Open Secret 02/06/16

Our laws are not generally known; they are kept secret by the small group of nobles who rule us. We are convinced that these ancient laws are scrupulously administered; nevertheless it is an extremely painful thing to be ruled by laws that one does not know. I am not thinking of possible discrepancies that may arise in the interpretation of the laws, or of the disadvantages involved when only a few and not the whole people are allowed to have a say in their interpretation. These disadvantages are perhaps of no great importance. For the laws are very ancient; their interpretation has been the work of centuries, and has itself doubtless acquired the status of law; and though there is still a possible freedom of interpretation left, it has now become very restricted. Moreover the nobles have obviously no cause to be influenced in their interpretation by personal interests inimical to us, for the laws were made to the advantage of the nobles from the very beginning, they themselves stand above the laws, and that seems to be why the laws were entrusted exclusively into their hands. Of course, there is wisdom in that—who doubts the wisdom of the ancient laws?—but also hardship for us; probably that is unavoidable.

The very existence of these laws, however, is at most a matter of presumption. There is a tradition that they exist and that they are a mystery confided to the nobility, but it is not and cannot be more than a mere tradition sanctioned by age, for the essence of a secret code is that it should remain a mystery. Some of us among the people have attentively scrutinized the doings of the nobility since the earliest times and possess records made by our forefathers—records which we have conscientiously continued—and claim to recognize amid the countless number of facts certain main tendencies which permit of this or that historical formulation; but when in accordance with these scrupulously tested and logically ordered conclusions we seek to adjust ourselves somewhat for the present or the future, everything becomes uncertain, and our work seems only an intellectual game, for perhaps these laws that we are trying to unravel do not exist at all.

There is a small party who are actually of this opinion and who try to show that, if any law exists, it can only be this: The Law is whatever the nobles do. This party see everywhere only the arbitrary acts of the nobility, and reject the popular tradition, which according to them possesses only certain trifling and incidental advantages that do not offset its heavy drawbacks, for it gives the people a false, deceptive and over-confident security in confronting coming events. This cannot be gainsaid, but the overwhelming majority of our people account for it by the fact that the tradition is far from complete and must be more fully inquired into, that the material available, prodigious as it looks, is still too meager, and that several centuries will have to pass before it becomes really adequate. This view, so comfortless as far as the present is concerned, is lightened only by the belief that a time will eventually come when the tradition and our research into it will jointly reach their conclusion, and as it were gain a breathing space, when everything will have become clear, the law will belong to the people, and the nobility will vanish. This is not maintained in any spirit of hatred against the nobility; not at all, and by no one. We are more inclined to hate ourselves, because we have not yet shown ourselves worthy of being entrusted with the laws. And that is the real reason why the party who believe that there is no law have remained so few—although their doctrine is in certain ways so attractive, for it unequivocally recognizes the nobility and its right to go on existing.

Actually one can express the problem only in a sort of paradox: Any party which would repudiate, not only all belief in the laws, but the nobility as well, would have the whole people behind it; yet no such party can come into existence, for nobody would dare repudiate the nobility. We live on this razor's edge. A writer once summed the matter up in this way: The sole visible and indubitable law that is imposed upon us is the nobility, and must we ourselves deprive ourselves of that one law?

—Franz Kafka, "The Problem Of Our Laws"

[video:https://www.youtube.com/watch?v=Bow1ZJTV4L4]

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Now go to your room - if we haven't foreclosed on it.

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"Religion is what keeps the poor from murdering the rich."--Napoleon

hecate's picture

"go to your room" thing never really worked around our house, because for most of the years my brother and I shared a room, and so once ordered into the place, with door closed, we would just seize the opportunity to engage in, and/or plan, new miscreancies.

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dividend cuts

In 2015, equity investors looking for yield suffered death by 394 cuts.

Last year, the number of dividend reductions far surpassed 2008, according to Bespoke Investment Group, citing data from Standard & Poor's.

The ratcheting down of payouts to shareholders is a function of weak commodity prices, sluggish growth dampening corporate profits, and a tightening of credit conditions. This combination—and in particular the stingier lending—could exacerbate the carnage already seen this year in financial markets, further dampening economic activity.

The number of payout cuts enacted was almost 100 more than at the outset of the Great Recession—a time when the implosion of Lehman Brothers Holdings Inc. caused equity markets to plummet in the later stages of the third quarter:

"Whenever you see comparisons between any period and 2008 it grabs your attention," wrote Bespoke in a report published Friday.

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The bank’s inquiry comes as the U.S. Securities and Exchange Commission expands an industrywide crackdown on trading and sales practices in markets where mortgages, auto loans and other debt are bundled into securities. It’s also raising new questions in the booming market for subprime auto-loan securities that some regulators have likened to the mortgage-bond binge of the 2000s.
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frightening

He cited Deutsche Bank AG and Credit Suisse Group AGas examples in a talk outlining bearish views at a conference in Beverly Hills, California, on Friday. Both banks fell this week to their lowest levels since the early 1990s in European trading.
“We see the price of major financial stocks, particularly in Europe, which are truly frightening,” Gundlach said. “Do you know that Credit Suisse, which is a powerhouse bank, their stock price is lower than it was in the depths of the financial crisis in 2009? Do you know that Deutsche Bank is at a lower price today than it was in 2009 when we were talking about the potential implosion of the entire global banking system?”
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enhydra lutris's picture

the Snark was a boojum, you see.

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That, in its essence, is fascism--ownership of government by an individual, by a group, or by any other controlling private power. -- Franklin D. Roosevelt --

lotlizard's picture

In Beamtenherrschaft ages there is ceaseless activity, all planned in advance, begun at the scheduled second, carefully supervised, scrupulously recorded — but inevitably finished late and poorly done. The burden of omniscience on the ruling class becomes virtually intolerable, and most flee into some form of schizophrenia or fantasy. Great towers, pyramids, moon shots, and similar marvels are accomplished at enormous cost while the underpinnings of social solidarity crumble entirely.

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