"Hot money seeks out the conscious mispricing of risk. Capital, in the form of both money and personal talent, increasingly flows into malinvestment and the gaming of markets.
The productive economy languishes, left wanting for the lack of creative resources and attention. The bubble rises to unsustainable valuations— and fails, and a nation's capital is consumed."
Jesse, 5 August 2019
"'The markets used to be about capital formation,' said Mr. Quast, the consultant. 'Now 80 percent of trading is driven by some form of statistical arbitrage. We are buying into a statistical house of cards that could unravel very quickly.'”
Landon Thomas, Inquiry Stokes Concern over Trading Firms that Shape Markets, 3 September 2009
“They were careless people, Tom and Daisy — they smashed up things and creatures and then retreated back into their money or their vast carelessness, or whatever it was that kept them together, and let other people clean up the mess they had made.”
F. Scott Fitzgerald, The Great Gatsby
“It is better to be a child of God than king of the whole world.”
Aloysius Gonzaga
And it is.
Non-Farm Payrolls Report tomorrow.
Have a pleasant evening.
