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Why are diamonds more expensive than water, when the latter is far more useful? Because there’s a lot of water in the world but very few diamonds. Diamonds are

Why are diamonds more expensive than water, when the latter is far more useful? Because there’s a lot of water in the world but very few diamonds. Diamonds are actually a great metaphor for overpriced executive "talent". Why? First, diamonds are not fucking rare. The price has been heavily manipulated. In executives, the manipulation pertains to the closed social network of entrenched parasites who can get those jobs: a similar cartel over high-echelon relationships (and owed favors, and extortions). The scarcity is illusory; there are a hundred times more people who are competent to fill their shoes. Second, many diamonds are junk. Third, diamonds are not really natural. Diamonds from the earth must be carved into a man-made shape through technical means, and (anyway) artificial diamonds are often superior in quantity. Similarly, "executive talent" is an artificial artifact, not some genetically-ordained rarity. Fourth, there's a lot of negativity and violence, even, involved in keeping this phony scarcity intact. I guess the major difference is that few diamonds have negative value, while most corporate executives do. The greatest trick these assholes (the upper class) ever played on society is convincing us that we need them, and that they are somehow so special that having connections to their stupid little club should be the #1 dominating factor in who makes the most money, gets to make important decisions, and works in the highest-level jobs.

jquery 13y ago
> First, diamonds are not fucking rare. True, but jewel-grade diamonds are rare. Likewise, run-of-the-mill executive talent isn't rare... but top quality talent is.
- ForHackernews 13y ago
  "The difference is that the world diamond market is largely controlled by a single private enterprise, the South Africa-based De Beers cartel. The geniuses behind De Beers recognized early on that a stable, profitable diamond industry depended on controlling both supply and demand. De Beers rarely discovers new sources of diamonds; rather, it focuses on controlling existing ones, limiting production, and if necessary buying up surplus gems and stockpiling them to prop up the market. It sets prices arbitrarily and cuts off supplies to dealers who buy through unauthorized channels. On the marketing side, De Beers hired advertising firms, starting with N.W. Ayer in the late 1930s, to render axiomatic the idea that diamonds = true love." http://www.straightdope.com/columns/read/2524/is-a-diamonds-price-a-true-measure-of-its-value http://www.straightdope.com/columns/read/2524/is-a-diamonds-... http://www.barnesandnoble.com/w/the-rise-and-fall-of-diamonds-edward-jay-epstein/1013550616?ean=2940012796721 http://www.barnesandnoble.com/w/the-rise-and-fall-of-diamond...
  - jquery 13y ago
    De Beers is no longer a monopoly and controls roughly 50% of the market: http://en.wikipedia.org/wiki/De_Beers#Diamond_monopoly http://en.wikipedia.org/wiki/De_Beers#Diamond_monopoly > On the marketing side, De Beers hired advertising firms, starting with N.W. Ayer in the late 1930s, to render axiomatic the idea that diamonds = true love." Irrelevant to anyone except history buffs. Want to learn how Christmas started?
- Florin_Andrei 13y ago
  For every Elon Musk out there, there's a thousand smooth talkers who are exceptional only at projecting an image.
shubb 13y ago
I find it very strange that hospitality is such a big part of the financial industry. Bank / broker employees take clients (who are senior employees of pension funds for instance) out for food and drinks. Maintaining the relationship by going out drinking on the company credit card many nights a week is an important part of the job. My company mostly deals with governments. Bribery legislation says that every time we provide a cup of coffee to them at a meeting, that has to be declared. It is weird that this hospitality game isn't regarded as cooperate corruption (i.e. the clients agent gets fired for making investment decisions based on who bought him the most expensive dinner). Anyone with experience of this care to correct my understanding of what is happening here?
- NkVczPkybiXICG 13y ago
  There are gift limits set by FINRA: http://www.investopedia.com/exam-guide/series-26/supervisory-systems/finra-conduct-rules.asp http://www.investopedia.com/exam-guide/series-26/supervisory...

jquery 13y ago

> First, diamonds are not fucking rare. True, but jewel-grade diamonds are rare. Likewise, run-of-the-mill executive talent isn't rare... but top quality talent is.

ForHackernews 13y ago
"The difference is that the world diamond market is largely controlled by a single private enterprise, the South Africa-based De Beers cartel. The geniuses behind De Beers recognized early on that a stable, profitable diamond industry depended on controlling both supply and demand. De Beers rarely discovers new sources of diamonds; rather, it focuses on controlling existing ones, limiting production, and if necessary buying up surplus gems and stockpiling them to prop up the market. It sets prices arbitrarily and cuts off supplies to dealers who buy through unauthorized channels. On the marketing side, De Beers hired advertising firms, starting with N.W. Ayer in the late 1930s, to render axiomatic the idea that diamonds = true love." http://www.straightdope.com/columns/read/2524/is-a-diamonds-price-a-true-measure-of-its-value http://www.straightdope.com/columns/read/2524/is-a-diamonds-... http://www.barnesandnoble.com/w/the-rise-and-fall-of-diamonds-edward-jay-epstein/1013550616?ean=2940012796721 http://www.barnesandnoble.com/w/the-rise-and-fall-of-diamond...
- jquery 13y ago
  De Beers is no longer a monopoly and controls roughly 50% of the market: http://en.wikipedia.org/wiki/De_Beers#Diamond_monopoly http://en.wikipedia.org/wiki/De_Beers#Diamond_monopoly > On the marketing side, De Beers hired advertising firms, starting with N.W. Ayer in the late 1930s, to render axiomatic the idea that diamonds = true love." Irrelevant to anyone except history buffs. Want to learn how Christmas started?
Florin_Andrei 13y ago
For every Elon Musk out there, there's a thousand smooth talkers who are exceptional only at projecting an image.

shubb 13y ago

I find it very strange that hospitality is such a big part of the financial industry. Bank / broker employees take clients (who are senior employees of pension funds for instance) out for food and drinks. Maintaining the relationship by going out drinking on the company credit card many nights a week is an important part of the job. My company mostly deals with governments. Bribery legislation says that every time we provide a cup of coffee to them at a meeting, that has to be declared. It is weird that this hospitality game isn't regarded as cooperate corruption (i.e. the clients agent gets fired for making investment decisions based on who bought him the most expensive dinner). Anyone with experience of this care to correct my understanding of what is happening here?

NkVczPkybiXICG 13y ago
There are gift limits set by FINRA: http://www.investopedia.com/exam-guide/series-26/supervisory-systems/finra-conduct-rules.asp http://www.investopedia.com/exam-guide/series-26/supervisory...