Your Company Needs a More-Radical Board of Directors

Harvard Business

My guess is that while a poor balance sheet might cause restless sleep, it’s the thought of an incorrectly reported balance sheet that brings on night terrors. I’m not against benchmarking and norming.

China Interest Rate Crisis Continues: 7-Day Interest Rate Doubles to 10% in One Week; China Bans Words "Cash Crunch"

MishTalk

Rates continued to surge on Monday, however, in China’s money markets — a key source of short-term funding for commercial banks and also for financial institutions engaged in risky, off-balance-sheet shadow lending. The benchmark Shanghai Composite Index fell 2 per cent on Friday, its ninth consecutive day of losses and its longest losing streak in 19 years. A "cash crunch" is on in China. But don''t call it that, because China banned use of the term last week.

Monetarists Accuse ECB of "Dangerous Game of Chicken"; The REAL Dangerous Game

MishTalk

In addition to holding its benchmark rate at 0.25%, the ECB also left the rate it pays on bank deposits unchanged at zero. The balance sheet of the European Central Bank has fallen by €553bn over the past year as banks repay money that they no longer want, either because ECB funds are too costly in a near-deflationary world or because lenders are being compelled by regulators to shrink their books.

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. Put differently, under limited policy effectiveness, the balance between benefits and costs of prolonged monetary accommodation has deteriorated over time.

Swiss Bank Hits Customers With Negative Interest Rates; Crazy? What About Velocity?

MishTalk

With its balance sheet totalling nearly 1.6 and Bank of England Governor Mark Carney said he could now cut the benchmark rate below the current 0.5 Economic Distortions That's actually a balanced synopsis by Bloomberg as far as it went.

Jeremy Grantham 1999, Jeremy Grantham Today: "Over Next Seven Years, Market Will have Negative Returns"

MishTalk

The next bust will be unlike any other, because the Fed and other centrals banks around the world have taken on all this leverage that was out there and put it on their balance sheets. We produced pretty good numbers, but they’re way behind the benchmark. It is extremely difficult to sit out a party. Do so and you lose both clients and assets. Invest in unloved and undervalued assets and you do even worse. But what is the alternative? Get drunk like everyone else?

Reflections on 2013; What's Important, What's Not? What's Ahead?

MishTalk

Had I suggested in 2007 that the Fed balance sheet expansion of $75 billion a month would have been considered "tightening" people would have thought I was nuts. According to Yahoo!News News the top story of the year was the Jodi Arias trial. I confess. I never heard of her.

You Don’t Need to Be a Silicon Valley Startup to Have a Network-Based Strategy

Harvard Business

For most companies intellectual property is something that sits on their balance sheet. Or it could be indirectly, as Opower does in giving people benchmarking data on energy usage to foster conservation and efficiency. The success of platform companies like Airbnb, Amazon, and Netflix has led to envy bordering on despair for their competitors. When we asked one successful online retailer “How do you compete with Amazon?”