home.social

#financialisation — Public Fediverse posts

Live and recent posts from across the Fediverse tagged #financialisation, aggregated by home.social.

  1. The state of young Australians
    A crisis of social reproduction

    * “Many Australian children struggle with their mental health. Recent data shows around one in seven children (13.9%) aged 4–17 experiences a diagnosable mental illness.”

    “…We estimated that reducing factors such as parental psychological distress, hostile parenting and partner violence could potentially prevent up to 40% of severe and persistent mental health problems in young Australians.” >>
    theconversation.com/to-improve

    * Young Australians kept in the dark
    Australia’s social media ban preventing teenagers from accessing the news, research finds >>
    theguardian.com/australia-news

    * Sydney mum reveals the huge cost of the school run (Young people's socialisation into (car) dependency)
    "She would easily spend $170 a week on petrol, and drives between 80km and 90km often six or seven days a week, depending on what’s on. In 2024, the average household should budget between $10,000 and $25,000 a year to own car." >>
    drive.com.au/caradvice/scool-r
    #SocialReproduction #StateRetreat #CareDeficit #MentalHealth #anxiety #children #parenting #carers #family #DomesticViolence #violence #suburbia #sprawl #cars #MobilityDesign #CarDependency #work #WageStagnation #inequality #housing #instability #DoubleBurden #financialisation #outsourcing #SocialMedia #MSM #independence #citizens

  2. The state of young Australians
    A crisis of social reproduction

    * “Many Australian children struggle with their mental health. Recent data shows around one in seven children (13.9%) aged 4–17 experiences a diagnosable mental illness.”

    “…We estimated that reducing factors such as parental psychological distress, hostile parenting and partner violence could potentially prevent up to 40% of severe and persistent mental health problems in young Australians.” >>
    theconversation.com/to-improve

    * Young Australians kept in the dark
    Australia’s social media ban preventing teenagers from accessing the news, research finds >>
    theguardian.com/australia-news

    * Sydney mum reveals the huge cost of the school run (Young people's socialisation into (car) dependency)
    "She would easily spend $170 a week on petrol, and drives between 80km and 90km often six or seven days a week, depending on what’s on. In 2024, the average household should budget between $10,000 and $25,000 a year to own car." >>
    drive.com.au/caradvice/scool-r
    #SocialReproduction #StateRetreat #CareDeficit #MentalHealth #anxiety #children #parenting #carers #family #DomesticViolence #violence #suburbia #sprawl #cars #MobilityDesign #CarDependency #work #WageStagnation #inequality #housing #instability #DoubleBurden #financialisation #outsourcing #SocialMedia #MSM #independence #citizens

  3. The state of young Australians
    A crisis of social reproduction

    * “Many Australian children struggle with their mental health. Recent data shows around one in seven children (13.9%) aged 4–17 experiences a diagnosable mental illness.”

    “…We estimated that reducing factors such as parental psychological distress, hostile parenting and partner violence could potentially prevent up to 40% of severe and persistent mental health problems in young Australians.” >>
    theconversation.com/to-improve

    * Young Australians kept in the dark
    Australia’s social media ban preventing teenagers from accessing the news, research finds >>
    theguardian.com/australia-news

    * Sydney mum reveals the huge cost of the school run (Young people's socialisation into (car) dependency)
    "She would easily spend $170 a week on petrol, and drives between 80km and 90km often six or seven days a week, depending on what’s on. In 2024, the average household should budget between $10,000 and $25,000 a year to own car." >>
    drive.com.au/caradvice/scool-r
    #SocialReproduction #StateRetreat #CareDeficit #MentalHealth #anxiety #children #parenting #carers #family #DomesticViolence #violence #suburbia #sprawl #cars #MobilityDesign #CarDependency #work #WageStagnation #inequality #housing #instability #DoubleBurden #financialisation #outsourcing #SocialMedia #MSM #independence #citizens

  4. The state of young Australians
    A crisis of social reproduction

    * “Many Australian children struggle with their mental health. Recent data shows around one in seven children (13.9%) aged 4–17 experiences a diagnosable mental illness.”

    “…We estimated that reducing factors such as parental psychological distress, hostile parenting and partner violence could potentially prevent up to 40% of severe and persistent mental health problems in young Australians.” >>
    theconversation.com/to-improve

    * Young Australians kept in the dark
    Australia’s social media ban preventing teenagers from accessing the news, research finds >>
    theguardian.com/australia-news

    * Sydney mum reveals the huge cost of the school run (Young people's socialisation into (car) dependency)
    "She would easily spend $170 a week on petrol, and drives between 80km and 90km often six or seven days a week, depending on what’s on. In 2024, the average household should budget between $10,000 and $25,000 a year to own car." >>
    drive.com.au/caradvice/scool-r
    #SocialReproduction #StateRetreat #CareDeficit #MentalHealth #anxiety #children #parenting #carers #family #DomesticViolence #violence #suburbia #sprawl #cars #MobilityDesign #CarDependency #work #WageStagnation #inequality #housing #instability #DoubleBurden #financialisation #outsourcing #SocialMedia #MSM #independence #citizens

  5. The state of young Australians
    A crisis of social reproduction

    * “Many Australian children struggle with their mental health. Recent data shows around one in seven children (13.9%) aged 4–17 experiences a diagnosable mental illness.”

    “…We estimated that reducing factors such as parental psychological distress, hostile parenting and partner violence could potentially prevent up to 40% of severe and persistent mental health problems in young Australians.” >>
    theconversation.com/to-improve

    * Young Australians kept in the dark
    Australia’s social media ban preventing teenagers from accessing the news, research finds >>
    theguardian.com/australia-news

    * Sydney mum reveals the huge cost of the school run (Young people's socialisation into (car) dependency)
    "She would easily spend $170 a week on petrol, and drives between 80km and 90km often six or seven days a week, depending on what’s on. In 2024, the average household should budget between $10,000 and $25,000 a year to own car." >>
    drive.com.au/caradvice/scool-r
    #SocialReproduction #StateRetreat #CareDeficit #MentalHealth #anxiety #children #parenting #carers #family #DomesticViolence #violence #suburbia #sprawl #cars #MobilityDesign #CarDependency #work #WageStagnation #inequality #housing #instability #DoubleBurden #financialisation #outsourcing #SocialMedia #MSM #independence #citizens

  6. #CoryDoctorow has long been a TechCritic in constructive and humane sense. His neologism never fail to hit the nail on the head — such as his #enshitification which made it into the dictionary of many languages in one form or another. He has also been sounding the alarm bell on the #GenAISlop proliferation and its #financialisation while predicting that the #AIBubble will inevitable burst when financial markets can no longer justify the inflated valuation of the IA industry and its ancillary infrastructure. There is a quote in his latest bookk that I really like:

    “AI is the asbestos we are shoveling into the walls of our civilization and our descendants will be digging it out for generations…”

    Unfortunately, for many stupid reasons, this is where we’re at atm.

    pluralistic.net/2026/05/14/who

  7. #CoryDoctorow has long been a TechCritic in constructive and humane sense. His neologism never fail to hit the nail on the head — such as his #enshitification which made it into the dictionary of many languages in one form or another. He has also been sounding the alarm bell on the #GenAISlop proliferation and its #financialisation while predicting that the #AIBubble will inevitable burst when financial markets can no longer justify the inflated valuation of the IA industry and its ancillary infrastructure. There is a quote in his latest bookk that I really like:

    “AI is the asbestos we are shoveling into the walls of our civilization and our descendants will be digging it out for generations…”

    Unfortunately, for many stupid reasons, this is where we’re at atm.

    pluralistic.net/2026/05/14/who

  8. #CoryDoctorow has long been a TechCritic in constructive and humane sense. His neologism never fail to hit the nail on the head — such as his #enshitification which made it into the dictionary of many languages in one form or another. He has also been sounding the alarm bell on the #GenAISlop proliferation and its #financialisation while predicting that the #AIBubble will inevitable burst when financial markets can no longer justify the inflated valuation of the IA industry and its ancillary infrastructure. There is a quote in his latest bookk that I really like:

    “AI is the asbestos we are shoveling into the walls of our civilization and our descendants will be digging it out for generations…”

    Unfortunately, for many stupid reasons, this is where we’re at atm.

    pluralistic.net/2026/05/14/who

  9. #CoryDoctorow has long been a TechCritic in constructive and humane sense. His neologism never fail to hit the nail on the head — such as his #enshitification which made it into the dictionary of many languages in one form or another. He has also been sounding the alarm bell on the #GenAISlop proliferation and its #financialisation while predicting that the #AIBubble will inevitable burst when financial markets can no longer justify the inflated valuation of the IA industry and its ancillary infrastructure. There is a quote in his latest bookk that I really like:

    “AI is the asbestos we are shoveling into the walls of our civilization and our descendants will be digging it out for generations…”

    Unfortunately, for many stupid reasons, this is where we’re at atm.

    pluralistic.net/2026/05/14/who

  10. #CoryDoctorow has long been a TechCritic in constructive and humane sense. His neologism never fail to hit the nail on the head — such as his #enshitification which made it into the dictionary of many languages in one form or another. He has also been sounding the alarm bell on the #GenAISlop proliferation and its #financialisation while predicting that the #AIBubble will inevitable burst when financial markets can no longer justify the inflated valuation of the IA industry and its ancillary infrastructure. There is a quote in his latest bookk that I really like:

    “AI is the asbestos we are shoveling into the walls of our civilization and our descendants will be digging it out for generations…”

    Unfortunately, for many stupid reasons, this is where we’re at atm.

    pluralistic.net/2026/05/14/who

  11. @InsurgoFormica
    We’ve seen them come and go… what’s changed? Nada. I see real estate pricing fluctuation as market manipulation and insider trading… all of it is speculative and reserved for the rich.

    Remember that house ownership is a financialised asset that underwrites the banking system in Australia. Those assets cannot be allowed to lose value lest the system collapses. Fluctuations in value on the other hand allows for profit taking and buying on the down side if it is ‘managed’ within strict boundaries. Think of it as a sinewave along an ever increasing asset value. It’s fully rigged IMO.

    The answer: real social housing built and funded by public funds on a not for profit basis — sorry to say it will never happen kiddos.

    #HousingCrisis #SocialHousing #Financialisation #Capitalisation #AusPol

  12. @InsurgoFormica
    We’ve seen them come and go… what’s changed? Nada. I see real estate pricing fluctuation as market manipulation and insider trading… all of it is speculative and reserved for the rich.

    Remember that house ownership is a financialised asset that underwrites the banking system in Australia. Those assets cannot be allowed to lose value lest the system collapses. Fluctuations in value on the other hand allows for profit taking and buying on the down side if it is ‘managed’ within strict boundaries. Think of it as a sinewave along an ever increasing asset value. It’s fully rigged IMO.

    The answer: real social housing built and funded by public funds on a not for profit basis — sorry to say it will never happen kiddos.

    #HousingCrisis #SocialHousing #Financialisation #Capitalisation #AusPol

  13. @InsurgoFormica
    We’ve seen them come and go… what’s changed? Nada. I see real estate pricing fluctuation as market manipulation and insider trading… all of it is speculative and reserved for the rich.

    Remember that house ownership is a financialised asset that underwrites the banking system in Australia. Those assets cannot be allowed to lose value lest the system collapses. Fluctuations in value on the other hand allows for profit taking and buying on the down side if it is ‘managed’ within strict boundaries. Think of it as a sinewave along an ever increasing asset value. It’s fully rigged IMO.

    The answer: real social housing built and funded by public funds on a not for profit basis — sorry to say it will never happen kiddos.

    #HousingCrisis #SocialHousing #Financialisation #Capitalisation #AusPol

  14. @InsurgoFormica
    We’ve seen them come and go… what’s changed? Nada. I see real estate pricing fluctuation as market manipulation and insider trading… all of it is speculative and reserved for the rich.

    Remember that house ownership is a financialised asset that underwrites the banking system in Australia. Those assets cannot be allowed to lose value lest the system collapses. Fluctuations in value on the other hand allows for profit taking and buying on the down side if it is ‘managed’ within strict boundaries. Think of it as a sinewave along an ever increasing asset value. It’s fully rigged IMO.

    The answer: real social housing built and funded by public funds on a not for profit basis — sorry to say it will never happen kiddos.

    #HousingCrisis #SocialHousing #Financialisation #Capitalisation #AusPol

  15. @InsurgoFormica
    We’ve seen them come and go… what’s changed? Nada. I see real estate pricing fluctuation as market manipulation and insider trading… all of it is speculative and reserved for the rich.

    Remember that house ownership is a financialised asset that underwrites the banking system in Australia. Those assets cannot be allowed to lose value lest the system collapses. Fluctuations in value on the other hand allows for profit taking and buying on the down side if it is ‘managed’ within strict boundaries. Think of it as a sinewave along an ever increasing asset value. It’s fully rigged IMO.

    The answer: real social housing built and funded by public funds on a not for profit basis — sorry to say it will never happen kiddos.

    #HousingCrisis #SocialHousing #Financialisation #Capitalisation #AusPol

  16. A vast casino
    Casino capitalism taken further: speculative gambling on war and oil

    * “The Western financial system is rapidly coming to resemble nothing as much as a vast casino.” >>
    Strange, Susan. [1986] 1997. Casino Capitalism. Manchester, U.K.: Manchester University Press.
    manchesterhive.com/display/978

    * "The proliferation of online betting markets like Polymarket and Kalshi has allowed bets on virtually any news event, including the Iran war."

    “But many of them bear the hallmarks of suspicious trades that would naturally warrant investigation.”

    “It’s a wild west phase, when we’re talking about the prediction market industry, and now it’s spilled over into the stock market as well,." >>
    theguardian.com/world/2026/apr

    #CasinoCapitalism #deregulation #FinancialLandscape #risks #financialisation #UnregulatedExcesses #war #oil #regulation #UnfetteredGreed #WildWest #risks #crime #InsiderKnowledge

  17. A vast casino
    Casino capitalism taken further: speculative gambling on war and oil

    * “The Western financial system is rapidly coming to resemble nothing as much as a vast casino.” >>
    Strange, Susan. [1986] 1997. Casino Capitalism. Manchester, U.K.: Manchester University Press.
    manchesterhive.com/display/978

    * "The proliferation of online betting markets like Polymarket and Kalshi has allowed bets on virtually any news event, including the Iran war."

    “But many of them bear the hallmarks of suspicious trades that would naturally warrant investigation.”

    “It’s a wild west phase, when we’re talking about the prediction market industry, and now it’s spilled over into the stock market as well,." >>
    theguardian.com/world/2026/apr

    #CasinoCapitalism #deregulation #FinancialLandscape #risks #financialisation #UnregulatedExcesses #war #oil #regulation #UnfetteredGreed #WildWest #risks #crime #InsiderKnowledge

  18. A vast casino
    Casino capitalism taken further: speculative gambling on war and oil

    * “The Western financial system is rapidly coming to resemble nothing as much as a vast casino.” >>
    Strange, Susan. [1986] 1997. Casino Capitalism. Manchester, U.K.: Manchester University Press.
    manchesterhive.com/display/978

    * "The proliferation of online betting markets like Polymarket and Kalshi has allowed bets on virtually any news event, including the Iran war."

    “But many of them bear the hallmarks of suspicious trades that would naturally warrant investigation.”

    “It’s a wild west phase, when we’re talking about the prediction market industry, and now it’s spilled over into the stock market as well,." >>
    theguardian.com/world/2026/apr

    #CasinoCapitalism #deregulation #FinancialLandscape #risks #financialisation #UnregulatedExcesses #war #oil #regulation #UnfetteredGreed #WildWest #risks #crime #InsiderKnowledge

  19. A vast casino
    Casino capitalism taken further: speculative gambling on war and oil

    * “The Western financial system is rapidly coming to resemble nothing as much as a vast casino.” >>
    Strange, Susan. [1986] 1997. Casino Capitalism. Manchester, U.K.: Manchester University Press.
    manchesterhive.com/display/978

    * "The proliferation of online betting markets like Polymarket and Kalshi has allowed bets on virtually any news event, including the Iran war."

    “But many of them bear the hallmarks of suspicious trades that would naturally warrant investigation.”

    “It’s a wild west phase, when we’re talking about the prediction market industry, and now it’s spilled over into the stock market as well,." >>
    theguardian.com/world/2026/apr

    #CasinoCapitalism #deregulation #FinancialLandscape #risks #financialisation #UnregulatedExcesses #war #oil #regulation #UnfetteredGreed #WildWest #risks #crime #InsiderKnowledge

  20. A vast casino
    Casino capitalism taken further: speculative gambling on war and oil

    * “The Western financial system is rapidly coming to resemble nothing as much as a vast casino.” >>
    Strange, Susan. [1986] 1997. Casino Capitalism. Manchester, U.K.: Manchester University Press.
    manchesterhive.com/display/978

    * "The proliferation of online betting markets like Polymarket and Kalshi has allowed bets on virtually any news event, including the Iran war."

    “But many of them bear the hallmarks of suspicious trades that would naturally warrant investigation.”

    “It’s a wild west phase, when we’re talking about the prediction market industry, and now it’s spilled over into the stock market as well,." >>
    theguardian.com/world/2026/apr

    #CasinoCapitalism #deregulation #FinancialLandscape #risks #financialisation #UnregulatedExcesses #war #oil #regulation #UnfetteredGreed #WildWest #risks #crime #InsiderKnowledge

  21. Biodiversity Conservation: Agreement Relies on Controversial Financing Approaches

    "Relying on failed approaches such as REDD and biodiversity credits or advocating for the financing of forest protection through speculation on the capital market will only aggravate the biodiversity crisis."

    "Controversial financing instruments have gained importance in biodiversity conservation efforts since the Global Biodiversity Framework was adopted in 2022. Biodiversity certificates and nature conservation funds primarily generate their income on the capital market. But turning nature into an investment object will not stop the biodiversity crisis." >>
    boell.de/en/2026/02/03/global-
    #biodiversity #conservation #nativeForests #nature #extractivism #financialisation

  22. Biodiversity Conservation: Agreement Relies on Controversial Financing Approaches

    "Relying on failed approaches such as REDD and biodiversity credits or advocating for the financing of forest protection through speculation on the capital market will only aggravate the biodiversity crisis."

    "Controversial financing instruments have gained importance in biodiversity conservation efforts since the Global Biodiversity Framework was adopted in 2022. Biodiversity certificates and nature conservation funds primarily generate their income on the capital market. But turning nature into an investment object will not stop the biodiversity crisis." >>
    boell.de/en/2026/02/03/global-
    #biodiversity #conservation #nativeForests #nature #extractivism #financialisation

  23. Biodiversity Conservation: Agreement Relies on Controversial Financing Approaches

    "Relying on failed approaches such as REDD and biodiversity credits or advocating for the financing of forest protection through speculation on the capital market will only aggravate the biodiversity crisis."

    "Controversial financing instruments have gained importance in biodiversity conservation efforts since the Global Biodiversity Framework was adopted in 2022. Biodiversity certificates and nature conservation funds primarily generate their income on the capital market. But turning nature into an investment object will not stop the biodiversity crisis." >>
    boell.de/en/2026/02/03/global-
    #biodiversity #conservation #nativeForests #nature #extractivism #financialisation

  24. Biodiversity Conservation: Agreement Relies on Controversial Financing Approaches

    "Relying on failed approaches such as REDD and biodiversity credits or advocating for the financing of forest protection through speculation on the capital market will only aggravate the biodiversity crisis."

    "Controversial financing instruments have gained importance in biodiversity conservation efforts since the Global Biodiversity Framework was adopted in 2022. Biodiversity certificates and nature conservation funds primarily generate their income on the capital market. But turning nature into an investment object will not stop the biodiversity crisis." >>
    boell.de/en/2026/02/03/global-
    #biodiversity #conservation #nativeForests #nature #extractivism #financialisation

  25. Biodiversity Conservation: Agreement Relies on Controversial Financing Approaches

    "Relying on failed approaches such as REDD and biodiversity credits or advocating for the financing of forest protection through speculation on the capital market will only aggravate the biodiversity crisis."

    "Controversial financing instruments have gained importance in biodiversity conservation efforts since the Global Biodiversity Framework was adopted in 2022. Biodiversity certificates and nature conservation funds primarily generate their income on the capital market. But turning nature into an investment object will not stop the biodiversity crisis." >>
    boell.de/en/2026/02/03/global-
    #biodiversity #conservation #nativeForests #nature #extractivism #financialisation

  26. "Airbnb eating up long-term housing"

    First responders: Police, paramedics and firefighters (and essential workers and volunteers) are being forced to live well outside of town. >>
    abc.net.au/news/2025-12-07/fir
    #housing #rentierisation #financialisation #extractivism #NSW #Airbnb #cars #roads #traffic #emergency #access

  27. "Airbnb eating up long-term housing"

    First responders: Police, paramedics and firefighters (and essential workers and volunteers) are being forced to live well outside of town. >>
    abc.net.au/news/2025-12-07/fir
    #housing #rentierisation #financialisation #extractivism #NSW #Airbnb #cars #roads #traffic #emergency #access

  28. Insightful paper on the consequences of the rise of ultra-processed foods in our diet, both for public health and planetary health.

    What is the purpose of ultra-processed food? An exploratory analysis of the #financialisation of ultra-processed food #corporations and implications for public health

    "The findings of this study have several important implications for public health advocates, researchers, and policy-makers. Importantly, the operationalisation of ‘shareholder primacy’ by major UPF corporations undermines the claims made by these corporations that they are contributing to sustainable development, such as by ‘creating shared value’ or building sustainable economies. It is indeed very difficult to reconcile such claims with the ways in which the same corporations are transferring an increasing proportion of the money they generate through UPF sales, a large proportion of which comes from the income of lower-income households in high-income countries and citizens in low-and-middle countries, to shareholders and the ultimate owners of assets under management, a group over-represented by the wealthy in high-income countries"

    #UltraProcessedFoods
    #PublicHealth

    globalizationandhealth.biomedc

  29. #YanisVaroufakis: "Many refer to this world — the one in which #GenX grew up — as the #neoliberal era, others associate it with #globalisation, some identify it with #financialisation. It’s all the same thing — the world the #NixonShock begat and which the 2008 financial crash shook to its foundations. After the 2009 bailouts, although US hegemony continued unabated, it lost much of its dynamism. Today, the Nixon Shock has run out of steam — at least from the perspective of the Trumpists who want to give #UShegemony a second (or is it a third?) wind. This is the whole point of the #TrumpShock and its masterplan, including tactical moves such as enlisting #crypto to their cause."

    unherd.com/2025/04/will-libera

  30. OPEC, Petrodollars, and the 1980s Homeless Crisis (2017)

    ...What assets do, if those holding them have any say in the matter, is appreciate. After all, why not? You've already got the thing, all you need is for it to increase in value. One classic mechanism for which is to constrain the supply. And there are lots of ways to do that with housing: big lots, big houses, construction and zoning laws, lousy infrastructure (crime, schools, transportation). So that the limited supply that is attractive keeps getting bid up. That's one of the big changes. And it was happening like gangbusters in the 1970s and 1980s especially, and since.

    At the same time, a bunch of the upward-mobility-escalator stuff starts disappearing. Especially factory jobs, that let high-school (or less!) educated people, and especially males, earn a solid, high-income, and really fucking reliable income....

    A thinking-out-loud piece I'd written back on G+ (hence the IA link), on how homelessness kicked off bigtimes in the US in the late 1970s / early 1980s, perhaps as housing became financialised due to A Combination Of Many Things.

    Stumbled across this looking for other things (as one does) and thought it might be of interest to others.

    web.archive.org/web/2019011503

    HN discussion: news.ycombinator.com/item?id=4

    #housing #homelessness #financialisation #finaicialization #opec #petrodollars #AssetInflation

  31. Another aspect of debt,
    considered as an information technology,
    is that if affects the information environment of the borrower.

    If you are managing a company which has borrowed money,
    making your payments becomes one of the survival conditions for that company.

    At low levels of debt, generating short term cash flow is one priority among others,
    but for a highly indebted company it becomes a signal which swamps all others.

    You might want to change the world, but if you don’t meet the coupon payments, you’ll never get the chance to see if your other strategic priorities would have worked.

    Consequently, a company with lots of debt cannot help but have a bias toward the short term.

    Which might be considered problematic,
    as the last few decades in the Western capitalist world have seen the rise of an industry
    (leveraged buyouts, or “private equity”)

    which has made it part of its fundamental operating strategy to load companies up with debt.

    Considered in this light, debt is a technology of control as well as of information
    – it’s a means of exerting discipline on management teams who might otherwise be tempted to follow priorities other than short-term financial returns.

    This is, as far as I can tell, the real meaning behind the populist critiques of “#financialisation” in the economy.

    There’s really nothing particularly bad about the growth of the financial sector,
    even to the extent that it’s outstripped the growth of the “real” economy.

    Quite simple mathematics ought to be enough to convince us that as the economy grows,
    the number of links and relationships between producers, consumers and investors will grow at a faster rate,
    and so you’d expect the parts of the economy in which decision making and information processing take place to grow faster than the “real” economy.

    It’s the same logic by which the brains of primates take up proportionally more energy than those of rodents;

    finance is part of the real economy, just like the cerebellum is a real organ.

    What’s bad about “financialisation” is neither more nor less than the over-use of debt.

    Modern corporations do often behave badly,
    and they make systematically worse decisions than they used to,
    this isn’t a delusion of age.

    They do this partly because they have outsourced key functions
    (cutting themselves off from important sources of information),

    and partly because their priorities are warped by the need to generate short term cash flow.

    Both of these problems can in large part be traced back to the private equity industry,
    working either as a direct driver of excess leverage,
    or as a constant threat which makes managers behave as if they were already subject to its discipline.

    #Management #science and #cybernetic #history is all about things which began as solutions,
    💥then turned into problems because the world changed.

    Once upon a time, back in the 1970s,
    private equity and LBOs were the solution to a problem of lazy, sclerotic incumbent management teams,
    self-dealing and failing to make tough decisions.

    But it’s now the 2020s, and private equity may itself be the biggest problem in our global information processing system.

    The way that corporate history progresses is that we try to keep up with the ever-increasing complexity of the world,
    ♦️and then when this is no longer possible, we have a crisis and reorganise.

    We’ve had the crisis
    – or perhaps we are still going through it
    – and now it’s time to think about how to reorganise.

    (3/3)

    amazon.com/stores/Dan-Davies/a

    #debt #information #technology #criminogenic #organisation #Stafford #Beer #Barry #Clemson #accountability #sink #Boeing #737MAX #Boeing #merger #McDonnell #Douglas #engineering #culture #cost #control #Ricardian #Fallacy #hard #data #culture #best #practice

  32. Another aspect of debt,
    considered as an information technology,
    is that if affects the information environment of the borrower.

    If you are managing a company which has borrowed money,
    making your payments becomes one of the survival conditions for that company.

    At low levels of debt, generating short term cash flow is one priority among others,
    but for a highly indebted company it becomes a signal which swamps all others.

    You might want to change the world, but if you don’t meet the coupon payments, you’ll never get the chance to see if your other strategic priorities would have worked.

    Consequently, a company with lots of debt cannot help but have a bias toward the short term.

    Which might be considered problematic,
    as the last few decades in the Western capitalist world have seen the rise of an industry
    (leveraged buyouts, or “private equity”)

    which has made it part of its fundamental operating strategy to load companies up with debt.

    Considered in this light, debt is a technology of control as well as of information
    – it’s a means of exerting discipline on management teams who might otherwise be tempted to follow priorities other than short-term financial returns.

    This is, as far as I can tell, the real meaning behind the populist critiques of “#financialisation” in the economy.

    There’s really nothing particularly bad about the growth of the financial sector,
    even to the extent that it’s outstripped the growth of the “real” economy.

    Quite simple mathematics ought to be enough to convince us that as the economy grows,
    the number of links and relationships between producers, consumers and investors will grow at a faster rate,
    and so you’d expect the parts of the economy in which decision making and information processing take place to grow faster than the “real” economy.

    It’s the same logic by which the brains of primates take up proportionally more energy than those of rodents;

    finance is part of the real economy, just like the cerebellum is a real organ.

    What’s bad about “financialisation” is neither more nor less than the over-use of debt.

    Modern corporations do often behave badly,
    and they make systematically worse decisions than they used to,
    this isn’t a delusion of age.

    They do this partly because they have outsourced key functions
    (cutting themselves off from important sources of information),

    and partly because their priorities are warped by the need to generate short term cash flow.

    Both of these problems can in large part be traced back to the private equity industry,
    working either as a direct driver of excess leverage,
    or as a constant threat which makes managers behave as if they were already subject to its discipline.

    #Management #science and #cybernetic #history is all about things which began as solutions,
    💥then turned into problems because the world changed.

    Once upon a time, back in the 1970s,
    private equity and LBOs were the solution to a problem of lazy, sclerotic incumbent management teams,
    self-dealing and failing to make tough decisions.

    But it’s now the 2020s, and private equity may itself be the biggest problem in our global information processing system.

    The way that corporate history progresses is that we try to keep up with the ever-increasing complexity of the world,
    ♦️and then when this is no longer possible, we have a crisis and reorganise.

    We’ve had the crisis
    – or perhaps we are still going through it
    – and now it’s time to think about how to reorganise.

    (3/3)

    amazon.com/stores/Dan-Davies/a

    #debt #information #technology #criminogenic #organisation #Stafford #Beer #Barry #Clemson #accountability #sink #Boeing #737MAX #Boeing #merger #McDonnell #Douglas #engineering #culture #cost #control #Ricardian #Fallacy #hard #data #culture #best #practice

  33. Another aspect of debt,
    considered as an information technology,
    is that if affects the information environment of the borrower.

    If you are managing a company which has borrowed money,
    making your payments becomes one of the survival conditions for that company.

    At low levels of debt, generating short term cash flow is one priority among others,
    but for a highly indebted company it becomes a signal which swamps all others.

    You might want to change the world, but if you don’t meet the coupon payments, you’ll never get the chance to see if your other strategic priorities would have worked.

    Consequently, a company with lots of debt cannot help but have a bias toward the short term.

    Which might be considered problematic,
    as the last few decades in the Western capitalist world have seen the rise of an industry
    (leveraged buyouts, or “private equity”)

    which has made it part of its fundamental operating strategy to load companies up with debt.

    Considered in this light, debt is a technology of control as well as of information
    – it’s a means of exerting discipline on management teams who might otherwise be tempted to follow priorities other than short-term financial returns.

    This is, as far as I can tell, the real meaning behind the populist critiques of “#financialisation” in the economy.

    There’s really nothing particularly bad about the growth of the financial sector,
    even to the extent that it’s outstripped the growth of the “real” economy.

    Quite simple mathematics ought to be enough to convince us that as the economy grows,
    the number of links and relationships between producers, consumers and investors will grow at a faster rate,
    and so you’d expect the parts of the economy in which decision making and information processing take place to grow faster than the “real” economy.

    It’s the same logic by which the brains of primates take up proportionally more energy than those of rodents;

    finance is part of the real economy, just like the cerebellum is a real organ.

    What’s bad about “financialisation” is neither more nor less than the over-use of debt.

    Modern corporations do often behave badly,
    and they make systematically worse decisions than they used to,
    this isn’t a delusion of age.

    They do this partly because they have outsourced key functions
    (cutting themselves off from important sources of information),

    and partly because their priorities are warped by the need to generate short term cash flow.

    Both of these problems can in large part be traced back to the private equity industry,
    working either as a direct driver of excess leverage,
    or as a constant threat which makes managers behave as if they were already subject to its discipline.

    #Management #science and #cybernetic #history is all about things which began as solutions,
    💥then turned into problems because the world changed.

    Once upon a time, back in the 1970s,
    private equity and LBOs were the solution to a problem of lazy, sclerotic incumbent management teams,
    self-dealing and failing to make tough decisions.

    But it’s now the 2020s, and private equity may itself be the biggest problem in our global information processing system.

    The way that corporate history progresses is that we try to keep up with the ever-increasing complexity of the world,
    ♦️and then when this is no longer possible, we have a crisis and reorganise.

    We’ve had the crisis
    – or perhaps we are still going through it
    – and now it’s time to think about how to reorganise.

    (3/3)

    amazon.com/stores/Dan-Davies/a

    #debt #information #technology #criminogenic #organisation #Stafford #Beer #Barry #Clemson #accountability #sink #Boeing #737MAX #Boeing #merger #McDonnell #Douglas #engineering #culture #cost #control #Ricardian #Fallacy #hard #data #culture #best #practice

  34. Another aspect of debt,
    considered as an information technology,
    is that if affects the information environment of the borrower.

    If you are managing a company which has borrowed money,
    making your payments becomes one of the survival conditions for that company.

    At low levels of debt, generating short term cash flow is one priority among others,
    but for a highly indebted company it becomes a signal which swamps all others.

    You might want to change the world, but if you don’t meet the coupon payments, you’ll never get the chance to see if your other strategic priorities would have worked.

    Consequently, a company with lots of debt cannot help but have a bias toward the short term.

    Which might be considered problematic,
    as the last few decades in the Western capitalist world have seen the rise of an industry
    (leveraged buyouts, or “private equity”)

    which has made it part of its fundamental operating strategy to load companies up with debt.

    Considered in this light, debt is a technology of control as well as of information
    – it’s a means of exerting discipline on management teams who might otherwise be tempted to follow priorities other than short-term financial returns.

    This is, as far as I can tell, the real meaning behind the populist critiques of “#financialisation” in the economy.

    There’s really nothing particularly bad about the growth of the financial sector,
    even to the extent that it’s outstripped the growth of the “real” economy.

    Quite simple mathematics ought to be enough to convince us that as the economy grows,
    the number of links and relationships between producers, consumers and investors will grow at a faster rate,
    and so you’d expect the parts of the economy in which decision making and information processing take place to grow faster than the “real” economy.

    It’s the same logic by which the brains of primates take up proportionally more energy than those of rodents;

    finance is part of the real economy, just like the cerebellum is a real organ.

    What’s bad about “financialisation” is neither more nor less than the over-use of debt.

    Modern corporations do often behave badly,
    and they make systematically worse decisions than they used to,
    this isn’t a delusion of age.

    They do this partly because they have outsourced key functions
    (cutting themselves off from important sources of information),

    and partly because their priorities are warped by the need to generate short term cash flow.

    Both of these problems can in large part be traced back to the private equity industry,
    working either as a direct driver of excess leverage,
    or as a constant threat which makes managers behave as if they were already subject to its discipline.

    #Management #science and #cybernetic #history is all about things which began as solutions,
    💥then turned into problems because the world changed.

    Once upon a time, back in the 1970s,
    private equity and LBOs were the solution to a problem of lazy, sclerotic incumbent management teams,
    self-dealing and failing to make tough decisions.

    But it’s now the 2020s, and private equity may itself be the biggest problem in our global information processing system.

    The way that corporate history progresses is that we try to keep up with the ever-increasing complexity of the world,
    ♦️and then when this is no longer possible, we have a crisis and reorganise.

    We’ve had the crisis
    – or perhaps we are still going through it
    – and now it’s time to think about how to reorganise.

    (3/3)

    amazon.com/stores/Dan-Davies/a

    #debt #information #technology #criminogenic #organisation #Stafford #Beer #Barry #Clemson #accountability #sink #Boeing #737MAX #Boeing #merger #McDonnell #Douglas #engineering #culture #cost #control #Ricardian #Fallacy #hard #data #culture #best #practice