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alstry (35.96)

My Buddy The Physicist

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September 29, 2010 – Comments (10)

As many of you know...I have a friend who is a PhD physicist specializing in failure probabilty analysis.  It wasn't until recently that he was admitted into the Institute of Alstrynomics and over the weekend he was elevated to equity partner after he sent me the following email which I will summarize.

He was playing Monopoly with his children and after some period of play ran out of money.  AFTER he ran out of money he made the following observation:

...had he had unlimited access to credit, or the "bank"....he would be guaranteed victory every single game....and in relatively short order as he could "buy" up all the properties, quickly put hotels on them and charge whatever he wants after gaining control of the board.  He could even give his kids "free passes" as long as they paid him a "tax" the next time they came around.  Eventually he could charge them and/or tax them whatever he wanted and would be guaranteed victory everytime.

As part of his elevation to "equity parther" he read the book Atlas Shrugged and was amazed how we are reverse engineering the book....but not in fiction but in reality.

It is why Buffett is no longer Buffett....capitalism implies the fair allocation of credit.....when credit is only offered to a few, and in unlimited quanities, those few get to win everytime, regardless whether they deserve it or not.

The access to credit becomes the determining factor to victory or defeat....no longer is America the land of opportunity....it has become the land where he who has access to credit wins....and he who doesn't loses.

Never before, save a World War, has the Federal Government had so much access to credit while its citizens are being cut off....credit is Freedom.....and the Federal Government's freedom was constrained by the Freedom of its citizens....

but now that the Federal Government's freedom is no longer constrained by the freedom of its citizens...the Federal Government and Wall Street no longer need its citizens.

As a matter of fact, the best interests of the Federal Government and Wall Street now rests overseas....as overseas gets credit and Americans do not.  It raises a fundemental Constitutional issue....is our Federal Government looking out for its citizens' and nation's interest...or is the Federal Government now serving Wall Street and the interests of foreign objectives?

All interesting question which can be discussed in a different forum...but what you can learn from the game of Monopoly, and my friend the physicist.....who ever has access to unlimited credit will ALWAYS be able to take the life, liberty, property, and the persuit of happiness of the person who is constrained by limited credit.

Ask yourself the following....since when is bailing out Wall Street and NOT maintreet in the NATIONAL interest?....unless of course you work on Wall Street, and Wall Street owns the banks, the media, and now seemingly most of your politicians.

Remember...Buffett had no problem shutting down Berkshire and reinvesting the money in other places in America....now Buffett is helping to shut down America and reinvest the capital overseas.....

No wonder Buffett is telling you to suck it up.....because you will be forced to suck whatever he wants as he has unlimited access to credit....and you don't.

And wasn't Buffett the guy who was against big inheritances because it was like starting on the 50 yard line in a 100 yard race.........well having unlimited access to credit against limited access to credit is like starting on the 90 yard line in a 91 yard race......the best most often never wins in such a race.

Notice Buffett is making his money on derivatives and foreign investments these days...two things he was against just a few years ago....no more building companies with durable COMPETITIVE advantages....simply a game where he who gets the most amount of easy money wins.

and you lose as the nation continues to get cut off of credit.

As my friend reads this blog....let me extend a warm welcome to our newest equity partner in the the Institute of Alstrynomics.

10 Comments – Post Your Own

#1) On September 29, 2010 at 10:00 PM, alstry (35.96) wrote:

Anti-austerity protests sweep across Europe

This headline could easily read:

People demand equal access to credit as insolvent bankers and insolvent politicians.........

It is pretty strange when the people let their polticians and bankers get all the credit they want but the politicians and bankers cut them off of credit.........and the people simply sit there like sheep as their life, liberty and pursuit of happiness is taken right from underneath their noses....

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#2) On September 29, 2010 at 10:33 PM, JerseyShoreGirl (< 20) wrote:

Welcome, PhD Friend of Alstry ... the Institute of Alstrynomics is like the Hotel California .. "you can check out anytime you like, but you can never leave."

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#3) On September 29, 2010 at 11:32 PM, guiron (23.30) wrote:

This headline could easily read:

People demand equal access to credit as insolvent bankers and insolvent politicians.........

Yeah, but it doesn't, because it would be ridiculous.

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#4) On September 30, 2010 at 1:09 AM, TMFCrocoStimpy (93.23) wrote:

Ah, the ubiquitous friend with a PhD in Physics.....its funny, they never seemed like such a social bunch in my experience.

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#5) On September 30, 2010 at 1:17 AM, goalie37 (91.54) wrote:

I'm just trying to picture playing Monopoly with Alstry.  "Ok, you can be the sheep, but I want the thimble!"

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#6) On September 30, 2010 at 1:29 AM, NOTvuffett (< 20) wrote:

If the PhD Physics guy was so smart, how did his kids kick his butt in Monopoly? lol.

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#7) On September 30, 2010 at 11:05 AM, mtf00l (47.46) wrote:

@NOTvuffett

I can answer that!

Before I went to college, I was capable of independent, rational thought.

After college I now require specific instructions!

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#8) On September 30, 2010 at 9:42 PM, tfirst (27.51) wrote:

Let's just remember that our money has NO value. Every dollar out there just represents the amount that someone else owes a bank somewhere. Our money is inheirently wortless. Noone has anything that wasn't first borrowed from some bank, somewhere.

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#9) On September 30, 2010 at 9:55 PM, alstry (35.96) wrote:

But if the banks are not lending....then it becomes impossible to pay the interest on the EXISTING debt.....

and since practically everything is leveraged, or depdent on credit to function, the nation mathematically must shut down....

except for those that get credit.

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#10) On October 02, 2010 at 12:21 PM, Rasbold (90.39) wrote:

Monopoly is so great...the perfect distraction from economic strife. I joke with my children, "Hey look, this was created in 1933, do you guys know what was going on in 1933?"

 The Great Depression. Old habits die hard!

Well, time to fill the boat...the fish are waiting for me, they love the sight of my downrigger!

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