β - The Economic Consequences of the Peace.

April 12, 2010 - PRLog -- ♤ iHBSC ω - ي א ℠, is a not for profit mutual insurance corporation, which provides its share holders catastrophic financial coverage, against a low probability event, namely a future market crash, one of those rare, once in a millennium or half-millennium events. It has far reaching sociological, political, and military consequences.

Much as we might wish otherwise, policy makers cannot reliably anticipate financial or economic shocks or the consequences of economic imbalances. Financial crises are characterised by discontinuous breaks in market pricing the timing of which by definition must be unanticipated - if people see them coming, then the markets arbitrage them away. It will probably take place some time before Friday 21st, December, 2012 at 12:00 PM.

I can mitigate, if not avoid completely, its consequences for my share holders. To the best of my knowledge no one else is yet claiming to cover such a risk. I have worked on this model since the spring of 1994 so it would be a real surprise to me if anyone came up with a solution to insure a systemic risk they didn't even foresee in a much shorter time. Should one arise I expect that we have a sufficient competitive advantage given our business model. For all intent and purposes, in providing that service I have no competition.

On the other side, and it is one of my working hypothesis, if, after a major catastrophe, out of nowhere, some providential yet invisible hand came at my rescue, I will be very suspicious regarding its ulterior motives.


"In one of the greatest investment markets in the world, namely, New York, the influence of speculation (in the above sense) is enormous. Even outside the field of finance, Americans are apt to be unduly interested in discovering what average opinion believes average opinion to be; and this national weakness finds its nemesis in the stock market."

John Maynard Keynes
The General Theory of Employment, Interest, and Money
Chapter 12, The State of Long-Term Expectation, VI.
Friday, December 13^tn, 1935


My  ultimate objective is to establish a mean to freely exchange goods and services.

I enforce a strict policy of non discrimination.

The purpose of my Blog is to explain the main features of our system.

   > Economic Strategy for People of the Same Trade.
   > Electronic Information System in the Cloud.
   > Public Relation Strategy and Viral Propagation.
   > Work Organisation for Public Servants.
   > Portfolio Management Strategy and Insider Trading.
   ...

Those who have no previous background in these domains can profitably skip the part which is foreign to them. I am making every effort to gather feed back from my audience and takes into account the critics.

Yet the cure lies outside the operations of individuals; it may even be to the interest of individuals to aggravate the disease. I believe that the cure for these things is partly to be sought in the deliberate control of the currency and of credit by a central institution, and partly in the collection and dissemination on a great scale of data relating to the business situation…

These measures would involve Society in exercising directive intelligence through some appropriate organ of action over many of the inner intricacies of private business, yet it would leave private initiative unhindered.. Devotees of Capitalism are often unduly conservative, and reject reforms in its technique, which might really strengthen and preserve it, for fear that they may prove to be first steps away from Capitalism itself.... For my part, I think that Capitalism, wisely managed, can probably be made more efficient for attaining economic ends than any alternative system yet in sight, but that in itself it is in many ways extremely objectionable. Our problem is to work out a social organization which shall be efficient as possible without offending our notions of a satisfactory way of life.

I know you believe you understand what you think I said, but I am not sure you realise that what you heard is not what I mean.

http://www.youtube.com/watch?v=uZUXXSxZPhw



http://no-w.com I Want MO Money.

# # #

a not for profit mutual insurance corporation, which provides its share holders catastrophic financial coverage, against a low probability event, namely a future market crash, It has far reaching sociological, political, and military consequences.

Much as we might wish otherwise, policy makers cannot reliably anticipate financial or economic shocks or the consequences of economic imbalances. Financial crises are characterised by discontinuous breaks in market pricing the timing of which by definition must be unanticipated - if people see them coming, then the markets arbitrage them away. it will probably take place some time before Friday 21st, December, 2012 at 12:00 PM.