Phases of the crisis – are we approaching the endgame?
byPhase 1: Greenspan, the arch money crank The Greenspan “put”, and the collective adoption by most central bankers of low interest rates after the…
Banking
Buffett’s $5 billion ‘vote of confidence’ in Bank of America
byWarren Buffett is the most successful investor on the planet and a very smart fellow. His core team also gave me a job in…
Remember: Real Bankers are Fiduciaries
byThe Interim Report on our banking system by Sir John Vickers was released on Monday. There is no mention in all of the report…
Detlev Schlichter: Don’t believe the hype! Why the ECB rate hike doesn’t mean anything.
byLet us establish some principles first. Central banks do indeed pose a risk to economic stability but not because their monetary policy is constantly…
From Lombard Street to Easy Street
byThe old adage about how to succeed in banking was the formula of ‘3-6-3’: borrow at 3%, lend at 6% and get onto the…
At the ASI: Mervyn King and narrow banking
byVia Tom Clougherty at the Adam Smith Institute, Mervyn King and narrow banking: Ultimately, the problem with modern banks is that they do not operate…
My Journey to Austrianism via the City
byI have spent the best part of the last two decades pitting my wits against the market. It’s an unforgiving game: I’ve seen ups and downs, and many of my rivals buried under an avalanche of hubris, passion, illogical thought and unchecked emotion.
I have witnessed the sheer folly of the ERM crisis, the Asian crisis, the failure of the Gods at Long Term Capital Management and the insanity of the tech boom.
I have enjoyed the ‘NICE’ decade (Non-Inflationary Constant Expansion), and scared myself silly during the credit crisis.
I am a trader. […]
News from Korea: Bank run fears engulf savings bank industry
byWith a hat tip to Sean Corrigan, via the Korea JoongAng Daily, we learn that their savings industry has been engulfed by a panic:…
The importance of traders and the evils of bankers
byAnother classic article from James Tyler, brought forward Trader: One whose business is trade or commerce. Trade and commerce is the lifeblood of wealth…
The corporate virtue of bankers
bySenior bankers make a lot of money and take a lot of risk. This combination strikes most commentators and politicians as revealing sad failures…