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disintermedation Last updated on March 20,
1999
User
wiredbrain password synergy
http://www.techweb.com/investor/feed/stockRes.cgi
dailystocks
most excellent information
The
report
illustrates just how dominant the computer sector of the economy
has become as technology has become increasingly advanced. .. For example,
the study found that the average wages of those who provide high-tech services
are, in Kazmierczak's words, "phenomenal," with high-tech employees earning
73 percent more, on average, than private-sector employees. Providers of
software services in particular, he said, are finding current economic
trends to be extremely favorable.Ericsson
Hosting Internet & Wideband Wireless Conference
Two-Day San Francisco Event
Includes Internet Partners Discussing
Convergence
Strategies third-Generation Wideband Wireless Multimedia mobile systems.
This technology, to debut in some world regions in
the year 2000, will enable wireless phones/terminals to deliver not only
voice, but also full-motion video, and data-intensive information such
as real-time Internet access.
There is somewhere around
a 37 Trillion Gross Global Product (GGP see
futures.htm
) and somewhere around the same amount in capital. Large pools of capital
have built up in banks, insurance companies, pension funds, corporate treasuries,
and in personal savings. About 10 % or 4 trillion dollars is relatively
liquid and under "professional management". Most of these funds seek safe
reasonable returns in public and private bonds, stocks, real estate and
direct commercial investments. Any one of the global markets can be looked
at as a commodity and blocks of stocks bought and sold in bulk. Now comes
the hard part.
Since various investment
packages of stocks and bonds, in various currencies, can be looked at for
their relative return and risk, options can be bought and sold to cover
the risk. Since 75 % of the capital of US stocks are in the S&P 500,
future options ( puts and calls) can limit the risk of these investments,
currency options protect the relative value of the US dollar and interest
rate futures the value of bonds. Since billions of dollars can be traded
in seconds the goal is to move fast and freely across markets to get the
best returns and defend against loss of capital.
The synergy of this global
system ( the whole is more than the sum of the parts ) create some complex
interactions described as
Dissipative
Structures.
These patterns of non-linear
forms created in systems
far from equilibrium such as Benard cells, tornados,
lasers and living things
such as the U.S. Congress. ( Llya Prigogine). While global trade in stocks
and bonds as commodities has created vast pools of liquid capital it can
become unstable as it has in South East Asia and have a ripple effect around
the world. No central bank can control or even understand what is going
on. A single trader can cause the loss of billions, the fall of whole banks
or investment pools.To understand the impact
of large institutional trans-market trading one has to penetrate the logic
of their strategies. (
AltaVista
Search ) Part of the strategy is reflective of what other players are
doing. It this sense it becomes a game. Fractional differences in exchange
rates, interest rates and stock prices set the game in motion. Secondary
players such as mutual fund managers, stock brokers, and third level investors
are often caught in the winds of global financial forces they can't understand.