Quote Originally Posted by zihowie
so you want to have some booze, solve the world's economic problem then go get stoned in amsterdam and come up with some more crazy shit?
Cannabis is not an aggressive inducing drug, it simply lacks that property. In talks such as these, a keen sense of aggressiveness is paramount to alleviating status quo.

Nobody will take the person, who is speaking softly and allowing their opposition to assume consequents/antecedents unchecked, seriously. So having a drink or two or three (whatever your size) can be beneficial. I say can, because coming off as a sloshed prick will get you nowhere.

While blazed, i came up with a system (although a bit chaotic at this stage) to allow mark to market accounting standards to lax during times of deflation, and to a certain extent, recessions/depressions. You peg the mark to market resultant through a two (early idea so more will need to be encompassed) variable function dependent on inflation and real change in monthly GDP.

Meaning, when times are bad, a greater proportion of your "assets" can be weighted in mark to model practices, while the majority is kept to market (assuming inflation/deflation does not exceed 50%). This creates a two fold consequence. It alleviates pain during times of recession or eventual recession, while limiting (reducing) asset value in accordance to times of great expansion. During periods of "high return" (no pun intended), risk aversion practices actually diminish when it is important to note that profit taking could trigger a price drop (investment instruments) at any time.

Going back to post WWII, the majority of all people do what is exactly counterproductive, when investing. When prices fall, people sell out (to avoid further loss) and when prices are high (seeing other make money) people buy in.

Therefore an exponentially compounding correction eventually takes place, as debt is issued at a higher proportion during price peaks. Reducing the potential loan based assets "mark" during higher prices also reduces the proportional amount of margin allowed. Deleveraging would not be nearly as painful.

Of course, this greatly reduces the power of hedge funds and ultra high asset classes to manipulate the market (short selling in hordes).