Tag Archives: Business

The Rise And Fall And Rise And Fall Of King Dollar


BOOK REVIEW

Money: How the Destruction of the Dollar Threatens the Global Economy and What We Can Do About It, Authors: Steve Forbes and Elizabeth Ames.

The Money Trap, Author: Robert Pringle.

By Ralph Benko – We live in a world monetary system that makes the U.S. dollar its official reserve currency.

About 60%  of international central bank reserves are Yankee dollars. Some, both right and left, in America and abroad, consider the reserve currency status of the dollar a bug in the software of our world monetary system.

Getting this fixed is, in the opinion of some consequential thinkers, of capital importance for the generation of quality jobs, and equitable prosperity, in America and the world. more> http://tinyurl.com/kgmlxya

Secret Fed Tapes Recorded Goldman’s Capital Game


By Matt Levine – Do read/listen to the story though! It’s fascinating …

… wait. Is that not how it’s supposed to go?

One conclusion you might draw from the tapes is that the regulators and the banks had a very different conception of what social practice they were engaged in.

Goldman was helping Santander play a game against its regulators, while the New York Fed just wanted to be friends with Goldman and not make too much trouble.

It certainly makes it easier to win a game if the other side doesn’t know it’s playing. more> http://tinyurl.com/lq9l238

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Has Capitalism Reached A Turning Point?


By Steve Denning – The entrenched interests are mutually reinforcing, as society as a whole has come to accept the practices and ideology of 20th Century management as inevitable.

The C-suite is offered extraordinary compensation by their boards for implementing the practices. Business schools teach their students how do it.

Institutional shareholders are complicit. Regulators pursue individual wrong-doing rather than addressing systemic failure. Rating agencies reward malfeasance. Analysts applaud short-term gains and mostly ignore long-term rot.

Politicians, lavished with campaign contributions, stand by and watch. In such a context, it isn’t easy for any individual business leader to take a stand and say: this is simply not right.

It’s the entire society that needs to change. more> http://tinyurl.com/p4as2xl

American families are stuck in a lost quarter century


By Matt Phillips – Auto sales are booming—but that’s largely because it’s so easy for consumers to get loans.

In a consumption-dominated economy like the US, consumers need to spend.

And if consumers don’t have the wages to spend, the only way to keep the consumption engine going is by extending debt to people with extremely shaky finances.

That’s a recipe for a future full of financial crises. more> http://tinyurl.com/mf2obd3

The Rise (and Likely Fall) of the Talent Economy


BOOK REVIEW

Playing to Win: How Strategy Really Works, Author: Roger L. Martin.

By Roger L. Martin – Another, less well-known mechanism that has boosted income for the possessors of talent is the notorious “2&20 formula.”

Its roots lie in a 2,000-year-old practice whereby Phoenician ship captains would take 20% of the value of a cargo successfully delivered.

In 1949, when a fee of 1% to 2% of assets under management was typical in the investment management field, Alfred Winslow Jones, the first acknowledged hedge fund manager, adopted the Phoenician formula. He set himself up as the general partner of what would come to be referred to as a private equity firm and charged the limited partners who invested in his fund a 20% cut of the profits that he generated (“carried interest,” in industry parlance) on top of a 2% asset management fee. more> http://tinyurl.com/o2fndol

European Breakups Shouldn’t Be So Hard to Do


By Leonid Bershidsky – Suddenly, the possibility arises of small nations springing up throughout Europe:

Catalonia and the Basque country fragmenting Spain; Flanders and Wallonia — and don’t forget a separate German-speaking mini-state — in place of Belgium;

Veneto and South Tyrol breaking off from Italy;

Bavaria and East Frisia leaving Germany;

Corsica and Savoy saying goodbye to France;

Lapland carving off parts of Norway, Sweden and Finland. more> http://tinyurl.com/pyeowy9

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Google Is Target of European Backlash on U.S. Tech Dominance


By Danny Hakim – Across Europe, Google has been under fire, reflecting the broader challenges facing American technology companies. Google, fairly or not, has become a glaring proxy for criticism of an intrusive American government and concern over America’s unmatched technology dominance.

Much has changed since Google was founded in the late 1990s. It was once viewed as an idealistic start-up whose credo was “Don’t Be Evil.”

“For politicians in Europe, it’s clear they have to act and regulate the way Google dominates the market.” more> http://tinyurl.com/ojf4vmn