The most effective rent seeking organizations provide something of value. It is almost a universal truth. It is how they justify themselves with the aid of effective PR.
+1 If I sell a 25 cent hotdog for 100 dollars, am I a shameless rent-seeker or a 'valued producer'. See Khan Academy. That's the future of higher education - disseminated. Break the cartel.
Just to point out, within the exact context of the article posted, 'rent seeking' has been explicitly defined as "Instead of creating wealth, rent seekers simply transfer it — from others to themselves". So no value added however tiny. Is the professor correct on an objective basis, I don't know. Subjectively, how do I feel about it, as someone who has been employed in the heart of the financial world for an extensive period of time? I think he might be more right than wrong
Having been on both sides of the fence: trader at a major financial institution and now working at a manufacturing firm, this is an important question everyone should ponder before choosing their career profession.
Nitro, A serious question--- have you given up on making money in the markets? The tone of these recent posts leads me to think this-- but i could be completely wrong. surf
I agree with this characterization. I think "trading", meaning a human being in front of a screen pushing keys and looking at lines is extremely boring. On the other hand, I find financial programming extremely interesting, all the way from infrastructure programming to the very highest level of system design and research. On the other hand, I think programmers are horribly raped for their efforts, so I try to mix my trading in such a way where I am mostly programming and understanding the mathematics of new trading strategies, therefore being happy by essentially living my life as an "artist". The systems that I develop are the ones making money, and being rewarded monetarily in accordance with my efforts and skill and creativity, all the while being mostly self-directed.
I haven't given up at all surf. I am a horrible walking contradiction. I think that the whole enterprise of trading is, dirty, for lack of a better word. On the other hand, I am truly challenged when I try to make systems that break the 50 microsecond level end-to-end with minimal jitter, or research strategies that are truly new and based on sound mathematical thinking. Or figuring out how to handle gigantic amounts of data to find needles in a haystack...If it weren't for the Computer Science aspect of trading, I wouldn't be seen within a thousand miles of it. So, yeah, I can see why you think this about me. If I had to live my life again, I would be a research mathematician or a theoretical physicist at some university (although these days I am equally fascinated by Biology). Those things challenge me perfectly, and I don't have a single bad thing to say about those pursuits.
Thanks for your honesty, Nitro. You have always had my respect here. I often feel contradicted also so I know what you mean. Peace, surf
Academics turning their nose at Wall St. reminds me of Mollier's fable, when the fox could not reach at the liver on a tree branch said "it stinks anyway". I hope we have not forgotten about Myron S. Scholes, Robert C. Merton otherwise known as the Long Term Capital Management mess, they were not only academics but also Nobel Laurets. Thus the Alan Greenberg's quote "give me Phds", poor, hungry and driven.
Here is a counter to the professor: http://en.wikipedia.org/wiki/Anton_(computer) It is not just that you make money. It is what you do with it.