Comments on: Our Wonderful Financial Sector: Alchemy + Gotcha Capitalism http://www.concurringopinions.com/archives/2008/12/financial_innov.html The Law, the Universe, and Everything Sun, 21 Mar 2010 00:22:12 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: joe http://www.concurringopinions.com/archives/2008/12/financial_innov.html/comment-page-1#comment-45800 joe Thu, 25 Dec 2008 11:39:38 +0000 http://www.solove.org/archives/2008/12/our-wonderful-financial-sector-alchemy-gotcha-capitalism.html#comment-45800 <a href="http://www.tradersaffiliates.com/" rel="nofollow">stock Market Timing Strategies </a> -S&P and Nasdaq index fund traders and index fund timers, plus Bond and Gold timing strategies. stock Market Timing Strategies -S&P and Nasdaq index fund traders and index fund timers, plus Bond and Gold timing strategies.

]]> By: A.J. Sutter http://www.concurringopinions.com/archives/2008/12/financial_innov.html/comment-page-1#comment-45799 A.J. Sutter Wed, 03 Dec 2008 05:14:21 +0000 http://www.solove.org/archives/2008/12/our-wonderful-financial-sector-alchemy-gotcha-capitalism.html#comment-45799 1. Venture capitalists (of the VC fund variety) have their own variety of self-serving mishugas. Relatively few of them take any interest in making sure a portfolio company can survive long after they exit. The goal of most VCs is (i) to earn money from fund management fees, (ii) in the case of IPO exits, to sell a story to Wall Street that will keep the price high for a couple months until the VCs can liquidate their holdings of restricted shares, and (iii) in the case of M&A exits, to persuade some acquirer that the start-up really is a strategic fit, which often means focusing on the buyer's insecurity that it's somehow "behind the curve" in the relevant technology or service. Corporate VC sometimes has somewhat different motivations, but in those cases the corporate investor's goals will usually be in conflict with the above-mentioned objectives of the fund managers (been there). Having a longer time horizon doesn't necessarily mean VCs' motivations are "purer". 2. I am surprised at your smug dismissal of software's need for a day off. If an artificially intelligent agent is intelligent nonetheless, why shouldn't it recreate? Just as the "virtual" economy is so much larger than the "real" economy, aren't your prejudices in favor of flesh-and-blood intelligences a bit outdated? To say nothing of your species-ism in belittling financial instruments structured by cows. Just like that pioneering Wall Streeter you quote, if a bunch of cows presented me with a deal proposal, I'd surely read it with great interest. 1. Venture capitalists (of the VC fund variety) have their own variety of self-serving mishugas. Relatively few of them take any interest in making sure a portfolio company can survive long after they exit. The goal of most VCs is (i) to earn money from fund management fees, (ii) in the case of IPO exits, to sell a story to Wall Street that will keep the price high for a couple months until the VCs can liquidate their holdings of restricted shares, and (iii) in the case of M&A exits, to persuade some acquirer that the start-up really is a strategic fit, which often means focusing on the buyer’s insecurity that it’s somehow “behind the curve” in the relevant technology or service. Corporate VC sometimes has somewhat different motivations, but in those cases the corporate investor’s goals will usually be in conflict with the above-mentioned objectives of the fund managers (been there). Having a longer time horizon doesn’t necessarily mean VCs’ motivations are “purer”.

2. I am surprised at your smug dismissal of software’s need for a day off. If an artificially intelligent agent is intelligent nonetheless, why shouldn’t it recreate? Just as the “virtual” economy is so much larger than the “real” economy, aren’t your prejudices in favor of flesh-and-blood intelligences a bit outdated? To say nothing of your species-ism in belittling financial instruments structured by cows. Just like that pioneering Wall Streeter you quote, if a bunch of cows presented me with a deal proposal, I’d surely read it with great interest.

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