LOONY TUNES no. 153

1

Jeff Guo (The Washington Post) in MY PALM BEACH POST (19 JULY) HERE 

“The clearest proof yet that your job is killing you”

“In this case, we can blame (or thank) the invisible hand for doing the dirty work. The more or less random fluctuations in foreign economies provided an opportunity to observe what happens when people suddenly get a lot busier at work. Though this study focused on the Danish manufacturing sector, it covered both blue and white collar workers, so the results seem generalizable enough: Working too hard has health consequences. Our jobs really are killing us.”

2

Shane Obata (Rochardson GMP) posts (19 July) on SEE IT Market HERE

Higher Oil Prices Trigger Oil Production Increase”

“An interesting thing happened this week, total oil production rose for just the third time this year. The +0.68% oil production increase was the largest increase since last October. It’s not all that surprising; it’s simple economics. Higher prices begets greater supply.”

“We’ve colloquially referred to this relationship as the “Ws”. Where oil prices will establish firmer upper and lower bounds and will trade within these newly established ranges. Rising oil supply will tilt the balance of the demand/supply dynamic and prices will likely fall in response. We’ve already begun to see this.

It’s the invisible hand at work. In our chart of the week, we’ve plotted U.S. oil rig counts which began to tick higher at the end of May, when crude approached $50/bbl. Over the past six weeks, the rig count has risen 10%.” [GK: My emphasis]

COMMENT

The first paragraph above states a simple experience of markets known for centuries: “Higher prices begets greater supply.” [!!!]

Then the killer obfuscation misusing the nonsensical so-called  “invisible hand”: “It’s the invisible hand at work.” Graciously, we are spared the usual nonsense about it being an idea from Adam Smith.

3

Andrew Quentson posts (  July) on  CNN.LA HERE

“The invisible hand of the market as indicated by the price may keep even dishonest actors in check, but the distortion of balance may lead to mistakes which gradually and slowly incentivizes a brain and capital drain to other blockchains, potentially leading to eventual decay.”

Comment 

Markets work by VISIBLE prices. What possible role is there for “an INVISIBLE hand” metaphor?