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jerryking : debt   49

CIBC’s Victor Dodig warns about global debt levels; urges Canada to prepare
SEPTEMBER 11, 2018 | The Globe and Mail | by JAMES BRADSHAW (BANKING REPORTER)

Who/Where/Occasion: CIBC's CEO Victor Dodig, in a speech to the Empire Club

Problem(s):
* alarm over rising global debt levels, warning that Canada needs to start preparing now for the next economic shock.
* some of the most acute threats to the global economy are beyond this country’s control, but cautioned Canadians not to get too comfortable while times are good.
* developing problems could ripple through interwoven financial markets around the world.
* “It sounds counterintuitive, but that same debt that helped the world recover is actually infusing risk into the global financial system today," ...“I think there’s a real serious global challenge of this low-interest-rate party developing a big hangover."

Remedies:
* clarify rules around foreign direct investment, which is falling in Canada. The main culprit is the uncertainty plaguing large business deals that require approval from Ottawa under opaque foreign-investment rules – and he cites the turmoil surrounding the Trans Mountain pipeline expansion as an example.
* more immigration to Canada, asking the government – which has already set higher immigration targets for the coming years – to open its arms even wider.
* governments and employers to work more closely with universities and colleges to match the skills graduates have to employers' needs, promoting what are known as the STEM disciplines – science, technology, engineering and math – as well as skilled trades.
* remove interprovincial trade barriers.
* allow companies to expense capital investments within one year to be more competitive with U.S. rules.

My Takeaways:
CEOs  CIBC  debt  FDI  global_economy  interconnections  interest_rates  opacity  pipelines  resilience  speeches  uncertainty  Victor_Dodig  war_for_talent  threats  beyond_one's_control  complacency  preparation  financial_system  readiness 
september 2018 by jerryking
Many casualties in aftermath of bursting bubbles - FT.com
November 12, 2009 | FT | from Mr Edward Chancellor.

Prof Mishkin classifies the technology bubble as a mere case of irrational exuberance. He claims that its collapse posed no systemic risk. If that were the case, then why did the failure of WorldCom and Enron in 2002 drive his former colleague at the Federal Reserve, Ben Bernanke, to worry publicly about a “deflation” threat? And if the US economy was in such a robust state, why did the Fed keep interest rates so low for so long, thereby creating a real estate bubble?
A legacy of excessive debt is only one of the problems posed by bubbles. They contribute to the misallocation of resources – too much fibre optic cable or too many McMansions – which acts as a drag on economic growth. Asset price inflation also redistributes wealth in an arbitrary way between winners and losers. Bursting bubbles damage both corporate and household balance sheets, creating many innocent victims as people lose their jobs or suffer depleted savings.
bubbles  U.S._Federal_Reserve  debt  casualties  letters_to_the_editor  technology  asset_values  Benjamin_Bernanke  arbitrariness 
october 2016 by jerryking
University challenge
25 June/26 June 2016 | Evernote Web - FT | by Thomas Hale and Gonzalo Vina
Colleges_&_Universities  tools  finance  debt  London  investment_banking  real_estate 
june 2016 by jerryking
One Firm Getting What It Wants in Washington: BlackRock - WSJ
By RYAN TRACY and SARAH KROUSE
Updated April 20, 2016

The Problem: BlackRock believed that the U.S. Federal Reserve was leaning towards designating it as a source of financial system risk, like other big banks, and as such, be “too big to fail”.

What Was At Stake: the designation “systemically important” would draw BlackRock in for greater oversight by the Federal Reserve which would mean tougher rules and potentially higher capital requirements from U.S. regulators.

The Solution: BlackRock didn't take any chances. The company began spending heavily on lobbying and engaging policymakers. Executives at the firm began preparing for greater federal scrutiny of their business in the months following the 2008 financial crisis. BlackRock aggressively prepared a counter-narrative upon discovered a Treasury Department’s Office of Financial Research report that asset-management firms and the funds they run were “vulnerable to shocks” and may engage in “herding” behavior that could amplify a shock to the financial system. The response took the form of a 40-plus-page paper rebutting the report. The firm suggested that instead of focusing on the size of a manager or fund, regulators should look at what specific practices, such as the use of leverage, might be the source of risks. While other money managers such as Fidelity and Vanguard sought to evade being labeled systemically important, BlackRock’s strategy stood out.
BlackRock  crony_capitalism  Washington_D.C.  risks  lobbying  too_big_to_fail  asset_management  advocacy  government_relations  influence  political_advocacy  policy  U.S._Federal_Reserve  systemic_risks  Communicating_&_Connecting  U.S.Treasury_Department  counternarratives  oversight  financial_system  leverage  debt  creating_valuable_content  think_differently  policymakers  policymaking 
april 2016 by jerryking
New ROM CEO Joshua Basseches isn’t fazed by the major institution’s debt - The Globe and Mail
JAMES ADAMS
The Globe and Mail
Published Friday, Apr. 01, 2016

The ROM is “a singular institution in North America,” with “astonishing breadth” in it encyclopedic collections and “remarkable curatorial capacity,” he declared. It had close to 1.1 million visitors in 2015-16, likely the largest yearly attendance in the museum’s history. A show of Pompeii artifacts alone drew almost 275,000 visitors over six months or so.

Meanwhile, the Ontario Ministry of Tourism, Culture and Sport, under which ROM operates as a Crown corporation, claims to be “very pleased” with the museum’s activities while continuing to cover as much as 55 per cent of its operating expenses.
ROM  CEOs  first90days  HBS  management_consulting  debt 
april 2016 by jerryking
The humbling of Valeant’s Michael Pearson - The Globe and Mail
TIM KILADZE
The humbling of Valeant’s Michael Pearson
SUBSCRIBERS ONLY
The Globe and Mail
Published Tuesday, Mar. 22, 2016

What we’re left with: A “Canadian” company we should happily disown, and critical reminders that certain business rules should never be broken. Chief among them: Debt is never a problem until, suddenly, it is; markets will love you until, suddenly, they don’t; and the roll-up game, driven by endless acquisitions, is nearly impossible to sustain.....By slashing R&D spending costs, Mr. Pearson freed up cash flow to buy more companies – whose R&D departments were then gutted to repeat the same trick. To juice earnings, he acquired Ottawa-based Biovail in 2010, which came with a Barbados-based subsidiary. Valeant started ushering U.S. profits to offshore tax domiciles – marking the first-ever pharmaceutical tax inversion and sending its corporate tax rate to the mid-single digits.

To fuel acquisitions, Mr. Pearson borrowed tens of billions of $ of incredibly cheap debt. By mid-2015, Valeant had $31-billion (U.S.) in debt and paid over $1-billion a year in interest.

There were warning signs these bold acts would backfire. Last March, Warren Buffett’s inner circle started to inflict damage. At an investor meeting, Charlie Munger, one of the value investor’s best friends, said he was “holding his nose” by looking at Valeant, adding that the company “wasn’t moral.”

That cautionary message did little to deter two of Valeant’s top investors: the Sequoia Fund – which has ties to Mr. Buffett – and Bill Ackman’s Pershing Square Capital Management. Whatever criticisms were hurled at the drug maker, they stood by it, repeatedly stressing that they believed in Mr. Pearson. Their faith in him seemed nearly biblical. And because they showed resolve, hedge funds kept piling in – momentum investing at its very worst. By the end of June, nearly 100 of them had stakes in the drug maker........One of the best lessons from the global financial crisis was that everything became correlated when the U.S. housing market crashed. The same is true for Valeant. Investigations into its pricing policy made investors worry about revenue; worries about the income statement morphed into fears about balance-sheet debt; leverage woes prevented Valeant from borrowing more to fund future acquisitions.

The cynicism turned investors’ momentum strategy on its head.
Valeant  Bay_Street  CEOs  pharmaceutical_industry  Charlie_Munger  Warren_Buffett  M&A  boards_&_directors_&_governance  correlations  hedge_funds  Pershing_Square  William_Ackman  debt  R&D  cash_flows  roll_ups 
march 2016 by jerryking
New Liberal government, same old litany - The Globe and Mail
PRESTON MANNING
Special to The Globe and Mail
Published Friday, Feb. 26, 2016
op-ed  Preston_Manning  Liberals  deficits  debt  Justin_Trudeau 
february 2016 by jerryking
Infrastructure spending is no miracle cure - The Globe and Mail
KONRAD YAKABUSKI
The Globe and Mail
Published Thursday, Apr. 23 2015

In some circles, infrastructure spending is seen as a miracle cure to lift the economy, if not political fortunes. With rock bottom interest rates, proponents say now is the perfect time to ramp up spending on trains and subways in order to stimulate growth, relieve congestion and boost long-term productivity.

As with most economic strategies, however, the devil is in the execution....You can always find studies to buttress your claims that new infrastructure pays for itself by stimulating the economy and generating jobs during the construction phase while boosting productivity thereafter. But this is hardly true across the board. Does anyone believe the Sheppard subway line has made Toronto’s economy more productive? It’s a sinkhole whose operating costs are a drain on the rest of the transit system.

And what about Pearson Airport’s Terminal 1? It’s a cavernous monster that adds to passenger stress levels while subtracting from their productivity. Speaking of poorly conceived projects, the soon-to-open rail link between Pearson and downtown Toronto appears to rely on overly optimistic ridership projections.

In our infrastructure envy, we decry our subways, roads and commuter trains as second-rate. But proper scale and functionality are far more important than fancy architecture or expensive materials.
Konrad_Yakabuski  infrastructure  politics  debt  second-rate  Keynesian  scaling  functionality  UPX  interest_rates  sinkholes  low-interest  overoptimism 
april 2015 by jerryking
Anti-austerity looks less cartoonish by the day - The Globe and Mail
DOUG SAUNDERS
The Globe and Mail
Published Saturday, Jan. 31 2015

Greece has overwhelmingly elected a government run by the left-wing, anti-austerity coalition Syriza. New Prime Minister Alexis Tsipras tellingly described the country’s bailout program, which directs the devastated Greek economy entirely toward debt repayment at any cost, as “fiscal waterboarding” and said he will demand a writedown of the debt.
Greece  elections  austerity  Doug_Saunders  Greek  stimulus  debt  debt_foregiveness  structural_change 
february 2015 by jerryking
David Chilton’s rise from The Wealthy Barber to The Wealthy Dragon - The Globe and Mail
IAN MCGUGAN
TORONTO — The Globe and Mail
Published Friday, Jan. 23 2015,

Clips from the Wealthy Barber

On luck: “I’ve been incredibly lucky in life, and my health is my greatest gift. I don’t work out much, I love Nibs and Diet Pepsi, but I’m never sick a day, I never get a cold, I hardly ever sleep, and it’s all from my mom and dad. They’re in their early 80s and still have crazy energy.”

On the economy: “I try to be optimistic but you have to be concerned about debt levels just about anywhere in the developed world. I think governments are making promises they may not be able to keep. It would not shock me to see another financial crisis at some point over the next three to five years.”

On investing: “It’s shocking how badly many people manage their own investments. Mutual fund fees and expenses are part of that, but we also appear to have mastered the art of buying mutual funds that are just about to underperform.”

On mutual funds: “Paying 2 per cent [in mutual fund fees] doesn’t sound like much, because we still relate things to our high school marks. Losing 2 per cent off a mark of, say, 70 per cent is no big deal. But with mutual funds, you’re talking about losing two percentage points of an estimated 8 per cent or so return. That’s a quarter of your expected gain.”

On alternative investing: “If you’re going to get involved with hedge funds, don’t invest in them, run them.”

On entrepreneurship: “A lot of the people we see on Dragons’ Den have the naive idea that the biggest challenge in business is getting their product on the shelves. It’s not – it’s getting it off the shelves. Once it’s in the store, how do you create demand, how do you make it stand out among the competition?”

On perseverance: “No author in history did more interviews about a single book than I did about The Wealthy Barber. I did hundreds of interviews a year. For years and years and years.”
creating_demand  personal_finance  personal_branding  angels  entrepreneurship  luck  fees_&_commissions  perseverance  debt  investing  writers  authors  developed_countries  developing_countries 
january 2015 by jerryking
Ontario will eventually have to pay the piper - The Globe and Mail
JEFFREY SIMPSON
The Globe and Mail
Published Saturday, Dec. 13 2014,

Fortunately, Bonnie Lysyk, the province’s Auditor-General, is not beholden to the vagaries of politics and speaks truth both to power, where it most likely will not be heeded, and to the general public, where it will be ignored. As she plaintively wrote in a report this week, the office has been warning about the debt for three years but “has attracted little public attention.”

The AG urged “legislators and the public to start a conversation about paying down the province’s total debt.” Note the words “paying down.” Not stabilizing, but reducing. A tall order.

The AG’s numbers were stark. Even if the government balances the books by 2017-18 (which is rather implausible), net debt will have more than doubled in a decade....The AG could have added three other factors that will make Ontario’s situation even more difficult than the report conveyed.

First, the population is aging, and aging comes with more costs for the government. Second, health care is now rising at just 2 per cent a year (compared to about 7 per cent from 2000 to 2010). It’s doubtful that this modest rate of increase can be sustained. Third, the population’s aging will contribute to lower rates of economic growth, which in turn will crimp government revenues at current levels of taxation.
debt  Jeffrey_Simpson  Ontario  aging  slow_growth  auditors  speak_truth_to_power  grey_tsunami 
december 2014 by jerryking
Paradise lost - FT.com
December 19, 2013 5:03 pm
Paradise lost

By Robin Wiggleswort

The Caribbean is suffering from crippling government debt, endemic crime and a middle-class brain drain that have contributed to an economic meltdown of alarming proportions...

Persaud blames an “anti-growth coalition” for the Caribbean’s plight, a tight-knit nexus of politicians, business interests and unions that benefit from the status quo – one of the invisible flaws of small states where everyone knows one another. “The Caribbean is at a crossroads, it desperately needs political leadership,” he argues. “It can overcome these challenges, as other small states have, but it requires courage.”

Some fear that the erosion of the local middle classes – both the backbone of civil society as well as the most demanding voters – eases the pressure on politicians to shape up. “The depletion of our brightest graduates, our middle class and some of our most enterprising workers has drained the foundations of our society,” laments Trevor Munroe, a Jamaican academic, former union leader and founder of National Integrity Action, an anti-corruption watchdog. “Remittances are a big plus, but the big minus is the weakening of society’s internal drivers for reform.”
Caribbean  criminality  brain_drain  emigration  small_states  anti-growth  anti-development  tourism  cultural_detachment  middle_class  leadership  courage  civil_society  crony_capitalism  business_interests  cronyism  demanding_voters  debt 
december 2013 by jerryking
What fatal flaw led us so deeply into debt?
October 18, 1997 | Globe & Mail | William Thorsell.

The Unheavenly City by Edward Banfield.

Wisdom has three practical dimensions (with intuition providing a fourth for the truly sage person). The first part of wisdom is knowledge, the second is context based on experience, the third is a long perspective on time......the more forward-looking you are, the higher your social class is. People who live a great deal of their intellectual life in the future derive two great advantages over those who do not: They avoid predictable damage to their interests, and they exploit opportunities that might otherwise be lost to others.

This requires a high tolerance for delayed gratification.

In his engaging book, Future Perfect, Stanley Davis argues that most people are stuck managing the results of things that have already happened....the aftermath. Great leaders manage what has not yet happened....the beforemath. "People who take out life insurance and have home mortgages are managing the beforemath...they are managing the consequences of events that have not yet taken place."
William_Thorsell  books  instant_gratification  delayed_gratification  sophisticated  social_classes  debt  debt_crisis  wisdom  long-term  intuition  far-sightedness  beforemath  anticipating  contextual  forward_looking  foresight  aftermath 
july 2013 by jerryking
Debt-stressed Zimbabweans auction off prized possessions
CRIS CHINAKA

CHINHOYI, Zimbabwe — Reuters

Published Thursday, Aug. 16 2012
Zimbabwe  Robert_Mugabe  economic_downturn  debt  downsizing 
march 2013 by jerryking
Ontarians' dream is over: Power bills are going up - The Globe and Mail
MURRAY CAMPBELL

From Monday's Globe and Mail

Published Monday, Aug. 18 2003
Ontario  debt  electric_power  NDP  politics 
march 2013 by jerryking
Tech drives nails into coffins of Europe’s weak economies
Nov. 30 2012 | The Globe and Mail | by ERIC REGULY.

Technology is having a devastating effect on employment, which in itself is not new. What is new is that the job destruction everywhere among low-skilled workers seems on the verge of being repeated among white-collar jobs. That is the theory of Erik Brynjolfsson and Andrew McAfee, digital economy specialists at MIT and authors of Race Against the Machine, a book about the digital revolution and how it is reshaping employment and entire economies.

Technology has been displacing jobs since the Industrial Revolution, but the lost jobs were more or less replaced with new jobs
Eric_Reguly  Europe  EU  debt  Erik_Brynjolfsson  technological_change  Andrew_McAfee  digital_economy  MIT  Greece  technology  job_destruction  job_displacement  automation  white-collar  low-skilled  weak_economy  digital_revolution 
december 2012 by jerryking
Caribbean in greatest crisis since independence : Kaieteur News
November 18, 2012 | By KNews | Sir Ronald Sanders.

This is a worrying condition for the CARICOM region. For, if the public has lost faith in the willingness of governments and institutions to act swiftly and together to extract them from crisis, the consequences will be even more serious. They will include increased emigration of the skilled persons in our societies, shrinkage of investment by local business people, and a general malaise in the productive sector. In short, it will lead to a worsening of the crisis.
The sad aspect of all this is that every leader in the member-states of CARICOM, in its institutions and in the private sector know very well that deeper integration of Caribbean economies and closer harmonisation of their external relations would be an immediate stimulus to pulling CARICOM countries out of what Dr Anthony rightly describes as “this vicious vortex of persistent low growth, crippling debt, huge fiscal deficits and high unemployment”.
Caribbean  crisis  Caricom  failed_states  misgovernance  low_growth  brain_drain  unemployment  debt  sovereignty  downward_spirals 
november 2012 by jerryking
The 30-Day Debt Diet
July 2008 | Essence Magazine | Sakina P. Spruell
personal_finance  debt 
november 2012 by jerryking
10 Ways to Stumble in Commercial Real Estate -
November 12, 2006 | New York Times |By VIVIAN MARINO

(1) NO FINANCIAL PLAN
“The first step for investing in anything — whether it’s real estate or diamonds — is to have a plan, and your plan is based on your goals,”..... are you looking for a property that can be leased out, generating a monthly cash flow? Or, do you want to make a quick profit with a property that can appreciate in value after improvements?

You will also need to focus on a specific property type, based on personal interest and expertise. Mr. Cummings suggests taking on partners with “personal knowledge or specific talent dealing with this category of property.” He also recommends having an exit strategy,
(2) THINKING LOCATION ONLY
“It’s not location, location, location — it’s location, use and approval,” ......While finding a good location in a well-traveled corridor is important, he explained, you must also ensure that the proposed use for a property fits within zoning and deed restrictions as well as other local laws. That’s a crucial part of due diligence.

(3) NOT RESEARCHING A CITY
Even with zoning laws on your side, you may still be unable to move ahead with plans. “Some communities are getting impossible to develop,”.....Although a site may be properly zoned for such buildings, local planning boards might object that a design and scope of a project are incompatible with the area.

(4) SEEING ALL AREAS AS SIMILAR
“Real estate is a local singular market,” ......“What goes on in San Francisco may appear to be the same as what is going on in Chicago or Miami, but in reality it is not.” You need to explore an area’s demographics — learning, for instance, the average age of the residents and potential customers, as well as household income. And while you’re at it, check on the prevailing rents, along with vacancy rates and property taxes. Some of this information can be found by contacting the local government or Chamber of Commerce, and by talking with neighboring business owners.

(5) NO THOUGHT TO TENANT MIX
you can’t expect to draw much business unless you have the right mix of tenants, both within your property and in the neighborhood. An “anchor,” or a business with a history of successful performance, can help.

(6) MISCALCULATING COSTS
uncover hidden problems in a building — structural, mechanical or environmental. The seller can then decide to fix the problems or renegotiate the sales price........set aside a cushion for future repairs or improvements. (Even tenants with so-called triple-net leases, in which they agree to pay all the continuing operating expenses like property taxes, may need to have a property reconfigured to meet their needs.)

“Many people do not take the time necessary to quantify deferred maintenance — from an antiquated heating system to a leaking roof to holes in the parking lot,”

(7) MISCALCULATING RETURNS
To get an idea of your initial rate of return, or capitalization rate, review expenses and income for the most recent year.

Some brokers and investors base their calculations on occupancy rates at or close to 100 percent. But take into account the likelihood of vacancies,

(8) TAKING ON ONEROUS DEBT
commercial-property land, can come with very onerous terms!!

(9) DOING IT ALL YOURSELF
experienced investors typically have a group of experts in place, including brokers, engineers, lawyers, accountants and property managers, to help with conducting due diligence.

(10) PROCRASTINATION
What good is doing the research if you never put it to use?
anchor_tenants  commercial_real_estate  debt  demographics  exits  financial_planning  hidden  investors  IRR  land_uses  miscalculations  missteps  pitfalls  procrastination  real_estate  rules_of_the_game  zoning 
september 2012 by jerryking
Tear down those mountains of cash
Jul. 21 2012 | The Globe and Mail | Doug Saunders.

Corporations/multinationals are hoarding cash, which is strange, because this should be a great time for companies to invest: low prices, low interest rates, cheaper labour costs. A sensible company would build up cash during boom times – when investments are more expensive – and spend it during recessions, when consumer demand is weak and capital is cheap....Saunders argues for taxing those cash reserves.
Doug_Saunders  debt  cash_reserves  multinationals  interest_rates  idle_funds 
july 2012 by jerryking
Behind a Chinese City's Growth, Heavy Debt - WSJ.com
April 23, 2012 | WSJ | By TOM ORLIK in Beijing and LINGLING WEI in Chongqing

Behind a Chinese City's Growth, Heavy Debt
Borrowing Fueled Chongqing's Infrastructure Projects, Highlighting National Problem of Reliance on Government Spending

Article
China  debt  scandals  Chongqing  Bo_Xilai 
april 2012 by jerryking
Drummond report offers a world of possibilities to Ontario’s cash-strapped government - The Globe and Mail
Adam Radwanski | Columnist profile | E-mail
From Thursday's Globe and Mail
Published Wednesday, Feb. 15, 2012
Ontario  debt  Don_Drummond  cash-strapped 
march 2012 by jerryking
Ray Dalio: Man and machine
Mar 10th 2012 | The Economist |
The economic ideas of the world’s most successful hedge-fund boss.

Mr Dalio says his ideas are entirely the product of his own reflections on his life as a trader and his study of economic history. He has read little academic economics (though his work has echoes of Hyman Minsky, an American economist, and of best-selling recent work on downturns by Carmen Reinhart and Kenneth Rogoff) but has conducted in-depth analysis of past periods of economic upheaval, such as the Depression in America, post-war Britain and the hyperinflation of the Weimar Republic. He has even simulated being an investor in markets in those periods by reading daily papers from these eras, receiving data and “trading” as if in real time.
Bridgewater  Ray_Dalio  hedge_funds  finance  economics  debt  business 
march 2012 by jerryking
Lunch with the FT: Zbigniew Brzezinski
January 13, 2012 | FT.com | By Edward Luce.

Strategic Vision: America and the Crisis of Global Power.

“We [Americans] are too obsessed with today,” Brzezinski continues. “If we slide into a pattern of just thinking about today, we’ll end up reacting to yesterday instead of shaping something more constructive in the world.” By contrast, he says, the Chinese are thinking decades ahead. Alas, Brzezinski says, Obama has so far failed to move into a strategic habit of mind. To a far greater extent than the Chinese, he concedes, Obama has to respond to shifts in public mood. Brzezinski is not very complimentary about American public opinion.

“Americans don’t learn about the world, they don’t study world history, other than American history in a very one-sided fashion, and they don’t study geography,” Brzezinski says. “In that context of widespread ignorance, the ongoing and deliberately fanned fear about the outside world, which is connected with this grandiose war on jihadi terrorism, makes the American public extremely susceptible to extremist appeals.” But surely most Americans are tired of overseas adventures, I say. “There is more scepticism,” Brzezinski concedes. “But the susceptibility to demagoguery is still there.”....Brzezinski lists "Ignorance", as one of America’s six “key vulnerabilities” alongside “mounting debt’, a “flawed financial system”, “decaying national infrastructure”, “widening income inequality”, and “increasingly gridlocked politics”.
Zbigniew_Brzezinski  security_&_intelligence  strategic_thinking  China_rising  China  diplomacy  princelings  America_in_Decline?  threats  vulnerabilities  infrastructure  income_inequality  debt  political_polarization  long-term  partisan_politics  fractured_internally  NSC  ignorance  public_opinion  books  Chinese  instant_gratification  demagoguery  APNSA  gridlocked_politics  Edward_Luce  incurious  financial_system  historical_amnesia 
january 2012 by jerryking
Portugal begs former colony Angola for a bailout.
For Sale: Europe Begs Its Former Vassals for a Bailout

By Michael Moran

| Posted Wednesday, Nov. 23, 2011,
BRIC  Europe  austerity  cutbacks  debt  Portugal  Angola 
november 2011 by jerryking
Lessons from Private-Equity Masters
June 2002 | Harvard Business Review| by Paul Rogers, Tom Holland, and Dan Haas.

The Four Disciplines of Top Private-Equity Firms

Define an Investment Thesis

Have a three- to five-year plan

Stress two or three key success levers

Focus on growth, not just cost reductions

Don’t Measure Too Much

Prune to essential metrics

Focus on cash and value, not earnings

Use the right performance measures for each business

Link incentives to unit performance

Work the Balance Sheet

Redeploy or eliminate unproductive capital—both fixed assets and working capital

Treat equity capital as scarce

Use debt to gain leverage and focus, but match risk with return

Make the Center the Shareholder

Focus on optimizing each business

Don’t hesitate to sell when the price is right

Act as unsentimental owners

Get involved in the hiring and firing decisions in portfolio companies

Appoint a senior person to be the contact between the corporate center and a business
HBR  Bain  lessons_learned  private_equity  metrics  investment_thesis  measurements  dispassion  incentives  constraints  leverage  focus  sweating_the_assets  unsentimental  debt  owners 
november 2011 by jerryking
Meaning of 'success'
20 Jan 2004 | The Globe and Mail pg.16| Tom Malleson.
ProQuest  success  IMF  debt  letters_to_the_editor 
october 2011 by jerryking
The Gates Farewell Warning
MAY 28, 2011 |- WSJ.com |..As Reagan knew, America's global
power begins at home, with a strong economy able to generate wealth. The
push for defense cuts reflects the reality of a weak recovery and a
national debt that has doubled in the last two years. But the Obama
Administration made a conscious decision to squeeze defense while
pouring money on everything else.
***"More perhaps than any other Secretary of Defense, I have been a
strong advocate of soft power—of the critical importance of diplomacy
and development as fundamental components of our foreign policy and
national security," Mr. Gates said at Notre Dame. "But make no mistake,
the ultimate guarantee against the success of aggressors, dictators and
terrorists in the 21st century, as in the 20th, is hard power—the size,
strength and global reach of the United States military."
Robert_Gates  speeches  Pentagon  soft_power  debt  editorials  rogue_actors  U.S._military  hard_power  SecDef 
may 2011 by jerryking
To Help Africa, Sell Diaspora Bonds - NYTimes.com
Homeward Bond
By NGOZI OKONJO-IWEALA and DILIP RATHA
Published: March 11, 2011
Africa  Diaspora  remittances  debt  bonds 
march 2011 by jerryking
Nigel Wright is cut from different cloth
Sept. 24, 2010 | Globe & Mail | Andrew Steele.

So what of Mr. Wright and his ability to manage this agenda? For starters, his background is unusual. World-class financial dealmakers are not the normal cloth from which one cuts a political aide.

Since Jack Pickersgill invented the role for Mackenzie King, Canadian chiefs of staff have been smart political operators like Jean Pelletier or Tim Murphy or Hugh Segal or Marc Lalonde or Tom Kent. Often lawyers. Sometimes academics. Sometimes seconded civil servants.......The appointment of Nigel Wright as chief of staff is worth some serious
discussion, because it is a very shrewd move by the PM. Basically, the
PM’s chief of staff has 3 major challenges. 1. The PM must focus his
energies – in public and in private – almost exclusively to the economy.
Incumbents across the continent are in peril because of the lingering
impacts of the recession: unemployment primarily, but also the threats
of inflation, interest rates, credit crunches, real estate devaluation
and sovereign debt. 2. The PM only gets to focus on the economy if all
the other issues are managed down. 3. The only message out of Ottawa
most days will need to be about the economy and what the PM is doing
about it. Mr. Harper is clearly aware that the economy is his biggest
threat. With Nigel Wright, he is making a move that continues to address
that threat.
Stephen_Harper  Nigel_Wright  Onex  private_equity  chief_of_staff  economic_downturn  economic_data  debt 
september 2010 by jerryking
Analyst Sees Securities Firms Cutting Jobs and Pay - NYTimes.com
September 7, 2010 | NYT via By BLOOMBERG NEWS | Anonymous.
“The key product drivers of Wall Street’s revenues and profits over the
past decade have been in a structural decline over the past three
years,” Ms. Whitney said in the report.

Barclays, the Credit Suisse Group and the Royal Bank of Scotland Group
may lead a slowdown in hiring in Europe as the fixed-income trading boom
fizzles out, recruiters said last month. Barclays Capital’s income from
trading bonds and commodities fell 40 percent in the first half amid
the sovereign debt crisis. Fixed-income, currencies and commodities
trading was the biggest revenue contributor at investment banks from
Deutsche Bank to Goldman Sachs.
Wall_Street  layoffs  brokerage_houses  securities_industry  ufsc  sovereign-risk  debt  structural_decline 
september 2010 by jerryking
Letters to the Editor: Spotting Bubbles in the Economy Isn’t Hard, but Deflating Them Is - WSJ.com
AUGUST 2, 2009 | Wall Street Journal..."More important than
appointing and paying someone to identify risks which are already being
identified is the need to have the political will to do something about
them when they are identified and, more importantly, to have the wisdom
to know which ones are going to become problems and which ones aren’t.
Systemic risks that cause major disruptions are only identified in
hindsight."..."Systemic risk is not created by assets increasing in
value—that’s good news. The risk is that asset values increase because
of excessive debt growth. Bubble watching is then simply a matter of
defining a speed limit for debt growth."
letters_to_the_editor  bubbles  Alan_Greenspan  systemic_risks  debt  political_will  assets  asset_values  wisdom  hindsight 
august 2010 by jerryking
The Nation of Futurity
November 16, 2009 | New York Times | By DAVID BROOKS.
"...faith in the future has motivated generations of Americans..". "The
faith is the molten core of the country’s dynamism. There are also
periodic crises of faith. "Today, the rise of China is producing such a
crisis." "The Chinese now have lavish faith in their scientific and
technological potential." "The anxiety in America is caused by the vague
sense that they [China] has what we’re supposed to have.... faith in
the future...." "The U.S. now has an economy shifted too much toward
consumption, debt and imports and too little toward production,
innovation and exports." "It would be nice if some leader could induce
the country to salivate for the future again...connecting discrete
policies — education, technological innovation, funding for basic
research — into a single long-term narrative." "It would mean creating
regional strategies, because innovation happens in geographic clusters,
not at the national level."
David_Brooks  China  future  faith  innovation  regional  America_in_Decline?  consumption  debt  imports  clusters 
november 2009 by jerryking
Op-Ed Columnist - Our Three Bombs - NYTimes.com
October 6, 2009 | New York Times | By THOMAS L. FRIEDMAN. "As
we continue to build up carbon in the atmosphere to unprecedented
levels, we never know when the next emitted carbon molecule will tip
over some ecosystem and trigger a nonlinear climate event....people are
worried that our next dollar of debt — unbalanced by spending cuts or
new tax revenues — will trigger a nonlinear move out of the dollar and
torpedo the U.S. currency."

If people lose confidence in the dollar, we could enter a feedback loop,
as with the climate, whereby the sinking dollar forces up interest
rates, which raises the long-term cost of servicing our already massive
debt, which adds to the deficit projections, which further undermines
the dollar.
Tom_Friedman  climate_change  nonlinear_systems  debt  step_change  tipping_points  apocalypses  feedback_loops  interest_rates  discontinuities  think_threes 
october 2009 by jerryking
Government as venture capital catalyst: Pitfalls and promising approaches
Feb 2002 |Economic Development Quarterly. Thousand Oaks: Vol. 16, Iss. 1; pg. 49, 11 pgs | by Timothy Bates.
venture_capital  failure  small_business  debt  financial_institutions  economic_development  San_Antonio 
june 2009 by jerryking
Why Capital Structure Matters - WSJ.com
APRIL 21, 2009| Wall Street Journal | by MICHAEL MILKEN

The optimal capital structure evolves constantly, and successful
corporate leaders must constantly consider six factors -- the company
and its management, industry dynamics, the state of capital markets, the
economy, government regulation and social trends. When these six
factors indicate rising business risk, even a dollar of debt may be too
much for some companies.
corporate_finance  capital_structure  Michael_Milken  debt  equity  capital_markets 
april 2009 by jerryking
Deep in Debt, and Now Deep in Worry
January 24, 2009 |New York Times| By BEN STEIN
Advice about money: do not act like typical Americans. Do not fail to
save. Do not get yourself in debt up to your eyeballs. Work and take
pride and honor from your work. Learn a useful skill that Americans
really need, like law or plumbing or medicine or nursing. Do not expect
your old Ma and Pa to always be there to take care of you. Learn to be
self-sufficient through your own contributions. “Be prudent.”
Ben_Stein  financial_literacy  personal_finance  self-sufficiency  prudence  personal_economy  savings  frugality  debt 
march 2009 by jerryking

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