Corpania Ideas

CAVEAT! I'm an amateur philosopher and idea-generator. I am NOT an investment professional. Don't take any of my advice before consulting with an attorney and also a duly licensed authority on finance. Seriously, this my personal blog of random ideas only for entertainment purposes. Don't be an idiot.

Tuesday, December 20, 2016

How to Name Virtually Any Business (or Movie Title):

FWIW - Here are my semi-secret "rules" of naming virtually any business (or movie title):

1) Unless you're "ambush marketing", your name/title must be uniquely Google-able (or IMDb-able for film titles) for customers' searches and trademark issues. This normally means you've got to register the ".com" domain cleanly otherwise you should probably pick something else.

2) The name should have as few syllables as possible - otherwise it'll be shortened, initial-ized, or acronym-ed which will then function as the true name (see FedEx). Also note: domains with more letters tend to lose/miss more customers.

3) It should be easily spelled so as not to confuse customers (otherwise you should register domains for ALL the alternate/incorrect spellings and have them redirect to the main/correct one).

4) It shouldn't have any negative connotations (even in other languages).

5) It should have positive and, ideally, descriptive connotations (but not too generically descriptive for fear of losing trademark protection).

And here's my previously secret step-by-step recipe/strategy for naming:

a) Brainstorm a big list of "ingredients" words that have anything to do with your product/film. Focus on nouns but accept anything that pops in your head. If you don't have at least 50 then keep going.

b) Then expand that big list by seeking those words' synonyms and related words (and for films especially seek out idioms, common phrases, and memes to riff off of).

c) Then look at that mega-list of ingredients and start cramming words & syllables together until certain matches jump out at you as especially good. Pay particular attention to opportunities for humor/irony and even puns.

d) Assemble your newly formed "candidate name/title" list and filter it using the "rules" above.

e) Then reduce it down further to your favorite 7 (really try to limit it to no more than 7) and get feedback from friends, family, colleagues, experts (including laymen/regular folks).

f) Consider the potential visuals. Find logo & poster synergies. Create great images that come from within the candidate names/titles or ones that can effectively compliment the name/title (even if that image has little to nothing to do with the name/title). Images should evoke the emotion your product/film seeks to provide to the customer.

g) Once you have your top 3 candidates just make a gut decision of which you think works best and run with it. Good luck!

NOTE: I have some other truly top-secret methods about this but I keep them to myself to maintain a competitive advantage. ;-)

Wednesday, April 13, 2016

April 13, 2016: Read these 5 Crucial Articles That Should Inform Your Politics...

April 13, 2016: Read these 5 Crucial Articles That Should Inform Your Politics...

1) U.S. Corporations actually pay historically low taxes and somehow 20% of profitable companies pay zero taxes:

2) Nixon escalated the drug war to imprison Blacks and liberals - so said his domestic policy chief and convicted henchman John Ehrlichman:

3) Princeton research shows only the rich influence laws:

4) Lead poisoning is still a major problem:

5) Government regulations cleaned up Los Angeles air quality by 47% and kids are demonstrably healthier for it:

Wednesday, January 20, 2016

Hitler & the Nazis and the Koch Brothers' Family - Some Key Dates on the Timeline (part 1)

Hitler & the Nazis and the Koch Brothers' Family - Some Key Dates on the Timeline (part 1)
(this post does not focus on Fred Koch's work with Stalin in the Soviet Union and Stalin was responsible for well over 3 million deaths)

1926 - Adolf Hitler's "Mein Kampf" is published - it has undeniably genocidal passages and full-throated advocacy for war crimes

February 27th, 1933 - Reichstag Fire Decree - the Nazis' first big step
The decree nullified many of the key civil liberties of German citizens.  It was used as the legal basis for the imprisonment (Without Trial) of anyone considered to be opponents of the Nazis, and to suppress publications not considered "friendly" to the Nazi cause. 

March 22, 1933 - Dachau Concentration Camp established and imprisons (in forced labor camps) political prisoners, Communists and then Jews, Foreign Nationals, Homosexuals et al. -  (ultimately there are over 32,000 documented deaths there)

April 7th, 1933 - Jews officially barred from Civil Service, University and State positions in Germany

>>> 1934 - Mr. Fred Koch (father of the "Koch Brothers" and from whom they inherited hundreds of millions of dollars) has a company known as Winkler-Koch Engineering, which has "provided the engineering plans and began overseeing the construction" of a large Nazi oil refinery in Hamburg (with Adolf Hitler's personal approval). 

September 15, 1935 - Nuremberg Laws institutionalize racism and anti-semitism 

>>> 1938 - patriarch Fred Koch wrote that "the only sound countries in the world are Germany, Italy and Japan" 
Fred Koch wrote that "the only sound countries in the world are Germany, Italy and Japan". To make sure his children (the "Koch Brothers") got the right ideas, he hired a German nanny. The nanny was such a fervent Nazi that when France fell in 1940, she resigned and returned to Germany. 

November 9, 1938 - "Kristallnacht" - Pogrom against German Jews where 91 murdered + 30,000 sent to concentration camps + 1,000 synagogues burned

January 30, 1939  - Hitler in Reichstag speech: "if war erupts it will mean the Vernichtung (extermination) of European Jews"

1939 through 1945 - World War II

>>> 1960 - Fred Koch self-published his own bookA Business Man Looks at Communism where he wrote : "The colored man looms large in the Communist plan to take over America." He strongly supported the movement to impeach chief justice Earl Warren, after the supreme court voted to desegregate public schools in Brown v Board of Education. His sons became Birchers too, although Charles was more enamored of "antigovernment economic writers" than communist conspiracies.

>>> 1960s through 1980s - The Koch Brothers (Charles & David Koch themselves) repeatedly financially support Holocaust Deniers and defenders of Nazis

Wednesday, January 28, 2015

Couple Quick Thoughts on AI (finally posting them)

Apparently everyone familiar with Ray Kurzweil's "Technological Singularity" concept of AI accepts the notions of that:

1) Limitless, ever-growing significant knowledge & advancing intelligence is possible and therefore inevitable
2) Such growth must accelerate beyond human control

Though both may be likely, I think neither is necessarily true.

1)-Response: There are limits on the speed of light and amount of information that can ever be communicated over circuits or fiber optics. To believe those limits must necessarily be exceed-able is tantamount to faith in magic. Consequently, such limits would necessarily put some upper limit on advancing technology or AI (even if that would be unfathomably more advanced than we can even conceive of today).

2)-Response: Chaos theorists love to posit that evolvable nanobots (like self-aware, ever-learning AI) would destroy the earth because aberrations would necessarily grow out-of-control. But I think it's legitimately possible that such aberrations could compete with each other and die out for myriad causes (just like countless bacteria in the real world). Not to mention the possibility that whatever "controls" we institute on such nanobots (metaphorically, our "white blood cells") would evolve as fast or faster as the aberrations, thus always beating the aberrations.

NOTE: I don't claim these ideas to necessarily be original (haven't done enough research to know all that's out there). Please advise me if you've seen them before so I can give proper credit and/or correct myself.

Wednesday, December 17, 2014

On Torture: Keep it illegal and Only Consider Pardoning the Torturers Who are Proven Heroic

We keep seeing hypothetical ethical situations about where and when one would approve of torture.
I those are the wrong framing for a useful discussion. 
In the real world you never get metaphysical/God-like certainty about the tradeoff. The better analogy is POKER!
It's a complex cost-benefit analysis of each of the options and all of those options' ramifications.

SIDE NOTE: I'm avoiding the facile semantic debate about torture vs. "EIT" (Enhanced Interrogation Techniques). Waterboarding has always been considered to be torture (by everyone outside of the GWBush administration) worldwide for decades. And refusing to do standard rehydration (by mouth or IV) and instead doing forceable "Rectal Rehydration" is rape by any reasonable definition. And rape is always torture. This should be obvious to everyone.

OK, back to the ethical debate on Torture...

When you endorse torture of any kind you're necessarily claiming that all of the following is true:
1) You think Torture results in more useful information from the tortured than alternative methods.
2) You think think the cost of false information given under Torture is minimal or worth it.
3) You think the world's diminished respect for those who Torture is minimal or worth it.

And I believe that this is a testable hypothesis that results in an objectively verifiable set of data.
Here are the responses to those 3 points:
• 1) The Senate Report (based on the CIA's own internal reports) confirms that all of the info used to kill Osama Bin Laden was collected through standard (non-EIT) interrogation before EIT were employed. There is not a single specific instances of actionable intelligence that was acquired solely through torture.

• 2) Senator McCain and countless others confirm that victims of torture will regularly lie and say whatever they think the torturers want to hear. The cost of exploring such lies is massive and also results in "opportunity costs" of not exploring better sources of intel. Check out CIA and other government reports pre-9/11 that all concluded that "torture doesn't work".

• 3) We went to war with Iraq's Saddam Hussein (and Syria's Assad) at least in part because they were torturers. Saddam had "Rape Rooms" that inspired armies worldwide to oppose him. Now that the world knows America anally rapes its captured with big tubes (to obscenely "rehydrate" contrary to all medical authorities) should we not expect armies worldwide to oppose us?

FINALLY: Look up what George Washington said about torture or how America dealt with the German enemies in WWI and WWII (even against the friggin Nazis!). Anyone who defends torture now should be ashamed of themselves.  And if they want to rationalize "we gotta keep America safe no matter what" then they should accept the following:

• Keep Torture illegal knowing that if we ever do encounter the perfect hypothetical "ticking bomb" scenario that someone will step up and torture the suspect anyway. That torturer should accept the consequences of torturing (e.g. him being sentenced to prison) even if it resulted in heroic saving of American lives.

And if the torturer was completely right then either the jury will not convict or the president can commute/pardon him. But in every other situation the torturers and those who gave the orders should be convicted for such disgusting sadism. There is value and benefit in being "GOOD". Let's be good for goodness sake.

Sunday, November 25, 2012

New Predictions: Fiscal Cliff Deal will Cap Deductions Thus Hurt Real Estate

After watching the "This Week with George Stephanopoulos" today (11/25/12) as well as my standard sources of news (Rachel Maddow, TYT, NPR and regular random samplings of FoxNews) it is becoming increasingly clear to me that the deal to avert the "Fiscal Cliff" will likely include a capping of tax deductions (especially including mortgage deductions).

If that first prediction is correct then my consequential second prediction is that Real Estate prices will continue to stagnate or may even fall again.

The reasoning is pretty straightforward (assuming mortgage deductions are indeed capped):

1) Owners of multiple properties (especially those who have rental properties) will be hit very hard by the capping of such tax deductions (because it is conceivable that there could be no such cap on one's primary residence). Such a substantial increase in taxes (by virtue of the fact that less rental revenue will be offset by these new, smaller deductions) will result in those owners taking home less profit which will result in marginally profitable rental properties becoming unprofitable. 

2) These newly unprofitable rental properties will encourage sales of those properties (especially for those owners who are highly leveraged).

3) This downward pressure on sale prices will be in effect for at least as long as those new tax policies (capping deductions) are in effect thus limiting price rebounds (perhaps more so than the upward pressure of slow to moderate economic growth in America).

4) Secondarily, those considering buying another house (especially as a rental property) will have substantially less incentive to do so. This reduction in profitability of rental properties (due to less deductions) will further depress prices because the sellers will have fewer & less-motivated buyers than they would have had under the current tax code.

CONCLUSION: Be very careful about buying a rental property until after the fiscal cliff deal is set (unless you're massively low-balling on the price - because, of course, if the property is cheap enough there may still be worthwhile profit to exploit).

BONUS PREDICTION: I suspect this new path (of capping deductions) will most personally hurt those making between $200k to $1mil per year who have a lot of property loans. But it will also make mansions (high end real estate) substantially less attractive because they will cost buyers/owners much more money to own (in the form of more taxes due to limited deductions) compared to the current system. This will likely reduce the amount of loans taken out to buy such properties going forward. This will probably place some significant downward pressure on high end real estate prices for the foreseeable future (IMHO).
CAVEAT: It is not clear to me if this downward pressure on high end real estate prices will overtake the upward pressure that results from the increasing income inequality dynamics (i.e. when the "rich get richer" there is necessarily a greater than average pressure to bid-up high end real estate compared to the rest of the real estate market).

SIDE NOTE: This all ties in to one of my grander theories that most lobbyists (and by extension virtually all non-progressive politicians) have the greatest incentives to protect the top "1/100th of the top 1%" and not actually the top "1%" (let alone the top 5%). A lobbyist (like Grover Norquist, who I truly believe has hurt America) doesn't primarily make money from the top 5% or even the top 1% - even if he most associates with people in those echelons. Instead he gets direct payments from hectomillionaires & billionaires and logically thus considers them to be his bosses. Consequently, policies that would benefit the the top 5% or 1% (like not capping deductions) are sacrificed in order to protect the hectomillionaires & billionaires (who would be most "hurt" by increases in tax rates increasing to 39.6% like they were under Clinton and like those tax policies that Obama specifically campaigned on - which is what the current GOP is most fiercely fighting against).

If those in the top 1% (and especially all those in the top 5%) were smart they'd recognize the danger of superpacs & lobbyists who primarily protect the hectomillionaires & billionaires. Without the superpacs & lobbyists, our elected officials would likely be more influenced by those with whom they most associated (i.e. those in the top 5%). This likely would result (IMHO) in more steeply progressive taxation that collects massively more from hectomillionaires & billionaires (like America did in the 1950s through the the 1960s). There would thus be a greater counter-balance against the insidious & as yet unmitigated increase in income inequality (which I have long preferred to refer to as "income extremity").

MOST IMPORTANTLY: This are just my amateur musings. I have no financial or legal bona fides. Be sure to consult with your financial services professional before making any investment decisions. Remember that just because my previous predictions have proven correct a high percentage of the time doesn't mean they all will. I could easily be wrong. We'll see.


Friday, October 05, 2012

Different Kinds of "False"

When considering who deserves your vote in any election you are bound to encounter "False" statements (those not reasonably considered true based on current evidence). But there are many different kinds of "False" and it's crucial to understand the differences.
1) Lies
2) Incompetence
3) Errors
4) Deception
5) Broken Promises - further split between Failures & Betrayals.
6) Predictions
7) Counter-factuals
Anyone who has taken a college-level course on Logic or Semantics can skip this post. Many other people may read this and consider it completely intuitive or even obvious. This is for everyone else (maybe someone you know who isn't likely to read this).
I will be as non-partisan as possible here…
1) "Saying something false when the speaker knows it to be false" - This is the most egregious kind of false and is best described as a "LIAR TELLING A LIE".
2) "Saying something false when the speaker, erroneously, believes it to be true AND he reasonably should be expected to know that it's false." - This is the second most egregious kind of false and is best described as an "INCOMPETENT PERSON SPREADING MISINFORMATION".
3) "Saying something false when the speaker, erroneously, believes it to be true and the listener has no valid reason to believe the speaker should know the truth." - This is simply an "IGNORANT PERSON MAKING AN ERROR" and should be forgiven so long as the speaker diligently makes an effort to stop the spread of his misinformation.
Related to objectively disprovable falsehoods are "Deceptions".
4) "Saying something that leaves a reasonable listener with an impression or inference that is false." -  That is a "DECEPTION" (regardless of the fact that the statement might be "technically accurate"). Most human language is imprecise because we are a combination of lazy and striving for efficiency. In order to speak without any ambiguity then all communication would take many times longer than they do now (and require a level of education and intellectual rigor well beyond that of the average American). It's simply not practical to be that precise all the time. So some leeway must be possible.
I think the measure of egregiousness of a given speaker's deception should be the "benefit the speaker gets from the naturally erroneous inference made by a reasonable listener". If the speaker does well from the erroneous inference then he should not be given the benefit of the doubt and instead should be admonished for the self-serving "Deception" (which is just as bad as outright "Lying"). Whereas if the speaker gets no benefit from the erroneous inference then there is less culpability and it should be treated as either "Incompetence" (if the speaker should've known better) or an "Error" (if the speaker couldn't be reasonably expected to know better).
Separate from those are three more categories "BROKEN PROMISES" and "PREDICTIONS" and "COUNTERFACTUALS" (the definition used in Philosophy & Logic).
5) Everyone knows what a "Broken Promise" is. Culpability in the broken promise is entirely dependent on the circumstances. It is, in any event, not a "Lie". And, at worst, a broken promise is only a "FAILURE" (provided the promise-maker didn't actively pursue an action contrary to the promise, which if he did, would constitute a "BETRAYAL").
6) Predictions are simply stories until the results come in. A prediction or forecast is, by definition, unprovable at the current time. Later, with the benefit of hindsight, you can test the accuracy of the prediction. But in the moment a prediction simply can't be held as fact. At best, a prediction can be considered relative to the predictor's previous track record with predictions. If the predictor has previously made a lot of "bad calls" relative to his "good calls" then his current predictions must be viewed with skepticism. Don't forget that anything can be created in a fiction. Reality need play no role until the prediction is either confirmed or rejected by the subsequently encountered objective evidence.
7) "Counterfactuals" are simply the fictitious "woulda happened" timelines in a parallel universe. Less valuable than "predictions", counterfactuals are stories that never have to interact with reality. Counterfactuals are actively unhelpful in political debates because any side can make up any fantasy they like of how things would've been better if their politician was in office or, alternatively, that things would've been worse had the opposition had its way.

CONCLUSION: Let's stick to the evidence and reasonable applications of logic.


Sunday, July 15, 2012

Provocative Hypothesis Why Republicans Vote Against Their Interests

My Provocative Hypothesis Explaining Why Most Republicans Vote Against Their Own Interests

I was enjoying CurrentTV's relatively new progressive news show "The Young Turks" and one of their reporters was doing a "man on the street" segment
To be fair, the questions were pretty loaded/biased: 
"What do you think about Romney hiding his wealth in secret offshore accounts and paying a 14% effective tax rate?"
The multiple responses from Republicans were tantamount to:
 "Good for him. He's smart. So long as it's legal he should pay less. if it's legal then anything goes."

Now it's gotta be obvious to everyone that the more Romney pays in taxes the less the rest of us have to pay (less national debt) and the less Romney pays in taxes the more the rest of us have to pay (more national debt). 

So for those thinking purely selfishly, shouldn't they want him to pay more? If you are looking out for your own self-interest then you want others to pay more so that you have to pay less. Ceteris paribus, that is necessarily true. Right?

But the Libertarian/Republican mindset is popularly understood to be more "selfish" in the Ayn Rand sense of the word and therefore necessarily less altruistic. So why should an Ayn Rand-Libertarian/Republican be so comfortable with a policy that is against his own interests?

Perhaps these people are so very principled that they think, for the meritocracy to work, the rules should be set in stone for all and if the system can be "gamed" then that's part of the meritocracy (i.e. the clever who outsmart the system deserve their rewards).

But as attractive as that may be to the Libertarians/Republicans who see themselves as principled, that doesn't really square with their fundamental philosophy. If you are truly selfish (i.e. living only for yourself) then there should be no system that you endorse that has negative results for you. 

Think of the varying rules for boxing matches or negotiated formats for political debates. Any specific rule may give an advantage to one side (e.g. a knockout artist might want no "Standing eight count" and an uncharismatic politician might want to outlaw "audience applause"). It's nearly a tautology that the setting of the rules necessarily affects the outcomes.

Aha! There's a way to explain this phenomenon (where Libertarians/Republicans advocate for a rule that works against themselves) after all. Maybe such people think that they are "better" and, if given a fairly meritocratic system, they will therefore eventually succeed. 
Richard Nixon's head: I promise to cut taxes for the rich and use the poor as a cheap source of teeth for aquarium gravel!
[The audience applauds.]
Fry: That'll show those poor!
Leela: You're not rich.
Fry: But someday I might be rich, and people like me better watch their step!

However, the real data shows that "economic mobility" in the United States is now pretty terrible compared to many European countries. This means a modern American man's earnings is more closely tied to what his dad earned compared to a Swede, Canadian, Fin, Dane, Norwegian, German or Frenchman. Only the British have slightly worse (more stagnant) economic mobility.

Ok, so is it that simple? 
Is it that most Libertarians/Republicans are simply deluded into thinking they're "better" and simultaneously hoodwinked into thinking they have substantial economic mobility? When the truth is that Americans really don't have good economic mobility (compared to other countries and especially compared to America in the middle of the 20th century).

Maybe so (IMHO).

But I'm now going to pose a very provocative and largely unsubstantiated hypothesis
I deliberately don't even call it a "theory" out of respect for the scientific method.

Ok,here it is - it's the infamous adage: "Honor Among Thieves".

First of all: Why is there "Honor Among Thieves"?

Sure one can validly argue that the expression is actually false because, when it comes right down to it, criminals will rip each other off and snitch to save themselves. 

Nevertheless, that concept feels at least intuitively true. And why is that? I assume, at its most basic, the answer is "kinship". Criminals simply recognize commonality in each other even if only in the form of a "common enemy" (the police, sucker citizens etc.)

The "Honor Among Thieves" concept made me think of my previous post about "Defining "Good" via Descendants' Prosperity" - 

Maybe take a minute to click on that link to my blog post and skim it as a refresher.
Ok, you got it?
You back now?
Sweet. Then let me continue my potentially libelous (but at least somewhat falsifiable with further research) hypothesis.

If you're used to "gaming the system" yourself and especially if you think you're good at it (or similarly if you think you'd do worse under a less-gameable system) then you're invested in the status quo. You wouldn't want the rules or enforcement to change because that might hurt you relative to the current situation. 

It's just like the boxing and debate analogies. You think you've got an extra advantage with the current rules (which allow for gaming/hacking/tricking the system in certain ways) so you'll tolerate others doing similar tactics. 

Here's another analogy: if you think you're a good bluffer in poker then you certainly don't want to outlaw bluffing. And you can rationalize it because everyone has the same opportunity for bluffing so it can reasonably be defined as fair for all.

Of course, this all circles back to the first explanation - most Libertarians/Republicans are still wrong. 
The regular Libertarians/Republicans actually can't game the system remotely the way the Romneys of the world can because such complex tactics require substantial investments in lawyers, accountants & lobbyists (which the regular people simply can't afford, let alone amortize for a good ROI).

So even if there exists something like "Honor Among Thieves" which motivates some or most Libertarians/Republicans, in the end they're still voting against their own interests.

For those who doubt that most Libertarians/Republicans vote against their own interests please review these books (or at least some relevant Wikipedia links) before attempting to debate with me:

 - CurrentTV -
 - Futurama Episode -
 - Economic Mobility Poll -
 - Economic Mobility Data -
 - Economic Mobility Overview -
 - My previous post about "rigging the system" for one's descendants -


Tuesday, June 05, 2012

"My Prediction: Greece Won't Exit the Euro" / and the "Slacker Son Scenario"

Quick update about a couple of my previous predictions: 

Romney and Obama are virtually in a dead heat in the polls (remember that I previously predicted that Obama will win reelection and I maintain that view). But I think the polls are currently close because the general public is not yet paying significant attention to the election (which is why polls 2 to 9+ months before any election can vary & swing so wildly). Right now Romney is the "Not Obama" vote and benefiting from ignorance about his record (Romney's Massachusetts  was 47th in job creation, and at Bain, on anything other than ROI for investors & low-taxed "carried interest" compensation for himself, his record will look bad to the voters because of massive layoffs & bankruptcies.) .
NOTE: I have to give my standard caveat that my political predictions are not only biased (I'm a proud Liberal/Progressive) but seem to be less accurate that some of my other predictions because of my biases (I tend to predict futures that trend closer to what I want to see in those cases).

MY NEWEST PREDICTION (as of 06/05/12)...

Call me a "Pollyanna" but I predict that Greece won't exit the Euro.

My main reasoning is based on the fact that any other alternative (of which I'm currently aware) is WAY worse.

All of the major players in the Eurozone (EU) are highly educated and well aware of decision theory. This is not to say that it's impossible for them to make mistakes because of course they have and they can in the future. They're human and biased and have competing priorities and assumptions (we're all flawed).

So here's my thinking when I game-out possible scenarios:
(those who work on Wall Street can jump to "Alternate Scenario#3: The Slacker Son Scenario" where I might have a potentially interesting perspective compared to the well-tread terrain of scenarios#1 & #2).

        a) The EU holds together and doesn't expel Greece from the Euro.
        b) Germany and the rest of the EU countries (especially those other than the PIIGS) subsidize Greece, as necessary, to prop it up to the minimum degree they can rationalize for the foreseeable future.
        c) Everyone "whistles past the graveyard" and hopes we all grow enough to be able to support our current and future obligations.

ALTERNATE SCENARIO#1) "The EU Expels Greece from the Euro Publicly & Outright":
        a) As soon as any word of this leaks out (and it basically must): "Bank runs" happen in Greece as customers transfer their cash primarily to German banks (but perhaps, even worse, literally under mattresses which is the most economically unproductive way possible).
        b) The rest of the PIIGS fear for a similar fate. Consequently, citizens of Portugal, Italy, Ireland and Spain soon after have similarly terrible runs on their banks.
        c) The German banks do very well but now the holders of PIIGS' debt (primarily the banks & investors) are holding horribly precarious (or virtually worthless) paper. If you were the (significantly Socialist) government of Greece why would you pay back your creditors? Why not simply default completely? Life is currently crap in Greece and paying back that debt makes life worse (at least in the short run) for Greek citizens. BTW - Everyone should read "The Shock Doctrine" by Naomi Klein.
        d) The Greeks create their own currency and are instantly subjected to insane inflation (since they've ruined their credibility by getting expelled from the EURO and now there's no "German brother" to bail them out).
        e) The EURO loses value worldwide because of the rest of the Eurozone countries lose credibility for embracing and then so soon after expelling Greece. A currency is attractive because of its stability & credibility.
        f) So the downside is comprehensible and there's no upside since the creditors get burned anyway (likely worse then would had Greece not exited the Euro).

ALTERNATE SCENARIO#2) "The EU Attempts to Surreptitiously Expel Greece from the Euro"
        a) The EU takes some preliminary (shady) steps towards this plan:
                - Flagging Euros/Accounts with an asterisk of sorts denoting the country of origin or the holder's nationality.
                - Enacting (likely opaque/incomprehensible) legislation "under the radar" that enables all of the other EU countries to "freeze & isolate" (quarantine) bank accounts of Greek citizens.
        b) Now when the inevitable "bank run" happens in Greece the Greek citizens get burned the most because their money (which they thought would be safe in German banks) gets confiscated to pay off creditors.
        c) The rest of the PIIGs still suffer the same terrible fate of bank runs (albeit at a slightly slower pace).
        d) Some Creditors do better then they currently fear because they confiscate Greek's investment (but creditors still lose principle).
        e) German banks do less well because "flagged currency/accounts" will encourage Greeks to transfer their cash to other countries (especially those in Asia).
        f) Greeks more certainly default on the rest of their debt (because they were just robbed and aren't concerned with paying their robber even if the robber was previously the creditor and there is debt outstanding).

ALTERNATE SCENARIO#3) "The EU Expels Greece but Simultaneously Gives Stipends & Guarantees (to prevent Greek bank runs)" - aka "The Slacker Son Scenario"
DESCRIPTION: This scenario is a bit like parents who let their slacker son move back into the house after college but he's been such "a pain in the neck & a drain on the finances" that they gotta kick him out. If they simply kick him out on the street there's a chance he'll become an actual bum or criminal (which is bad for the parents). So instead, while the parents do kick the kid out to live on his own they also generously give him a stipend to cover his living expenses. The understanding is that the kid has to start to make it on his own and the stipend will eventually decrease to zero. In this way the rest of the EU publicly promises to subsidize Greece for the foreseeable future.
NOTE: This could also simultaneously be done with the shady elements of "Alternate Scenario#2" to flag & quarantine Greek accounts.

        a) Since this third scenario is so functionally similar to the current course of action (continued inclusion in the EU) there is the possibility that it would indeed prevent Greek bank-runs (and those ensuing bank-runs for the rest of the PIIGS). However these subsidies & guarantees would have to be gigantic and rock-solid to prevent panic (and bank-runs in Greece). This third scenario would basically makes explicit, ironically in expulsion, the implicit promises it made to Greece by means of inclusion in the Euro. It's the same (or a better) level of protection & support with a largely semantic/paper distinction that paves the way, eventually, for a return to entirely separate currencies.

        b) Such gigantic & rock-solid subsidies and guarantees would not be at all politically popular in any EU country that is not one of the PIIGS (especially Germany). This generosity would be unambiguously seen as "zero sum" (good for Greece and by extension the rest of the PIIGS and bad for everybody else, especially Germany).

        c) Since this is still a big change it adds "unpredictability" and thus "risk" to the situation and in so doing enables greater unforeseen potential outcomes. All of that, ceteris paribus, is bad for investors & creditors.

CONCLUSION FOR ALTERNATE SCENARIO#3 = Not so terrible in results for the EU (compared to "the current course") but quite terrible in political "optics" for the subsidizing nations in the EU. Why would a non-PIIGS politician pursue this course of action if there's no clear net benefit?

Alternate Scenarios #1 and #2 would have terrible results and #3 has no clear net benefit. Also, not insignificantly, there is always gigantic inertia in these matters so making a big change would ordinarily require a "shock" to scare people into changing course assuming such a change would make things better (side note: seriously, please read about Naomi Klein's "Shock Doctrine").

Consequently, I predict the EU stays on "the current course" for the foreseeable future and keeps Greece in the Eurozone/using the Euro.

Let's see how well my prescient streak continues.
I do hereby promise to not delete this post out of embarrassment even if I'm ultimately proven wrong.
I sincerely hope to maintain my intellectual integrity by keeping track of my bad calls as well as my good ones.
And I hope others do the same (and not "cherry pick" there accurate predictions like deluded psychics & astrologists).


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