of a black man who give rhythm to the gospel, and once again it will occur to me that all this just cannot be happenstance...no, surely not happenstance, nothing Presbyterian is ever happenstance. But what you didn't tell me, Asbury, is how much of life derives simply from choice.

In order to translate your analysis into something more than mere commentary, you need to define what constitutes an opportunity for you. That’s what rules do; they implement your analysis. Rules are hard-and-fast. Tools (i.e., methods of analysis) have some flexibility in how they are used. Fools have neither rules nor tools. You must develop parameters that will define opportunities and determine how and when you will act. How? By doing homework (i.e., research, testing, trial and error) and defining the parameters with rules. Your homework determines what parameters or conditions define an opportunity, and your rules are the “if … then” statements that implement your analysis. This means entry and exit points are derived after you have done your analysis. If the opportunity-defining criteria aren’t met, you don’t act. This doesn’t mean a particular trade or investment that you pass up won’t turn out to be profitable. It might have been an acceptable and profitable trade based on someone else’s rules. Remember, participating in the markets is about making decisions, and as Drucker reminds us, “There is no perfect decision. One always has to pay a price which might mean passing up an opportunity.”6 You have to accept the fact that profitable situations will occur that you won’t participate in. Don’t worry about the ones you miss; they were someone else’s. Your rules will only enable you to participate in some of the millions of possible opportunities, not all of them.

Skin in the game can make boring things less boring. When you have skin in the game, dull things like checking the safety of the aircraft because you may be forced to be a passenger in it cease to be boring. If you are an investor in a company, doing ultra-boring things like reading the footnotes of a financial statement (where the real information is to be found) becomes, well, almost not boring. But there is an even more vital dimension. Many addicts who normally have a dull intellect and the mental nimbleness of a cauliflower—or a foreign policy expert—are capable of the most ingenious tricks to procure their drugs. When they undergo rehab, they are often told that should they spend half the mental energy trying to make money as they did procuring drugs, they are guaranteed to become millionaires. But, to no avail. Without the addiction, their miraculous powers go away. It was like a magical potion that gave remarkable powers to those seeking it, but not those drinking it. A confession. When I don’t have skin in the game, I am usually dumb. My knowledge of technical matters, such as risk and probability, did not initially come from books. It did not come from lofty philosophizing and scientific hunger. It did not even come from curiosity. It came from the thrills and hormonal flush one gets while taking risks in the markets. I never thought mathematics was something interesting to me until, when I was at Wharton, a friend told me about the financial options I described earlier (and their generalization, complex derivatives). I immediately decided to make a career in them. It was a combination of financial trading and complicated probability. The field was new and uncharted. I knew in my guts there were mistakes in the theories that used the conventional bell curve and ignored the impact of the tails (extreme events). I knew in my guts that academics had not the slightest clue about the risks. So, to find errors in the estimation of these probabilistic securities, I had to study probability, which mysteriously and instantly became fun, even gripping. When there was risk on the line, suddenly a second brain in me manifested itself, and the probabilities of intricate sequences became suddenly effortless to analyze and map. When there is fire, you will run faster than in any competition. When you ski downhill some movements become effortless. Then I became dumb again when there was no real action. Furthermore, as traders the mathematics we used fit our problem like a glove, unlike academics with a theory looking for some application—in some cases we had to invent models out of thin air and could not afford the wrong equations. Applying math to practical problems was another business altogether; it meant a deep understanding of the problem before writing the equations.

These were heady days at Morgan Stanley. No one seemed to care about how risky many of the hundreds of derivatives deals were. No one seemed to care about whether clients actually understood what they were buying, even when the trades had hidden risks. The group simply continued to pile trade on top of trade. Year by year, client by client, trade by trade, the venerable House of Morgan was building a precarious house of cards.

In early 1994 Mexico was hot. The U.S. had recently passed NAFTA—the North American Free Trade Agreement—and bankers were racing south to Mexico City. The Emerging Markets Traders Association said 1993 trading volume was $1.5 trillion, double the previous year, and Latin American derivatives were the fastest growing portion of the derivatives market. Monthly trading of Latin American derivatives had increased to a face value of $25 billion in 1993 from $3 billion in 1992.

In the upcoming months I would learn more about DPG’s history, but early on I learned about one derivatives trade that I think exemplifies the group’s business. This particular trade, and its acronym, were among the group’s most infamous early inventions, although it still is popular among certain investors. The trade is called PERLS. PERLS stands for Principal Exchange Rate Linked Security, so named because the trade’s principal repayment is linked to various foreign exchange rates, such as British pounds or German marks. PERLS look like bonds and smell like bonds. In fact, they are bonds—an extremely odd type of bond, however, because they behave like leveraged bets on foreign exchange rates. They are issued by reputable companies (DuPont, General Electric Credit) and U.S. government agencies (Fannie Mae, Sallie Mae), but instead of promising to repay the investor’s principal at maturity, the issuers promise to repay the principal amount multiplied by some formula linked to various foreign currencies. For example, if you paid $100 for a normal bond, you would expect to receive interest and to be repaid $100 at maturity, and in most cases you would be right. But if you paid $100 for PERLS and expected to receive $100 at maturity, in most cases you would be wrong. Very wrong. In fact, if you bought PERLS and expected to receive exactly your principal at maturity, you either did not understand what you were buying, or you were a fool. PERLS are a kind of bond called a structured note, which is simply a custom-designed bond. Structured notes are among the derivatives that have caused the most problems for buyers. If you own a structured note, instead of receiving a fixed coupon and principal, your coupon or principal—or both—may be adjusted by one or more complex formulas.

The shape of authority on the trading floor depends heavily on how much money a particular group is making. For the past several years, the most desirable jobs by far on Wall Street have been in derivatives groups, and those groups have usually ruled the floor. In general, if you aren’t in derivatives, the closer you are to government bond trading—the hub of the bond trading floor—the better. Surrounding the trading of government bonds, known as govvies, are the middle-tier jobs, including foreign exchange, mortgage trading, and corporate bonds. Less desirable jobs may not even be on the trading floor. Equity sales is bad. Private client sales may be worse. One of the worst jobs, for example, is selling money market instruments in Philadelphia, assuming the firm still has a Philadelphia office, which many do not. The worst jobs of all are in the municipal bond department. “Munis” are bonds, usually tax-exempt, that municipalities, states, or other local governmental entities issue to pay for roads, education, sewers, and so forth. Munis can be found in the backwaters of the trading floor and the wasteland of investment banking. Before I took the training examination at First Boston and was told, “You’d better do well on the exam…or else,” I knew very well what the “or else” meant: “or else you’ll end up in munis.

And so it was that politicians used to quibbling over a few million euros to be spent on pensioners, health or education gave their governments carte blanche to transfer hundreds of billions to bankers hitherto awash with liquidity. “Solidarity with bankers” helped Germany’s and France’s banks survive the collapse of their foolish derivative trades. However, another calamity beckoned: the remaining loans that bankers, like Franz, had granted to the deficit regions of the eurozone were sizeable enough to bankrupt those nations if stressed Irish, Spanish, Greek banks were to default. Before the ink of their own bailout agreements had dried, a second bank bailout was in progress: a bailout for the bankers of deficit countries whose governments could not afford to rescue them.

By 1994 sales and trading was driving most of the firm’s revenues, and its engine was fueled by derivatives. Although my new group, known as DPG—for Derivative Products Group—employed only a few dozen people, it was a major hub at the firm. DPG was centered between the firm’s two core businesses: the Investment Banking Division (IBD) and the Fixed Income Division (FID). My first observation at Morgan Stanley was that the most difficult part of working there would be memorizing all the damn acronyms.

Like most derivatives salesmen, I was an avid gambler and more attracted to FID than IBD. Fortunately, I wouldn’t have to make a choice. The firm had placed the derivatives group at the intersection of these two core business—and for good reasons. Derivatives were making the firm a lot of money, and the derivatives salesmen needed and deserved as much access and support as they could get. DPG had the benefit of direct ties to both the old-boy network of the investment bankers and the risk-taking expertise of the salesmen and traders. For convenience, DPG was centrally located just off the fourth-floor elevators on prime real estate, near the center of Morgan Stanley’s massive bond trading floor.

I can explain this more easily by an example. Suppose the one-year interest rate is 5 percent and the two-year interest rate is 10 percent. This is a very steep yield curve. Suppose you want to put $100 in savings away for two years. You can either (1) lock in 10 percent for two years, or (2) lock in 5 percent for one year, and wait to see what rate you can earn during the second year. Which would you do? If you lock in 10 percent for two years, and the one-year interest rate stays the same at 5 percent, you are better off. But if you lock in 10 percent for two years, and the one-year interest rate soars to 50 percent, you are worse off. What is the one-year break-even rate? In other words, how much would one-year rates need to increase before you earned the same return with either strategy? The answer—about 15 percent—is the one-year forward rate for one year. That is, the current yield curve is predicting, based on current trading between one and two year bonds, that in one year 15 percent will be the one-year rate. The actual rate in one year might be 15 percent, or it might not. The 15 percent rate is implied by current rates. There are elaborate formulas for calculating all the forward rates for every maturity and for deriving an entire forward curve, but the analysis is no more difficult than the above example.

From the firm’s perspective it was important to make as much money up front as possible on these trades. Take out a big fee, plant the time bomb, walk away, and wait. Of course, after the explosion the derivatives losers would sue, but as long as the firm had made enough money up front and could defend the lawsuit adequately, it would be fine. The important message I took from the disclaimers was this: The way you made money selling derivatives was by trying to blow up your clients.

You’re lucky. I wish I were so smart.” Maybe then I could graduate early and help my parents that much sooner. “Except I can’t even decide on a major.” “Why not? She blinks. “It’s hard to explain. I’m . . .” She glances away and then back. “I’m a polymath.” “A what now?” “It’s a person of wide-ranging knowledge or learning. Someone whose expertise spans a significant number of subject areas. The term itself is a derivative of poly, meaning many, and manthanein, a Greek verb meaning to learn.” I stare at her. “Reese, this is amazing.” She won’t meet my eyes. Instead, she picks up the pillow and holds it in her lap, fidgeting with the fabric at the corner. “You can literally do anything.” “But don’t you see?” Her eyes meet mine, flashing in frustration. “It’s impossible to pick only one thing. Our current global economy is hyperspecialized, while I’m a student of all things but a master of none. My parents are brilliant artists. Scarlett is a brilliant chef. I am more of a jack-of-all-trades. I can’t find any one specific thing I want to learn or excel at above all others.” “Huh. I still can’t see this as a disadvantage. You’re so smart that the sky is the limit.” “But the whole point of college and picking a career is to find that limit. Isn’t it?” “I don’t know.” I never thought about it that way. “I think it’s more than that. It’s about doing something you enjoy, something you feel passionate about.

The classic view of the correct price of a common stock is that it is derived from the value of all the future earnings. These earnings are uncertain and subject to unknowable factors. Could anyone have known beforehand how to allow for the impact of 9/11 on the future earnings, hence on the then current market price, of firms headquartered in the Twin Towers of the World Trade Center?

The classic view of the correct price of a common stock is that it is derived from the value of all the future earnings. These earnings are uncertain and subject to unknowable factors. Could anyone have known beforehand how to allow for the impact of 9/11 on the future earnings, hence on the then current market price, of firms headquartered in the Twin Towers of the World Trade Center? These future payoffs are discounted to a present value reflecting their various probabilities and risks.

In the Hibbert Lectures, Professor Rhys observes, "The Greek myth, which distressed the thoughtful and pious minds, like that of Socrates, was a survival, like the other scandalous tales about the gods, from the time when the ancestors of the Greeks were savages." May it not rather have been derived by Homer, through the trading Phœnicians, from the older mythologies of India and Egypt, with altered names and scenes to suit the poet's day and clime?

In 2011, just four Wall Street banks—JPMorgan Chase, Citigroup, Bank of America, and Goldman Sachs—accounted for 95 percent of the financial industry’s derivatives trading in the United States.34 It is a pattern of concentration that prevails in many other industries too, from media and computing to telecoms and supermarkets. Anyone who has played the board game Monopoly is well versed in the dynamics of Success to the Successful: players who are lucky enough to land on expensive properties early in the game can buy them up, build hotels, and reap vast rents from their fellow players, thus accumulating a winning fortune as they bankrupt the rest. Fascinatingly, however, the game was originally called ‘The Landlord’s Game’ and was designed precisely to reveal the injustice arising out of such concentrated property ownership, not to celebrate it.

P&G’s 1993 annual report disclosed that it held $2.41 billion of off-balance sheet derivatives contracts on June 30, 1993, up from $1.43 billion in 1992. In fact, by 1994 P&G’s derivatives trading was so large that by purchasing P&G stock, you were betting more than that detergent sales would rise, you were also betting that U.S. and German interest rates would fall. P&G shareholders would bear the costs of these trades. Although April 12 should have been a good day for P&G stock—quarterly earnings, without the derivatives losses, were up 15 percent—the stock market punished P&G for the losses, and its shares closed down.

Michael Lipper of the fund-tracking company Lipper Analytical Services said that the warnings applied to mutual funds, too; 475 of 1,728 stock, bond, and balanced funds had invested billions in derivatives, yet such holdings “magically seem to disappear” the day funds have to file statements with shareholders. Although mutual funds are forbidden by government regulation from using leverage to buy securities with borrowed money, the Investment Company Institute, a Washington-based mutual fund trade group, announced that mutual funds not only held derivatives worth $7.5 billion (2.13 percent of total assets), they owned $1.5 billion of the special derivatives called structured notes, of which PERLS was one type. For example, Fidelity Investment’s $10 billion Asset Manager fund had $800 million invested in structured notes in the last quarter of 1993, including leveraged bets on Finnish, Swedish, and British interest rates. One note, based on Canadian rates and leveraged thirteen times, had gained 33 percent the previous year; in the first four months of 1994, that same note plunged 25 percent. What was worse, the mutual fund trade groups didn’t even seem to know about the purchases of PLUS Notes.

Of course, as with most derivatives trades, MEXUS wasn’t entirely smooth sailing. At one point, after most of the deal was subscribed, everyone was joking about the time they had discovered at the last minute that they had forgotten to incorporate the special Bermuda company for a similar transaction. Everyone was roaring with laughter about the panic that had ensued. Then we realized that, with all of the focus on selling MEXUS, we, too, had forgotten to incorporate. “Deja vu all over again,” as Yogi Berra used to say. We immediately called our lawyers in Bermuda and discovered there was just enough time—assuming the lawyers could find the Bermuda minister of finance. His signature was required on the MEXUS corporate charter before the incorporation process could begin. An hour later the lawyer called us and said he had pulled the minister out of a meeting of the Bermuda Congress to get him to sign our charter. We could incorporate in time.

And if you believe more intimate knowledge of these concepts might make you a well-rounded person, you’d better keep that belief to yourself, especially if you work on a trading floor. The only way to become well rounded on a trading floor is by eating fattening foods. Of course, if you can use knowledge of complex derivatives mathematics as a smoke screen to hide important facts from your clients, fine. But if you actually want to acquire knowledge that has no monetary value, forget it. You’re in the wrong business.

The other type of derivative—a “forward”—is an obligation to buy or sell something in the future. This obligation is called a future if it’s traded on an exchange, but the concept is the same. Suppose you knew you wanted to buy a new Corvette, but you didn’t want to pay $1,000 for an option. Instead, you could enter into a forward obligation to purchase the Corvette for $40,000 in a month. When the new Corvettes arrived, you would be obligated to buy one for $40,000 even if the actual price were lower. As with a call option, you would want the price to increase. But with a forward, your downside is no longer limited, so you especially wouldn’t want the price to drop. Even if the Corvette’s price were to drop to $30,000, you still would have to buy it for $40,000. Despite this downside risk, there’s at least one good reason to buy a forward instead of an option—you would save the $1,000 option premium.

Options and forwards are traded on all kinds of financial instruments, including stocks, bonds, and various market indices. Some are traded on organized exchanges throughout the world. Others are traded only in privately negotiated transactions, called over-the-counter, or OTC. Exchange-traded derivatives are more highly regulated, more liquid, and more dependable than OTC derivatives. To get information about an exchange-traded derivative, you can simply look in the Wall Street Journal or call a broker. In contrast, you might never be able to discover certain information about an OTC derivative unless you worked in the derivatives group at an investment bank.

Convexity” is an incredibly complex topic far beyond the scope of this book. All you need to know about convexity—in fact, all that 99 percent of people who work on a trading floor know about convexity—is this: Convexity is good. The more convex a bond is, the more money you will make on it when interest rates change. This explanation works for the bizarre term “negative convexity,” too. Here’s a final examination question for you: If convexity is good, what do you think about “negative convexity”? If you answered that negative convexity is bad, you are correct. Congratulations. You now know enough to begin selling derivatives.

First, we found a Mexican bank, Groupo Financiero Serfin, often called Serfin Securities. Its corporate logo, a golden bird engulfed in a circular insignia, resembled the warning symbol for nuclear waste. Many risky derivatives were called nuclear waste, but the derivatives Serfin bought especially deserved the label. Next, we needed a name, and PLUS III didn’t seem very creative. We finally settled on MEXUS, for “Mexican U.S.$ Security.” MEXUS could be written as MEXU$, and it sounded like LEXUS. We marketed the trade as the premiere, luxurious Mexican derivative.

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Trick #1 for Farming Humans is the ability to invisibly commit crime. Chapter 1, Page 9, Ring of Gyges Trick #2 for Farming Humans is to allow professionals to create rigged systems or self serving social constructs. Chapter 4, page 28 (Lawyers who serve corporate interests are often incentivized to assist in harming the society to increase their own security. SEC, Bernie Madoff, Corporations as invisible friends, Money laundering assistance) Trick #3 in Farming Humans is making it legal for insider manipulation of public markets for private gain. (Boeing CEO) page 32 Trick #4 for Farming Humans is Justice prefers to look only down…rarely up towards power. Chapter 5, page 33. Trick #5 for Farming Humans is “let us create the nation’s money”. What could go wrong? Found in Chapter 7 on page 38. Trick # 6 in the game of Farming Humans, to create something which gives a few men an elevated status above the rest. Southern Pacific Railroad taxes, to Pacific Gas and Electric deadly California fires, to Boeing aircraft casualties. Paper “persons” cannot be arrested or jailed. Trick #7 for Farming Humans is a private game of money creation which secretly “borrowed” on the credit backing of the public. Chapter 9, page 51. Federal Reserve. Trick #8 for Farming Humans is seen in the removal of the gold backing of US dollars for global trading partners, a second default of the promises behind the dollar. (1971) Chapter 15, page 81 Trick #9 for Farming Humans is being able to sell out the public trust, over and over again. Supreme Court rules that money equals speech. Chapter 16, page 91. Trick #10 for Farming Humans is Clinton repeals Glass Steagall, letting banks gamble America into yet another financial collapse. Chapter 17, page 93. Trick #11 for Farming Humans is when money is allowed to buy politics. Citizens United, super PAC’s can spend unlimited money during campaigns. Chapter 18, page 97. Trick #12 for Farming Humans is the Derivative Revolution. Making it up with lawyers and papers in a continual game of “lets pretend”. Chapter 19, page 105. Trick #13 for Farming Humans is allowing dis-information to infect society. Chapter 20, page 109. Trick #14 for Farming Humans is substitution of an “advisor”, for what investors think is an “adviser”. Confused yet? The clever “vowel movement” adds billions in profits, while farming investors. Trick #15 for Farming Humans is when privately-hired rental-cops are allowed to lawfully regulate an industry, the public gets abused. Investments, SEC, FDA, FAA etc. Chapter 15, page 122 Trick #16 for Farming Humans is the layer of industry “self regulators”, your second army of people paid to “gaslight” the public into thinking they are protected.

But if my team and I could take pride in the substance of what we’d achieved, we also had to acknowledge what had become obvious even before the bill was signed: Dodd-Frank’s historic reforms weren’t going to give us much of a political lift. Despite valiant efforts by Favs and the rest of my speechwriters, it was hard to make “derivative clearinghouses” and “proprietary trading bans” sound transformational. Most of the law’s improvements to the system would remain invisible to the public—more a matter of bad outcomes prevented than tangible benefits gained.

The British Empires conversion of the vast indigenous economy of North America into aristocratic property provides an illuminating paralell, in fact, for a company like Amazon, whose trillion dollar market capitalization is derived from the usurpation of a thriving pre existing system of shops, markets, libraries and the like. With their bundles of patents and global monopolies, twenty-first-centruy tech conglomerates have swelled to the scale of eighteenth century trading companies and with a speed quite foreign to the plodding first economy. But they are more than just businesses. Silicon Valley firms have a profound impact on world organization, and key players such as Peter Thiel creates of PayPal, early investor in Facebook, and cofounder of the surveillance company Palantir Technologies possess political power greater than most heads of state. The old caveats apply once more. First, the second economy serves elites almost exclusively. Again fit is chiefly financialized, and building financial instruments remains the preserve of the rich. 84 percent of corporate stock is owned by the wealthiest 10 percent. But even this decile is largely denied access to the heart of the second economy. Some 80 percent of Facebook stock. worth over half a trillion dollars is owned by 25 individuals and institutions, though Mark Zuckerberg retains only 28 percent of the company, this includes a vital 60 percent of the Class B voting shares. Since Facebook is an entity comparable in scale to a nation state, and serves some of the same functions, this determination not to share political power is instructive. Valuations of such companies are inflated by their monopolistic nature and by the financial institutions that control them to the point of total departure form the first economy. This fall, during the most serious economic recession since the 1930s, the values of Tesla, Amazon and Facebook all hit record stock-market highs

there is no way to derive profits from traded securities since these instruments have automatically incorporated all the available information. Public information can therefore be useless,

Haramis.” Harami, meaning a “sinner, thief, someone born illicitly.” The word carries a lot of meaning and the Iranians adopted it as well from the Arabic language. Tara was unzipping her suitcase, ready to take some clothes to take a shower. “Tell that to a trader and he might get a chuckle out of what you said,” Tara said. “Huh?” Amir had no idea what she meant. “The word harami, it’s a candlestick pattern.” “A candlestick pattern? What are you talking about?” Amir was now even more dumbfounded. “I was bored one day so I read and learned about trading. Stock trading,” Tara said as she started to take a set of clothes out of her suitcase. “Candlestick charts are patterns used by traders to look at price movements in stocks and stuff.” She closed her suitcase up and looked up at Amir. “Harami is a candlestick pattern. It means “skirt steak” in Japanese but it also derives its meaning from the word pregnant. And it basically shows one candlestick engulfing a smaller one. A pattern for traders to analyze which direction the stock or security will go.

Rather, it favored the technological advancement and industrial productivity of the nations of the center, which in turn forged a potent legacy in which the value of raw materials declined as productivity rose. The allegedly “natural” operation of trade was anything but, Prebisch said. Comparative advantage was not a scientific law with absolute or universal scope. Instead it was an outcome of policy derived from past power relations. It followed that the wealth of the center had less to do with the benefits derived from the expansion of commerce than with the inequitable structure of that commerce.33

There is no such thing as exclusively national thinking. The work intended to benefit science and humanity necessarily interests everyone, but Belgium and its Sovereign will indirectly derive honor and great moral benefit from it; in this sense, there is a truly and usefully Belgian thought. We do not have a view of colonial acquisition, but over time trade will undoubtedly find its value there as well.

Look at stocks as part ownership of a business. 2. Look at Mr. Market—volatile stock price fluctuations—as your friend rather than your enemy. View risk as the possibility of permanent loss of purchasing power, and uncertainty as the unpredictability regarding the degree of variability in the possible range of outcomes. 3. Remember the three most important words in investing: “margin of safety.” 4. Evaluate any news item or event only in terms of its impact on (a) future interest rates and (b) the intrinsic value of the business, which is the discounted value of the cash that can be taken out during its remaining life, adjusted for the uncertainty around receiving those cash flows. 5. Think in terms of opportunity costs when evaluating new ideas and keep a very high hurdle rate for incoming investments. Be unreasonable. When you look at a business and get a strong desire from within saying, “I wish I owned this business,” that is the kind of business in which you should be investing. A great investment idea doesn’t need hours to analyze. More often than not, it is love at first sight. 6. Think probabilistically rather than deterministically, because the future is never certain and it is really a set of branching probability streams. At the same time, avoid the risk of ruin, when making decisions, by focusing on consequences rather than just on raw probabilities in isolation. Some risks are just not worth taking, whatever the potential upside may be. 7. Never underestimate the power of incentives in any given situation. 8. When making decisions, involve both the left side of your brain (logic, analysis, and math) and the right side (intuition, creativity, and emotions). 9. Engage in visual thinking, which helps us to better understand complex information, organize our thoughts, and improve our ability to think and communicate. 10. Invert, always invert. You can avoid a lot of pain by visualizing your life after you have lost a lot of money trading or speculating using derivatives or leverage. If the visuals unnerve you, don’t do anything that could get you remotely close to reaching such a situation. 11. Vicariously learn from others throughout life. Embrace everlasting humility to succeed in this endeavor. 12. Embrace the power of long-term compounding. All the great things in life come from compound interest.

The internal slave trade became the largest enterprise in the South outside of the plantation itself, and probably the most advanced in its employment of modern transportation, finance, and publicity. It developed its own language: prime hands, bucks, breeding wenches, and fancy girls. Its routes, running counter to the freedom trails that fugitive slaves followed north, were similarly dotted by safe houses - pens, jails, and yards that provided resting places for slave traders as well as temporary warehouses for slaves. In all, the slave trade, with its hubs and regional centers, its spurs and circuits, reached into every cranny of southern society. Few southerners, white or black, were untouched. In the half century following the War of 1812, planters and traders expanded and rationalized the transcontinental transfer of slaves. During the second decade of the nineteenth century, traders and owners sent an estimated 120,000 slaves from the seaboard to the west, with the states and territories of Georgia, Tennessee, Alabama, and Louisiana being the largest recipients. That number increased substantially during the following decade and yet again during the 1830s, when slave traders and migrating planters uprooted almost 300,000 black men, women, and children. By this time, though most of the slaves still derived from the Upper South - particularly Maryland and Virginia - their destination had moved further west. Alabama and Mississippi had become the largest recipients, with each receiving nearly 100,000 slaves during the 1830s. The Panic of 1837 and the subsequent decline in cotton and sugar production deflated the price of slaves and the trade slackened for a few years. But prices soon revived and with them the demand for slaves. Nearly one quarter of a million slaves left the seaboard for the interior during the 1850s, with more than half being taken west of the Mississippi River. The 'mania for buying negroes' easily overwhelmed periodic bans against slave importation and did not cease until the arrival of Union troops.

Just as I support my life, neither by robbery nor alms, but by my own effort, so I do not seek to derive my happiness from the injury or the favor of others, but earn it by my own achievement. Just as I do not consider the pleasure of others as the goal of my life, so I do not consider my pleasure as the goal of the lives of others. Just as there are no contradictions in my values and no conflicts among my desires—so there are no victims and no conflicts of interest among rational men, men who do not desire the unearned and do not view one another with a cannibal’s lust, men who neither make sacrifices nor accept them. “The symbol of all relationships among such men, the moral symbol of respect for human beings, is the trader. We, who live by values, not by loot, are traders, both in matter and in spirit. A trader is a man who earns what he gets and does not give or take the undeserved. A trader does not ask to be paid for his failures, nor does he ask to be loved for his flaws. A trader does not squander his body as fodder or his soul as alms. Just as he does not give his work except in trade for material values, so he does not give the values of his spirit—his love, his friendship, his esteem—except in payment and in trade for human virtues, in payment for his own selfish pleasure, which he receives from men he can respect. The mystic parasites who have, throughout the ages, reviled the traders and held them in contempt, while honoring the beggars and the looters, have known the secret motive of their sneers: a trader is the entity they dread—a man of justice.

If the tax system is not made more progressive, it should come as no surprise that those who derive the least benefit from free trade may well turn against it. The progressive tax is indispensable for making sure that everyone benefits from globalization, and the increasingly glaring absence of progressive taxation may ultimately undermine support for a globalized economy.

In Venice and the French city of Verdun ‘castration houses’ were set up to produce eunuchs for export to Egypt and other Muslim countries. The majority of the young boys were Slavs taken prisoner by the Vikings and then sold on to slavers. The Slavs, from whose name is derived the modern word ‘slave’, are an ethnic group which originated in what is today western Russia. By the sixth or seventh century AD, they had spread south into the Balkans, almost as far as Greece, and west into what is now Poland.

Buying money with money and earning through selling money is called the right business!

limited partnerships that do some combination of the following: unleveraged investment in high-tech corporations in their infancy; leveraged investments in corporate buyouts; leveraged relative value trades in equities; and leveraged convergence trades and other exotic trades in all kinds of securities and derivatives.

The idea of race is a recent phenomenon in human history. It dates to the start of the transatlantic slave trade and thus to the subsequent caste system that arose from slavery. The word race likely derived from the Spanish word raza and was originally used to refer to the “ ‘caste or quality of authentic horses,’ which are branded with an iron so as to be recognized,” wrote the anthropologists Audrey and Brian Smedley.

Let’s take a look at the five major asset classes: Alternative assets, which are usually physical assets like fine watches, real estate, collectible cars, art, and jewelry Stocks, which represent ownership of a piece of a publicly traded company Fixed-income investments such as government bonds and deposit certificates Cash, such as dollar bills, and cash equivalents such as savings accounts, retirement accounts, and 401(k)s Futures and other derivatives, which are contracts between two parties agreeing to buy and sell assets, usually commodities like gold, corn, wheat, or cows, at a future date

The further falsehoods and distortions that make up King Hochschild’s Hoax all collectively derive from the problems above. Perhaps most remarkably, the book is not really much about the history of the EIC at all. The central activity that justified, motivated, absorbed, and in the end defeated the EIC is missing: the battle against the Afro-Arab slave trade. This is akin to writing a history of the 68 years of colonial Kenya that limits itself only to the eight years of Mau Mau counter-insurgency campaign.

To apply first principles thinking to the field of value investing, consider several fundamental truths. Understand and practice the following if you want to become a good investor: 1. Look at stocks as part ownership of a business. 2. Look at Mr. Market—volatile stock price fluctuations—as your friend rather than your enemy. View risk as the possibility of permanent loss of purchasing power, and uncertainty as the unpredictability regarding the degree of variability in the possible range of outcomes. 3. Remember the three most important words in investing: “margin of safety.” 4. Evaluate any news item or event only in terms of its impact on (a) future interest rates and (b) the intrinsic value of the business, which is the discounted value of the cash that can be taken out during its remaining life, adjusted for the uncertainty around receiving those cash flows. 5. Think in terms of opportunity costs when evaluating new ideas and keep a very high hurdle rate for incoming investments. Be unreasonable. When you look at a business and get a strong desire from within saying, “I wish I owned this business,” that is the kind of business in which you should be investing. A great investment idea doesn’t need hours to analyze. More often than not, it is love at first sight. 6. Think probabilistically rather than deterministically, because the future is never certain and it is really a set of branching probability streams. At the same time, avoid the risk of ruin, when making decisions, by focusing on consequences rather than just on raw probabilities in isolation. Some risks are just not worth taking, whatever the potential upside may be. 7. Never underestimate the power of incentives in any given situation. 8. When making decisions, involve both the left side of your brain (logic, analysis, and math) and the right side (intuition, creativity, and emotions). 9. Engage in visual thinking, which helps us to better understand complex information, organize our thoughts, and improve our ability to think and communicate. 10. Invert, always invert. You can avoid a lot of pain by visualizing your life after you have lost a lot of money trading or speculating using derivatives or leverage. If the visuals unnerve you, don’t do anything that could get you remotely close to reaching such a situation. 11. Vicariously learn from others throughout life. Embrace everlasting humility to succeed in this endeavor. 12. Embrace the power of long-term compounding. All the great things in life come from compound interest.

Charles Koch had finally built a machine that was poised to thrive, even profit, in the midst of violent market corrections. This capability derived, in part, from something that Charles Koch called “the trading mentality.” This mentality held that it didn’t matter so much if markets were going up or down; what mattered was that the traders could see ways to exploit large shifts in the markets. During volatile times, companies and governments and competing traders were thrown off balance. Prices diverged. Supplies were interrupted. Gaps emerged between market prices and underlying values. Koch became nimble, even expert, at exploiting those gaps for its gain.

In the farming economy, buildings had counted for little, for it was in the fields surrounding them that the source of all productive value lay. But in the modern city, land became the launching pad for new vertical economies—derived from the acreage beneath but multiplied by the number of square feet that could be built above. Here wealth turned increasingly mobile and intangible as it wrested itself free from the earth-bound limitations of agricultural or even factory production.

But even the biggest Wall Street banks were at a disadvantage when they went up against the traders at Koch Industries, British Petroleum, or Amoco. The Wall Street banks didn’t have access to inside information. Goldman Sachs didn’t own refineries or pipelines and couldn’t get a sneak peek into where markets were headed. The banks had to resort to second-rate information that was publicly available, like government reports on monthly energy supplies. It was a losing proposition. In the mid-1990s, the Wall Street banks came to Koch Industries, asking for help. “We kept getting approached by banks, who say, ‘Hey, Koch. You guys are so good at this physical stuff, we’d like to partner with you,’ ” recalled a former senior Koch executive who was heavily involved in trading operations. The banks came to Koch with the same pitch: the banks would handle “all this financial stuff,” while Koch handled the physical end of trading and shared information from its operations. If Koch executives were flattered by the attention from Wall Street, they didn’t show it for long. “We kind of got curious—or, suspicious is the better term,” the executive recalled. Rather than help the banks out, Koch set up a team to study why the banks were so interested in their business. Koch hired the outside consulting firm McKinsey & Company to study what was happening in commodities markets during the 1990s. McKinsey reported that the world of trading had grown even larger and more profitable than Koch Industries had suspected. As it happened, the futures contracts that Koch was trading had become the “plain vanilla” products in a rapidly booming market. Now there were more exotic, more opaque, and far more profitable financial products on the market. These products were called “derivatives.” That’s where the real money was.

Cherokee, the name by which they are commonly known, has no meaning in their own language, and seems to be of foreign origin. As used among themselves the form is Tsa′lg′ or Tsa′rg′. It first appears as Chalaque in the Portuguese narrative of De Soto’s expedition, published originally in 1557, while we find Cheraqui in a French document of 1699, and Cherokee as an English form as early, at least, as 1708. The name has thus an authentic history of 360 years. There is evidence that it is derived from the Choctaw word choluk or chiluk, signifying a pit or cave, and comes to us through the so-called Mobilian trade language, a corrupted Choctaw jargon formerly used as the medium of communication among all the tribes of the Gulf states, as far north as the mouth of the Ohio (2).

Charles Koch could make the case that his company wasn’t just perpetually growing, but perpetually transforming as well, entering new industries, abandoning the old, always searching for the next opportunity. And bolstering these experimental efforts were the reliable cash cows. The Pine Bend refinery, still refining cheap crude and selling expensive gasoline, throwing off cash around the clock. And now Corpus Christi, repeating the same trick thanks to the fracking revolution. And the trading division, still selling derivatives, still trading in markets where it had an unparalleled view into real-time shipments and inventories.

Each Koch lobbyist was like the regional manager of a franchise. They built expertise on certain policy issues, like climate change legislation or derivatives trading, and they had the ability to hire contractors from outside firms if they needed to beef up staff. This allowed Koch to build up or reduce its expertise on different topics as they arose in Congress. Sometimes, the outside contractors joined Koch’s team for its Monday meetings.

The proof of existence of arithmetic is the reality in the partialization of the barter trade. The proof of existence of mathematical logic is the arithmetic. Therefore mathematical logic can only serve as a centralization of arithmetic. It derives its life from arithmetic.

In any case, the theory of Brownian motion was independently developed in 1900 by a Frenchman, Louis Bachelier. Bachelier was not actually concerned with the motion of microscopic particles suspended in a liquid. He was concerned with prices on the French stock market. Prices on the Bourse, like particles in a liquid, are subject to a vast array of random forces, so many that the prices’ behavior can only be studied probabilistically. This is exactly what Bachelier did in his remarkable doctoral thesis, “The Theory of Speculation.” Yet although his paper is couched in terms of futures and stock options and “call-o-more’s” (whatever those are), the mathematics is identical to that of Brownian motion, and Bachelier’s equation explaining the drift of prices with time is the same as the one Einstein later derived for the position of particles. In his paper Bachelier anticipated the Black-Scholes approach to options trading, and for his prescient work he has in recent years been crowned the “father of economic modeling.” At the time, though, Bachelier seems to have been ignored, and he passed into obscurity. Could Einstein have known of his predecessor’s work and merely transplanted the mathematics to particles? I am aware of no evidence that this is the case.

Psychological research and social surveys consistently find that people around the world continue to derive most of their pleasure from having sex, eating, drinking, relaxing and socialising with family and friends. In private, many of them also seek chemical pleasure from illicit drugs, which is why drug trafficking is estimated to account for around 8 per cent of all international trade.

Unhappily, the basic assumption that most institutional investors can outperform the market is false. Today, the institutions are the market. Institutions do over 95 percent of all exchange trades and an even higher percentage of off-board and derivatives trades. It is precisely because investing institutions are so numerous and capable and determined to do well for their clients that investment has become a loser’s game. Talented and hardworking as they are, professional investors cannot, as a group, outperform themselves. In fact, given the cost of active management—fees, commissions, market impact of big transactions, and so forth—investment managers have and will continue to underperform the overall market. Individual

NRIs are allowed to invest in exchange traded derivatives out of rupee funds held in India on a non-repatriation basis in all exchange trade derivative contracts subject to the limit given by SEBI. However, an NRI is required to notify to the exchange the names of the Clearing Member/s through whom he would clear his derivative trades. NRIs are not allowed to invest in any derivative instrument that is not traded on exchanges.

Now, there obviously is a white working class in the u.s. A large one, of many, many millions. From offshore oil derricks to the construction trades to auto plants. But it isn't a proletariat. It isn't the most exploited class from which capitalism derives its super profits. Far fucking from it. As a shorthand I call it the "whitetariat". Unfortunately, whenever Western radicals hear words like "unions" and "working class" a rosy glow glazes over their vision, and the "Internationale" seems to play in the background. Even many anarchists seem to fall into a daze and to magically transport themselves back to seeing the militant socialist workers of Marx and Engels' day. Forgetting that there have been many different kinds of working classes in history. Forgetting that Fred Engels himself criticized the English industrial working class of the late 19th century as a "bourgeois proletariat", an aristocracy of labor. He pointed out how you could tell the non-proletarian, "bourgeois" strata of the English working class – they were the sectors that were dominated by adult men, not women or children. Engels also wrote that the "bourgeois" sectors were those that were unionized. Sounds like a raving ultra-leftist, doesn't he? (which he sure wasn't). So that this is a strategic and not a tactical problem, that it has a material basis in imperialized class privilege, has long been understood by those willing to see reality. (the fact that we have radical movements here addicted to not seeing reality is a much larger crisis than any one issue).

The opportunity to develop competencies may be handed to us in the form of a crisis, as was the case with Brooksley Born, the first female president of the Law Review at Stanford, the first female to finish at the top of the class and an expert in commodities and futures. Charged with the oversight of the U.S. government’s Commodity Futures Trading Commission (CFTC) by the Clinton Administration, Born could foresee what would happen if there wasn’t more regulatory oversight in the multitrillion dollar derivatives markets. Yet no one in government or in the financial markets would listen; in 2008 alone, the U.S. market lost about $8 trillion in value. She has since been dubbed the “Credit Crisis Cassandra.” In Greek mythology, Cassandra was given both the gift of seeing the future and the curse of having no one believe her predictions. In the case of Brooksley Born, the attacks by very powerful people were harsh and unrelenting. She was right, while those around her were gravely wrong. Yet, when I listen to Born and read her interviews, there is no anger, no recrimination in her voice, only grace. Brooksley Born never would have chosen this situation. She recounts waking in a cold sweat many a night. She has learned from her trial by fire and we can learn from her. Sometimes we set out to develop competencies, sometimes we don’t. Either way, if we do something enough, we are likely to get good at it. As poet Emily Dickinson wrote, Luck is not chance— It’s toil— Fortune’s expensive smile Is earned.

Take Brooksley Born, former chair of the Commodity Futures Trading Commission (CFTC), who waged an unsuccessful campaign to regulate the multitrillion-dollar derivatives market. Soon after the Clinton administration asked her to take the reins of the CFTC, a regulatory backwater, she became aware of the over-the-counter (OTC) derivatives market, a rapidly expanding and opaque market, which she attempted to regulate. According to a PBS Frontline special: "Her attempts to regulate derivatives ran into fierce resistance from then-Fed Chairman Alan Greenspan, then-Treasury Secretary Robert Rubin, and then-Deputy Treasury Secretary Larry Summers, who prevailed upon Congress to stop Born and limit future regulation." Put more directly by New York Times reporter Timothy O'Brien, "they ... shut her up and shut her down." Mind you, Born was no dummy. She was the first female president of the Stanford Law Review, the first woman to finish at the top of the class, and an expert in commodities and futures. But because a trio of people who were literally en-titled decided they knew what was best for the market, they dismissed her call for regulation, a dismissal that triggered the financial collapse of 2008. To be fair to Greenspan et al., their resistance was not surprising. According to psychologists Hillel Einhorn and Robin Hogarth, "we [as human beings] are prone to search only for confirming evidence, and ignore disconfirming evidence." In the case of Born, it was the '90s, the markets were doing well, and the country was prospering; it's easy to see why the powerful troika rejected her disconfirming views. Throw in the fact that the disconcerting evidence was coming from a "disconfirming" person (i.e., a woman), and they were even more likely to disregard the data. In the aftermath, Arthur Levitt, former chairman of the SEC, said, "If she just would have gotten to know us... maybe it would have gone a different way."12 Born quotes Michael Greenberg, the director of the CFTC under her, as saying, "They say you weren't a team player, but I never saw them issue you a uniform." We like ideas and people that fit into our world-view, but there is tremendous value in finding room for those that don't. According to Paul Carlile and Clayton Christensen, "It is only when an anomaly is identified—an outcome for which a theory can't account that an opportunity to improve theory occurs."13 One of the ways you'll know you are coming up against an anomaly is if you find yourself annoyed, defensive, even dismissive, of a person, or his idea.

It was a few years after the beginning of the Lebanese war, as I was attending the Wharton School, at the age of twenty-two, that I was hit with the idea of efficient markets—an idea that holds that there is no way to derive profits from traded securities since these instruments have automatically incorporated all the available information. Public information can therefore be useless, particularly to a businessman, since prices can already “include” all such information, and news shared with millions gives you no real advantage. Odds are that one or more of the hundreds of millions of other readers of such information will already have bought the security, thus pushing up the price. I then completely gave up reading newspapers and watching television, which freed up a considerable amount of time (say one hour or more a day, enough time to read more than a hundred additional books per year, which, after a couple of decades, starts mounting). But this argument was not quite the entire reason for my dictum in this book to avoid the newspapers, as we will see further benefits in avoiding the toxicity of information. It was initially a great excuse to avoid keeping up with the minutiae of business, a perfect alibi since I found nothing interesting about the details of the business world—inelegant, dull, pompous, greedy, unintellectual, selfish, and boring.

In recent years much publicity has been given to the area of the Shan State which falls within the ‘Golden Triangle’. This is the name given to the junction where Burma, Laos and Thailand meet. It is an area where opium poppies are grown in vast quantities. One of the most dangerous drugs of today, heroin, is derived from opium. The growing addiction to heroin among people in America and Western Europe has made it very valuable. However, the poor farmers who grow opium poppies do not get rich. It is the people who smuggle heroin in large quantities to the western countries who make large profits. Some of the people who grow opium also become addicted to it. However, as they do not take it in a highly concentrated and refined form, the effects are not as disastrous as among heroin addicts who inject the drug into their bodies. Attempts are being made by several governments to control the opium trade. This is not easy, however, as the ‘Golden Triangle’ covers difficult terrain, parts of it often overrun by rebels. Apart

There is a huge amount of freedom that is derived from not fighting the market.

Hans W. Frei argues that the Enlightenment period was liable for a significant portion of the eclipse of the biblical narratives. In place of the biblical narrative as the hermeneutical source and target came “the single meaning of a grammatically and logically sound propositional statement.”125 Grondin insightfully writes, regarding this emphasis on proposition, “For hermeneutics, by contrast, the proposition is something secondary and derivative.”126 The road from university to diversity traded story for proposition, mystery for the exactness of rules, and a deductive slant for one that was largely inductive. Thus, Western biblical hermeneutics followed the Enlightenment-influenced trail that saw hermeneutics as the study of right principles or as the laying out of rules governing the discipline of interpretation.

A good part of the state’s assets were privatized, including electric power distribution, banks, and telecommunications. The country lacks a national currency, having shifted from the colón to the U.S. dollar in 2001. The country’s main export is people, who travel to and remain in the United States and other countries and send back remittances, which constitute one of the largest contributions to the nation’s GDP; drug money-laundering may bring in more than remittances, but nobody knows for sure. A sizable proportion of economically viable enterprises are now owned wholly or partially by multinational corporations, including the important banks, all communications (mobile phones and internet), beer, petroleum derivatives, and airlines. The country imports a lot of what it consumes, especially foodstuffs, energy, and health products, which is reflected in a chronic trade deficit that would be unsustainable were it not for remittances.

Palo Mayombe is perhaps best known for its display of human skulls in iron cauldrons and accompanied by necromantic practices that contribute to its eerie reputation of being a cult of antinomian and hateful sorcerers. This murky reputation is from time to time reinforced by uninformed journalists and moviemakers who present Palo Mayombe in similar ways as Vodou has been presented through the glamour and horror of Hollywood. It is the age old fear of the unknown and of powers that threaten the established order that are spawned from the umbra of Palo Mayombe. The cult is marked by ambivalence replicating an intense spectre of tension between all possible contrasts, both spiritual and social. This is evident both in the history of Kongo inspired sorcery and practices as well as the tension between present day practitioners and the spiritual conclaves of the cult. Palo Mayombe can be seen either as a religion in its own right or a Kongo inspired cult. This distinction perhaps depends on the nature of ones munanso (temple) and rama (lineage). Personally, I see Palo Mayombe as a religious cult of Creole Sorcery developed in Cuba. The Kongolese heritage derives from several different and distinct regions in West Africa that over time saw a metamorphosis of land, cultures and religions giving Palo Mayombe a unique expression in its variety, but without losing its distinct nucleus. In the history of Palo Mayombe we find elite families of Kongolese aristocracy that contributed to shaping African history and myth, conflicts between the Kongolese and explorers, with the Trans-Atlantic slave trade being the blood red thread in its development.

Modern free trade argument is based on the so-called Heckscher-Ohlin-Samuelson theory (or the HOS theory). The HOS theory derives from David Ricardo's theory, which I outlined in chapter 2, but it differs from Ricardo's theory in one crucial respect. It assumes that comparative advantage arises from international differences in the relative endowments of 'factors of production' (capital and labour), rather than international differences in technology, as in Ricardian theory.

Still, one could argue—and many did—that Greenspan, at least, had no business being quite so shocked. Over the years, countless people had challenged his deregulatory dogma, including (to name just a few) Joseph Stiglitz and Paul Krugman, both Nobel Prize–winning economists, and Brooksley Born, who was head of the Commodity Futures Trading Commission from 1996 to 1999. Born eventually became something of a Cassandra figure for the crisis, since she repeatedly called for regulating the market for derivatives, those ultracomplex financial products that eventually helped bring down the economy. Those calls were silenced when Greenspan, along with then-Treasury Secretary Robert Rubin and then-Securities and Exchange Commission Chair Arthur Levitt, took the extraordinary step of convincing Congress to pass legislation forbidding Born’s agency from taking any action for the duration of her term.

The adjective “efficient” in “efficient markets” refers to how investors use information. In an efficient market, every titbit of new information is processed correctly and immediately by investors. As a result, market prices react instantly and appropriately to any relevant news about the asset in question, whether it is a share of stock, a corporate bond, a derivative, or some other vehicle. As the saying goes, there are no $100 bills left on the proverbial sidewalk for latecomers to pick up, because asset prices move up or down immediately. To profit from news, you must be jackrabbit fast; otherwise, you’ll be too late. This is one rationale for the oft-cited aphorism “You can’t beat the market.” An even stronger form of efficiency holds that market prices do not react to irrelevant news. If this were so, prices would ignore will-o’-the-wisps, unfounded rumors, the madness of crowds, and other extraneous factors—focusing at every moment on the fundamentals. In that case, prices would never deviate from fundamental values; that is, market prices would always be “right.” Under that exaggerated form of market efficiency, which critics sometimes deride as “free-market fundamentalism,” there would never be asset-price bubbles. Almost no one takes the strong form of the efficient markets hypothesis (EMH) as the literal truth, just as no physicist accepts Newtonian mechanics as 100 percent accurate. But, to extend the analogy, Newtonian physics often provides excellent approximations of reality. Similarly, economists argue over how good an approximation the EMH is in particular applications. For example, the EMH fits data on widely traded stocks rather well. But thinly traded or poorly understood securities are another matter entirely. Case in point: Theoretical valuation models based on EMH-type reasoning were used by Wall Street financial engineers to devise and price all sorts of exotic derivatives. History records that some of these calculations proved wide of the mark.

No Some Yes G. Overall Performance Objective Is the performance objective: ___ ___ ___ 1. Clear (you/others can construct an assessment to test learners)? ___ ___ ___ 2. Feasible in the learning and performance contexts (time, resources, etc)? ___ ___ ___ 3. Meaningful in relation to goal and purpose for instruction (not insignificant)? H. (Other) ___ ___ ___ 1. Your complete list of performance objectives becomes the foundation for the next phase of the design process, developing criterion-referenced test items for each objective. The required information and procedures are described in Chapter 7. Judge the completeness of given performance objectives. Read each of the following objectives and judge whether it includes conditions, behaviors, and a criterion. If any element is missing, choose the part(s) omitted. 1. Given a list of activities carried on by the early settlers of North America, understand what goods they produced, what product resources they used, and what trading they did. a. important conditions and criterion b. observable behavior and important conditions c. observable behavior and criterion d. nothing 2. Given a mimeographed list of states and capitals, match at least 35 of the 50 states with their capitals without the use of maps, charts, or lists. a. observable response b. important conditions c. criterion performance d. nothing 3. During daily business transactions with customers, know company policies for delivering friendly, courteous service. a. observable behavior b. important conditions c. criterion performance d. a and b e. a and c 4. Students will be able to play the piano. a. important conditions b. important conditions and criterion performance c. observable behavior and criterion performance d. nothing 5. Given daily access to music in the office, choose to listen to classical music at least half the time. a. important conditions b. observable behavior c. criterion performance d. nothing Convert instructional goals and subordinate skills into terminal and subordinate objectives. It is important to remember that objectives are derived from the instructional goal and subordinate skills analyses. The following instructional goal and subordinate skills were taken from the writing composition goal in Appendix E. Demonstrate conversion of the goal and subordinate skills in the goal analysis by doing the following: 6. Create a terminal objective from the instructional goal: In written composition, (1) use a variety of sentence types and accompanying punctuation based on the purpose and mood of the sentence, and (2) use a variety of sentence types and accompanying punctuation based on the complexity or structure of the sentence. 7. Write performance objectives for the following subordinate skills: 5.6 State the purpose of a declarative sentence: to convey information 5.7 Classify a complete sentence as a declarative sentence 5.11 Write declarative sentences with correct closing punctuation. Evaluate performance objectives. Use the rubric as an aid to developing and evaluating your own objectives. 8. Indicate your perceptions of the quality of your objectives by inserting the number of the objective in either the Yes or No column of the checklist to reflect your judgment. Examine those objectives receiving No ratings and plan ways the objectives should be revised. Based on your analysis, revise your objectives to correct ambiguities and omissions. P

It was not that “slave trade profits” flowed through some fiendish channels into the dark satanic mills. But the burgeoning Atlantic trade of the eighteenth century derived its value from the products of slave labor and would have been much diminished in the absence of slavery. As sugar became an item of common consumption in Britain, the sugar trade provided a powerful stimulus for a diverse range of occupations and ancillary activities, especially in London.

present, there exists no overarching regulatory framework governing OTC derivatives markets in any major jurisdiction. Provided that certain qualifications are met, 29 OTC derivatives transactions generally reside outside the scope of securities, insurance and other regulatory regimes in the jurisdictions in which they notionally take place.Accordingly, while certain market participants (most notably banks and publicly traded firms) may be subject to, for example, prudential banking requirements30 . and mark-to-market accounting rules31 . which tangentially impact upon their ability to utilise these instruments, OTC derivatives themselves have historically

Much ink has been spilled over whether fascism represented an emergency form of capitalism, a mechanism devised by capitalists by which the fascist state—their agent—disciplined the workforce in a way no traditional dictatorship could do. Today it is quite clear that businessmen often objected to specific aspects of fascist economic policies, sometimes with success. But fascist economic policy responded to political priorities, and not to economic rationale. Both Mussolini and Hitler tended to think that economics was amenable to a ruler’s will. Mussolini returned to the gold standard and revalued the lira at 90 to the British pound in December 1927 for reasons of national prestige, and over the objections of his own finance minister. Fascism was not the first choice of most businessmen, but most of them preferred it to the alternatives that seemed likely in the special conditions of 1922 and 1933—socialism or a dysfunctional market system. So they mostly acquiesced in the formation of a fascist regime and accommodated to its requirements of removing Jews from management and accepting onerous economic controls. In time, most German and Italian businessmen adapted well to working with fascist regimes, at least those gratified by the fruits of rearmament and labor discipline and the considerable role given to them in economic management. Mussolini’s famous corporatist economic organization, in particular, was run in practice by leading businessmen. Peter Hayes puts it succinctly: the Nazi regime and business had “converging but not identical interests.” Areas of agreement included disciplining workers, lucrative armaments contracts, and job-creation stimuli. Important areas of conflict involved government economic controls, limits on trade, and the high cost of autarky—the economic self-sufficiency by which the Nazis hoped to overcome the shortages that had lost Germany World War I. Autarky required costly substitutes—Ersatz— for such previously imported products as oil and rubber. Economic controls damaged smaller companies and those not involved in rearmament. Limits on trade created problems for companies that had formerly derived important profits from exports. The great chemical combine I. G. Farben is an excellent example: before 1933, Farben had prospered in international trade. After 1933, the company’s directors adapted to the regime’s autarky and learned to prosper mightily as the suppliers of German rearmament. The best example of the expense of import substitution was the Hermann Goering Werke, set up to make steel from the inferior ores and brown coal of Silesia. The steel manufacturers were forced to help finance this operation, to which they raised vigorous objections.

This would not solve all the problems, but it would be enough to improve the situation of the least skilled significantly.10 If the tax system is not made more progressive, it should come as no surprise that those who derive the least benefit from free trade may well turn against it. The progressive tax is indispensable for making sure that everyone benefits from globalization, and the increasingly glaring absence of progressive taxation may ultimately undermine support for a globalized economy.

In general, the value of a cryptocurrency is derived from its usefulness, frequency of use, and, eventually, demand, among other factors. Learning this will help you make good choices about which cryptocurrency coins you trade and invest in.