Expert insights. Personalized for you.
It’s a $31 Billion Balance Sheet Hole That Keeps Growing. GE has the largest pension shortfall in the S&P 500. more…). Economics MORE
Heres my understanding of the current TARP/TARPII/PPIP/etc plans: The major "sick" banks wont lend to businesses, because their balance sheets are tied up with bad assets that they cant sell. I realize that is a gross simplification, but if the gist is right, it leads me to a simple observation: Why doesnt the government just give long-term loans to the healthy banks (building up their balance sheets) so that they can loan to businesses? skip to main | skip to sidebar. MORE
We can learn to read a balance sheet and we can get sophisticated about long-term decision making. Intellectual horsepower is overrated. “I’m too stupid to do that,” isn’t helpful and it’s probably not true. We’re capable of learning Photoshop, We can figure out the arithmetic behind our analytics. We can follow a nuanced discussion of strategy. If we’re being honest, the real reason we don’t do this work isn’t that we’re stupid. MORE
If the firms don’t have a strong balance sheet, if they foresee a potential cash flow problem, or if they have clients in particularly hard hit industries, I’d be concerned. Reading Time: 3 minutes. The coronavirus epidemic has rattled the planet. MORE
These mergers will produce tough competitors with diversified portfolios, sturdy balance sheets, greater scale, and advanced capabilities, including consumer engagement, provider collaboration and informatics, population management, and digital channels. Article Thursday, April 14, 2016. Of all the challenges faced by the Blue Cross and Blue Shield Plans, few are as significant as the likely mergers of the big US health care companies. MORE
Deutsche Bank shares have collapsed to lows deep under crisis lows and collapse of Lehman in the Great Financial Crisis. … Continue reading → Economics MORE
Current Liabilities Cash Much Smaller Than You Think I don't often dive into balance sheets, but did so after reading a Market-Watch opinion by Brett Arends. billion in “off-balance-sheet” liabilities. If “off-balance-sheet” is not included in my totals, then subtract another $31.5 Yes, companies in general could spend their reported cash numbers, but to do so would further leverage their balance sheets with debt. MORE
Building on information provided in Management Consulting: A Guide to the Profession , I highlight three approaches that a consultant can use when performing a valuation: Balance sheet valuation; Market based valuation; and. “Price is what you pay. Value is what you get.” ” ~ Warren Buffett. MORE
The Fed also firmed up its Balance Sheet Normalization Plans. The Fed released the Minutes of June 13-14 FOMC meeting today. The minutes show an overreliance on regional report soft data and consumer confidence measures instead of hard data measures. more…). Economics MORE
Having a resilience plan in place can set a company apart from its competitors while simultaneously improving cash flow and strengthening the balance sheet. Transformation Insights MORE
In addition to its standard boilerplate about inflation, the Fed stated it would begin balance sheet normalization “relatively soon” Here is the full Text of the FOMC Press Release. As expected, today’s FOMC meeting came with zero surprises. more…). Economics MORE
Last week the ECB reported that its balance sheet Expanded by €11.26 billion to €3.249 trillion. What is the makeup? … Continue reading → Economics MORE
Bernanke also made the case in his presentation for keeping the Fed’s balance sheet big in the aftermath of the financial crisis. [Is Most other major central banks have permanently large balance sheets and are able to implement monetary policy without problems,” he said. Bernanke said he was not making a recommendation about how big the balance sheet ultimately should be. MORE
Balanced Budget Ammendment Sign the Balanced Budget Petition. Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. The risk premiums of risky securities have become unsustainably compressed in the process, and the Feds balance sheet has metastasized to $3.5 The Fed would probably show an insolvent balance sheet today if its holdings were actually marked-to-market. MISHS. MORE
Empowering the finance organization to take decisive action to strengthen the balance sheet is critical to achieving organizational resilience. Transformation Insights MORE
Since the start of February this year, the Fed has expanded its balance sheet by more than $2.4 To put that in context, the Fed was created in 1913, and its total balance sheet assets only reached $2.4 trillion in assets, but only 2 months to achieve the same amount of balance sheet expansion this year. What does Fed balance sheet expansion mean for the US economy? MORE
reader Dave, a friend, noted that as the Fed jacked up its balance sheet, velocity has mirrored the curve to the downside. Dave asks " Can''t an argument be made that since much of the banking system is really insolvent, that the Fed increasing its balance sheet is necessary? " "Necessity" This depends on what you mean by "necessary" and more importantly, who gets to decide. In response to Will Prices Rise Significantly When Velocity of Money Picks Up? MORE
If there are debts owed by each organization, then the M&A process may increase the total balance sheet debt of the combined company. If the bidding company used debt to finance the acquisition, this will further increase the total balance sheet debt of the combined entity, which can increase the risk financial distress and bankruptcy. Many consulting, corporate strategy, and corporate development roles require the interviewee to go through an M&A case study. MORE
The average value of housing on young families’ balance sheets remains about 35 percent below its 2007 level, the St. These changes going on with individual balance sheets could have impacts on the whole economy,” said William Emmons, an economist at the St. Housing Crash Continues to Overshadow Young Families'' Balance Sheets And so here we are. MORE
Regulation, product complexity, and insurers’ large balance sheets have kept digital attackers from insurers’ gates. That is changing, but in ways incumbents should embrace. They can flourish in the digital age—if they move swiftly and decisively. Our Insights MORE
This month we discussed the Fed rate hike, the State of Illinois, loan creation, autos, housing, the yield curve, the Fed’s balance sheet, and GDP prospects. Once a month I get together with Gordon Long for a videocast of the month’s hot news topics. The video is about a half-hour long. Mike “Mish” Shedlock. Economics MORE
We've never had a moment in which so much cash will be sitting on corporate balance sheets. Tax reform actually changes everything. The most strategic-minded executives will see this opportunity as a watershed moment to reevaluate how they allocate cash MORE
At the Fed, the debate is over normalization of the balance sheet. The ECB is still addicted to a balance sheet build-up. In contrast, the ECB is still addicted to a balance sheet build-up. The Fed has already finished tapering. But i. But internal feuding has picked up with Germany and the hawks on one side and doves on the other. more…). Economics MORE
Unfortunately, companies in the lean community don’t seem to take much note of, or try to copy these experiments, probably because the benefits aren’t reflected on the income statement or balance sheet. In the space of two weeks, the New York Times and the Wall Street Journal both ran articles on the productivity benefits of reduced work hours. The WSJ introduced us to the workers at Rheingans Digital Enabler in Germany, who only put in five-hour days, for a workweek of 25 hours. MORE
Merits of Not Shrinking the Balloon When the Fed first launched QE, they stated they had the "tools" necessary to shrink their ballooning balance sheet. Once the Federal Reserve lifts interest rates from near zero, likely this week, the focus will turn to the other legacy of the crisis-era policies: the Fed's swollen balance sheet. A " permanently higher balance sheet. MORE
But combining analytics with a holistic approach to balance sheet management can help capture the opportunity and improve performance. For many companies, managing financial resources is a challenge. Risk Insights MORE
Fed Balance Sheet vs. S&P 500 I was playing around with some ideas on the St Louis Fed "Fred" database and came up with this. Mike "Mish" Shedlock Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. MORE
Forgiving a financial debt costs your balance sheet. Money owed accrues interest. Banks and credit card companies thrive on this. The borrower gets to keep using the money, and the lender ends up with more in the end. Apologies owed, on the other hand, accrue nothing whatsoever of value, to either side. Forgiving an owed apology frees you to be generous again MORE
Balance sheet reduction hasn’t started yet, nor did the Fed even say when it would start. Once balance sheet reduction starts, the cap will be $10 billion a month rising to $50 billion a month, on a schedule not posted. In addition to hiking today, the Fed announced its Plan to Shrink Asset Holdings Beginning This Year. Since the Fed will announce the start date in advance, its eye would appear to be focused on December. MORE
Central Bank Policy Rates Current Rates Bank of England: 0.50% Bank of Japan: 0.10% Fed: 0.00%-0.25% (currently 0.14%) ECB: 0.05% Central Bank Balance Sheets Three Questions Other than asset bubbles, what do we have to show for this? When do asset sheet balances approaching 100% of GDP matter? Reader Gary emailed a link to JP Morgan's Quarterly Market Guide. Here are a pair of charts from page 19 that caught my eye. MORE
Business Strategy balance sheet business planning cash flow statement financial statements income statementWhen you run your own small business, it can be difficult to keep an objective distance from what you do. Bills come in, sales go out, you have your day-to-day goals and you watch the curvy line of profit and loss make its inexorable progress throughout the financial year. MORE
Regulation, product complexity, and insurers’ large balance sheets have kept digital attackers from insurers’ gates. That is changing, but in ways incumbents should embrace. They can flourish in the digital age—if they move swiftly and decisively. Our Insights MORE
He told me something that’s stuck with me when he said how as an operator he was concerned with the profit and loss statement but as a deal person he found an appreciation for the balance sheet and its importance. The balance sheet tends to get overlooked by many businesspeople, sellers, and buyers, which is a shame. The balance sheet is filled with information, some of which is: How does the company manage its cash flow and what level of working capital is needed? MORE
As expected the Fed will begin balance sheet reduction in October. The Fed penned in one more rate hike in December as its FOMC statement shows the hurricanes will have no lasting effect on anything. more…). Economics MORE
Financing a green agenda is also a commercial imperative—but specialized skills are needed to protect balance sheets. More than regulatory pressure is driving banks to manage climate risk. Risk Insights MORE
We've never had a moment in which so much cash will be sitting on corporate balance sheets. Tax reform actually changes everything. The most strategic-minded executives will see this opportunity as a watershed moment to reevaluate how they allocate cash MORE
Balance Sheet Related Topics McKinsey
MARCH 19, 2020
But combining analytics with a holistic approach to balance sheet management can help capture the opportunity and improve performance. For many companies, managing financial resources is a challenge. Risk Insights
MishTalk
SEPTEMBER 20, 2017
As expected the Fed will begin balance sheet reduction in October. The Fed penned in one more rate hike in December as its FOMC statement shows the hurricanes will have no lasting effect on anything. more…). Economics
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Martinka Consulting
MARCH 22, 2017
He told me something that’s stuck with me when he said how as an operator he was concerned with the profit and loss statement but as a deal person he found an appreciation for the balance sheet and its importance. The balance sheet tends to get overlooked by many businesspeople, sellers, and buyers, which is a shame. The balance sheet is filled with information, some of which is: How does the company manage its cash flow and what level of working capital is needed?
MishTalk
DECEMBER 14, 2015
Merits of Not Shrinking the Balloon When the Fed first launched QE, they stated they had the "tools" necessary to shrink their ballooning balance sheet. Once the Federal Reserve lifts interest rates from near zero, likely this week, the focus will turn to the other legacy of the crisis-era policies: the Fed's swollen balance sheet. A " permanently higher balance sheet.
MishTalk
AUGUST 7, 2013
Balanced Budget Ammendment Sign the Balanced Budget Petition. Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. The risk premiums of risky securities have become unsustainably compressed in the process, and the Feds balance sheet has metastasized to $3.5 The Fed would probably show an insolvent balance sheet today if its holdings were actually marked-to-market. MISHS.
MishTalk
JUNE 30, 2016
Deutsche Bank shares have collapsed to lows deep under crisis lows and collapse of Lehman in the Great Financial Crisis. … Continue reading → Economics
|
MishTalk
JANUARY 26, 2016
Fed Balance Sheet vs. S&P 500 I was playing around with some ideas on the St Louis Fed "Fred" database and came up with this. Mike "Mish" Shedlock Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
MishTalk
JULY 26, 2017
In addition to its standard boilerplate about inflation, the Fed stated it would begin balance sheet normalization “relatively soon” Here is the full Text of the FOMC Press Release. As expected, today’s FOMC meeting came with zero surprises. more…). Economics
MishTalk
JUNE 14, 2017
Balance sheet reduction hasn’t started yet, nor did the Fed even say when it would start. Once balance sheet reduction starts, the cap will be $10 billion a month rising to $50 billion a month, on a schedule not posted. In addition to hiking today, the Fed announced its Plan to Shrink Asset Holdings Beginning This Year. Since the Fed will announce the start date in advance, its eye would appear to be focused on December.
MishTalk
OCTOBER 8, 2015
Current Liabilities Cash Much Smaller Than You Think I don't often dive into balance sheets, but did so after reading a Market-Watch opinion by Brett Arends. billion in “off-balance-sheet” liabilities. If “off-balance-sheet” is not included in my totals, then subtract another $31.5 Yes, companies in general could spend their reported cash numbers, but to do so would further leverage their balance sheets with debt.
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MishTalk
APRIL 4, 2014
The average value of housing on young families’ balance sheets remains about 35 percent below its 2007 level, the St. These changes going on with individual balance sheets could have impacts on the whole economy,” said William Emmons, an economist at the St. Housing Crash Continues to Overshadow Young Families'' Balance Sheets And so here we are.
|
MishTalk
JULY 5, 2017
The Fed also firmed up its Balance Sheet Normalization Plans. The Fed released the Minutes of June 13-14 FOMC meeting today. The minutes show an overreliance on regional report soft data and consumer confidence measures instead of hard data measures. more…). Economics
Tom Spencer
AUGUST 12, 2017
Business Strategy balance sheet business planning cash flow statement financial statements income statementWhen you run your own small business, it can be difficult to keep an objective distance from what you do. Bills come in, sales go out, you have your day-to-day goals and you watch the curvy line of profit and loss make its inexorable progress throughout the financial year.
McKinsey
NOVEMBER 5, 2019
Empowering the finance organization to take decisive action to strengthen the balance sheet is critical to achieving organizational resilience. Transformation Insights
McKinsey
JUNE 2, 2020
Financing a green agenda is also a commercial imperative—but specialized skills are needed to protect balance sheets. More than regulatory pressure is driving banks to manage climate risk. Risk Insights
McKinsey
JANUARY 7, 2020
Having a resilience plan in place can set a company apart from its competitors while simultaneously improving cash flow and strengthening the balance sheet. Transformation Insights
Consultant Ninja
MARCH 31, 2009
Heres my understanding of the current TARP/TARPII/PPIP/etc plans: The major "sick" banks wont lend to businesses, because their balance sheets are tied up with bad assets that they cant sell. I realize that is a gross simplification, but if the gist is right, it leads me to a simple observation: Why doesnt the government just give long-term loans to the healthy banks (building up their balance sheets) so that they can loan to businesses? skip to main | skip to sidebar.
McKinsey
MARCH 9, 2017
Regulation, product complexity, and insurers’ large balance sheets have kept digital attackers from insurers’ gates. That is changing, but in ways incumbents should embrace. They can flourish in the digital age—if they move swiftly and decisively. Our Insights
MishTalk
JUNE 19, 2017
It’s a $31 Billion Balance Sheet Hole That Keeps Growing. GE has the largest pension shortfall in the S&P 500. more…). Economics
MishTalk
JULY 8, 2017
At the Fed, the debate is over normalization of the balance sheet. The ECB is still addicted to a balance sheet build-up. In contrast, the ECB is still addicted to a balance sheet build-up. The Fed has already finished tapering. But i. But internal feuding has picked up with Germany and the hawks on one side and doves on the other. more…). Economics
MishTalk
JULY 21, 2016
Last week the ECB reported that its balance sheet Expanded by €11.26 billion to €3.249 trillion. What is the makeup? … Continue reading → Economics
McKinsey
MAY 8, 2017
Regulation, product complexity, and insurers’ large balance sheets have kept digital attackers from insurers’ gates. That is changing, but in ways incumbents should embrace. They can flourish in the digital age—if they move swiftly and decisively. Our Insights
Strategy+Business
MAY 13, 2018
We've never had a moment in which so much cash will be sitting on corporate balance sheets. Tax reform actually changes everything. The most strategic-minded executives will see this opportunity as a watershed moment to reevaluate how they allocate cash
Tom Spencer
MAY 2, 2020
Since the start of February this year, the Fed has expanded its balance sheet by more than $2.4 To put that in context, the Fed was created in 1913, and its total balance sheet assets only reached $2.4 trillion in assets, but only 2 months to achieve the same amount of balance sheet expansion this year. What does Fed balance sheet expansion mean for the US economy?
MishTalk
JUNE 21, 2017
This month we discussed the Fed rate hike, the State of Illinois, loan creation, autos, housing, the yield curve, the Fed’s balance sheet, and GDP prospects. Once a month I get together with Gordon Long for a videocast of the month’s hot news topics. The video is about a half-hour long. Mike “Mish” Shedlock. Economics
Strategy+Business
MAY 13, 2018
We've never had a moment in which so much cash will be sitting on corporate balance sheets. Tax reform actually changes everything. The most strategic-minded executives will see this opportunity as a watershed moment to reevaluate how they allocate cash
Tom Spencer
SEPTEMBER 19, 2020
If the firms don’t have a strong balance sheet, if they foresee a potential cash flow problem, or if they have clients in particularly hard hit industries, I’d be concerned. Reading Time: 3 minutes. The coronavirus epidemic has rattled the planet.
BCG
APRIL 14, 2016
These mergers will produce tough competitors with diversified portfolios, sturdy balance sheets, greater scale, and advanced capabilities, including consumer engagement, provider collaboration and informatics, population management, and digital channels. Article Thursday, April 14, 2016. Of all the challenges faced by the Blue Cross and Blue Shield Plans, few are as significant as the likely mergers of the big US health care companies.
Seth Godin Blog
MARCH 13, 2015
Forgiving a financial debt costs your balance sheet. Money owed accrues interest. Banks and credit card companies thrive on this. The borrower gets to keep using the money, and the lender ends up with more in the end. Apologies owed, on the other hand, accrue nothing whatsoever of value, to either side. Forgiving an owed apology frees you to be generous again
Markovitz Consulting
NOVEMBER 19, 2019
Unfortunately, companies in the lean community don’t seem to take much note of, or try to copy these experiments, probably because the benefits aren’t reflected on the income statement or balance sheet. In the space of two weeks, the New York Times and the Wall Street Journal both ran articles on the productivity benefits of reduced work hours. The WSJ introduced us to the workers at Rheingans Digital Enabler in Germany, who only put in five-hour days, for a workweek of 25 hours.
Seth Godin Blog
MARCH 29, 2019
We can learn to read a balance sheet and we can get sophisticated about long-term decision making. Intellectual horsepower is overrated. “I’m too stupid to do that,” isn’t helpful and it’s probably not true. We’re capable of learning Photoshop, We can figure out the arithmetic behind our analytics. We can follow a nuanced discussion of strategy. If we’re being honest, the real reason we don’t do this work isn’t that we’re stupid.
Tom Spencer
OCTOBER 26, 2019
If there are debts owed by each organization, then the M&A process may increase the total balance sheet debt of the combined company. If the bidding company used debt to finance the acquisition, this will further increase the total balance sheet debt of the combined entity, which can increase the risk financial distress and bankruptcy. Many consulting, corporate strategy, and corporate development roles require the interviewee to go through an M&A case study.
Tom Spencer
AUGUST 26, 2013
Building on information provided in Management Consulting: A Guide to the Profession , I highlight three approaches that a consultant can use when performing a valuation: Balance sheet valuation; Market based valuation; and. “Price is what you pay. Value is what you get.” ” ~ Warren Buffett.
MishTalk
MARCH 28, 2014
reader Dave, a friend, noted that as the Fed jacked up its balance sheet, velocity has mirrored the curve to the downside. Dave asks " Can''t an argument be made that since much of the banking system is really insolvent, that the Fed increasing its balance sheet is necessary? " "Necessity" This depends on what you mean by "necessary" and more importantly, who gets to decide. In response to Will Prices Rise Significantly When Velocity of Money Picks Up?
MishTalk
APRIL 17, 2015
Bernanke also made the case in his presentation for keeping the Fed’s balance sheet big in the aftermath of the financial crisis. [Is Most other major central banks have permanently large balance sheets and are able to implement monetary policy without problems,” he said. Bernanke said he was not making a recommendation about how big the balance sheet ultimately should be.
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