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Simple Ethics Rules for Better Risk Management

Harvard Business

For far too long, managing risk has been seen as an esoteric business function — designed to control losses and adhere to compliance standards. The now famous Tylenol recall of the 1980s is an enduring example of how Johnson & Johnson’s credo guided decision making in a time of crisis.

Ethics 31
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Political Greenwashing: US Exports Coal Pollution to Europe; What About China?

MishTalk

Coal is a particular good example. exports of power plant-grade coal to Germany have more than doubled since 2008. That’s because it shifts some pollution — and the burden for cleaning it — onto another other country’s balance sheet. increasingly has helped supply. steam coal, the type burned in power plants.

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European Banks Dump Massive Amounts of Subordinated Debt on Investors

MishTalk

It is the highest such volume since the $122.4bn seen in 2008 according to Dealogic, the data provider. Mezzanine debt is another example of subordinated debt. Mike "Mish" Shedlock [link] Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Consider asset-backed securities.

Banking 71
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Persistent Overoptimism Three Ways: Truckers, Fed Economists, Manufacturers

MishTalk

UPS Freight , the fifth-largest LTL, reported tonnage off 10 percent (matching the record decline reported in the 2009 3Q during the depth of the Great Recession) and shipments down 5 percent year over year (the worst drop since 2008 fourth quarter). Overoptimism 2008-2010 The SEP growth forecast for 2008 never turned negative.

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Fed Study Shows "Persistent Fed Overoptimism about Economic Growth"; What Will They Do About It?

MishTalk

Possible explanations for this pattern include missed warning signals about the buildup of imbalances before the crisis, overestimation of the efficacy of monetary policy following a balance-sheet recession, and the natural tendency of forecasters to extrapolate from recent data. A study by Alessi, et al. This is a general statement.

Study 28
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If You Think Downsizing Might Save Your Company, Think Again

Harvard Business

During the Great Recession of 2008, companies around the world downsized their workforces. American firms alone laid off more than 8 million workers from the end of 2008 to the middle of 2010. Many of these effects may have long-term consequences, like reduced innovation, that are not captured in short-term financial metrics.

Company 28
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BIS Slams the Fed; Ridiculous Question of the Day: "Is The Fed Going To Attempt A Controlled Collapse?"

MishTalk

Historical evidence shows that this rarely happens following a balance sheet recession. Such episodes often coincide with banking crises, which in turn tend to go hand in hand with much deeper recessions – balance sheet recessions – than those that characterise the average business cycle.