Suicidal Markets and The Death of Innovation
I just heard that someone jumped off the Sail earlier today and that it could be a gold trader.
It is a tragedy if it is true but not the first time for bankers here. Someone drank antifreeze or bleach in a hotel room just a few years back during the financial crisis.
Whilst we do not know the reason for her action at the moment, we should perhaps just reflect on our intended purpose on this earth.
God knows I would be close to suicide many times with the frustrations that I deal with. But I end up learning powerful lessons, the latest being that plain-looking/unattractive people may not have a beautiful heart !
That aside.
I was reading some interesting tweets on Twitter the other day and a particular one struck me as rather portentous.
A young man was lamenting that the best brains of his generation are all devoted to the venture of maximising web clicks and being paid exorbitant sums to do so.
I asked myself, if brain powers are deployed to such ends, I suppose there must be less allocated to innovations that are beneficial to humankind.
But we cannot blame them.
This is a golden age indeed with the world never having as many graduates and brain power, all seeking the same level of success that their forebears enjoyed.
This article was sent to me by Retired Trader earlier which echoes the woes of many young Singaporeans I speak to. Singaporeans who are earnest and willing but who may change once they have tasted success.
All I know is this.
I always wondered why bankers made so much money although I was not anywhere near the highest paid ones. And yet, it is the engineers and architects that build the buildings (that could collapse) and doctors who have to save lives and pilots who fly the planes and scientists who have to discover the bird-flu vaccine.
The new world order is the IT geeks who will rule.
Goldman Traders Cede Tokyo Party Bar to Google-Apple Invasion
What a strange world we live in now.
Who wants to be a banker these days ?
Just look at the change in prices below ? Might as well be on the frontlines in Afghanistan or Syria.
God rest her soul !
Saw the body bag and the police from across the street. A great pity, may she R.I.P. Life is precious – it’s a reminder not to take things too seriously and there’d always be another path, another way out.
Perhaps some parts of the banking sector is losing its relevance. As much as I would love my kids to look up to their father, I’d rather not emphasize the persona of a “banker”.
I thought there are opportunities for innovation in every avenue – finance sector included. Advancement in web technologies may provide the adaptative tools needed to evolve the sector. One such process innovation that has taken root elsewhere is peer to peer lending – could there be a prospect for that here?
Hi Altfin,
You really think so ? Not when a 16 y.o. gets bought out by Yahoo for 30 million.
My son is into Rooster Teeth. It’s nothing but a silly bunch of guys with millions of followers, making corny, slapstick videos on You Tube. And the Primary 6 cohort is addicted to videos of people playing games, with commentary.
Innovation aplenty, with Blackrock’s latest B 2 B platform for bonds because banks want to get around Basel 3 and Dodd Frank. It’s all about getting around the rules to maximize so called profits. In that case, accountants should be the most valuable assets. 1 accounting entry and a country can skip a recession. Don’t ask how I know but Trade and gdp numbers sometimes to do tie in with contracts that certain companies report.
Don’t mean to be cynical now that another life has been purportedly lost.
Thanks for your comment, now lets try to make a small difference while we are alive.
Gen X rocks !! (Assuming you are one)
Hey tradehaven,
Sure, there are tons of unproductive innovations. We all know about those that brought wreckage to the financial system during the last crisis.
But I thought perhaps let’s not subject all innovations to radiotherapy and risk killing off the good ones, because ultimately, we remain the final arbiter of how useful they would eventually be. My toddlers haven’t yet advanced to Rooster Teeth, so I haven’t a clue of what it is, but reading your description, I can appreciate your apprehension.
A short quip about Basel 3 and Dodd Frank. Politics aside, I am not entirely convinced these regulations were founded on strong economic or legal fundamentals. Scholars are only beginning to examine the concept of Benefit-Cost Analysis for Financial Regulation (in a recent article by Eric Posner of U Chicago Law). So, it may be premature to judge the efficacy of the resulting Blackrock innovation. Incidentally, there’s been a deliberated post on Bank Capital after the Global Financial Crisis: “Collateral Damage” for SMEs {http://tinyurl.com/cnsd59l}
I resonate and admire with your motivation to make a difference. Again, I’d like to ernestly state the contribution you are making with this blog. It is differentiated and addresses an important gap in the local investment fraternity.
Might you also be behind bondhaven? I thought those are excellent materials too.
Good job! Fellow Gen-Xer!
Haha. You like Bondhaven too ? It was my pet project last year. Unfortunately, I had to take a break from it and work on this blog first.
Will be merging the 2 soon to have a more complete website.
Looking forward to your contributions and comments !!
Dodd Frank will be hitting our shores soon and our local version of it to come.
Ugly days ahead for banking.
That is why I cannot fathom why investors still have so much faith in the products that banks push.
I know so many honest fund managers and hedge funds who are trying to make a living but are slighted by the private banks who choose to market their own funds and products which may not be the most appropriate.