Financialized valuation imposes short-termism and disconnects decisions from material production.

Evidence

The three currents of valuation that meet in financial theory have a certain number of common factors in addition to the crucial point of constructing value from the financial investor’s point of view, which is deemed the best and the ”fairest”. Short-termism is another important feature. Discounting is reducing the influence of the future, instituting a preference for the present. Belief in the ability of today’s prices to incorporate information about the future is founding ahistorical models that cannot conceive of the major historical shifts or take the long term into consideration. Risks, seen in terms of statistical dispersions observed in a recent past, are minimised. And finally, the assumption of liquidity and the mental experience of ever-possible conversion into money disconnects the reasoning from material life. The financial viewpoint has no need to know or understand the actual production processes (combining people and material resources under the constraints of technical procedures in concrete situations) in order to make decisions. — Ève Chiapello, Financialisation of Valuation, 41

Categorization

• XREF: Connects directly to the reading purpose on how financialized valuation colonizes non-financial activity, and resonates with ‘Grafting & Growth’ only loosely — more so with general finance-culture critiques like Randy Martin’s work. — connects to: Financialization fragments corporate, state, and individual horizons into short-termism — Max Haiven, Cultures of Financialization, 138; Portfolio logic shifts investment from long-term commitment to scattered short-term securitization. — Max Haiven, Cultures of Financialization, 449; Financialization means accumulation through financial channels rather than production — Greta R. Krippner, The Financialization of the American…, 11 (+1 more)
• SEED: The point that the financial viewpoint ‘has no need to know or understand actual production processes’ is a clean angle for an essay on how financial metrics make material labor invisible.

Related

• Financialisation also colonizes non-economic spheres via valuation techniques. (similarity 0.83)
• Financialization fragments corporate, state, and individual horizons into short-termism (similarity 0.83)
• Portfolio logic shifts investment from long-term commitment to scattered short-term securitization. (similarity 0.83)
• Financialization means accumulation through financial channels rather than production (similarity 0.81)
• Financialization treats risk as probabilisable, displacing close knowledge of the object valued (similarity 0.81)
• Financialised valuation draws on financial economics and mathematical finance. (similarity 0.81)
• Financialization means finance’s logics penetrate the fabric of everyday life (similarity 0.80)
• Financialization is how society gets liquidated into marketable commodities (similarity 0.80)
• Finance creates intangible commodities that exist only through valuation techniques (similarity 0.80)
• Financialised reasoning can colonise non-monetary measures like scores and percentages. (similarity 0.80)
• Some financial metrics resist financialization by ignoring time and capital logic (similarity 0.80)
• Financialization marks a decisive shift from production-based to finance-driven accumulation. (similarity 0.79)
• Financialization scholarship spans three approaches with distinct analytic foci. (similarity 0.79)
• Financialization shifts firm investment from core business toward finance, weakening workers’ claims on revenue. (similarity 0.79)
• Assetization remains an unrecognized analytical entry point in financialization research (similarity 0.79)

Broader Connections

• Financialization fragments corporate, state, and individual horizons into short-termism #corroborates (0.92) — Max Haiven, Cultures of Financialization, 138
• Financialization means accumulation through financial channels rather than production #corroborates (0.82) — Greta R. Krippner, The Financialization of the American…, 11
• Portfolio logic shifts investment from long-term commitment to scattered short-term securitization. #corroborates (0.80) — Max Haiven, Cultures of Financialization, 449