Energy, credit and big picture change

This statement from hedge fund manager Hamid Hakimzadeh bears serious reflection. The global financial system is critically predicated on future energy supplies meeting projected demand. The credit pyramid presumes that future expansion is adequate collateral for today’s debt. The emerging reality on energy undermines this assumption, which in turn erodes the valuation of wide variety …
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The non-bank banking crisis, and a solution for the future

Andrew Hunt has pointed out that many UK banks have been behaving as if they were non-banks. This is likely to have been the case in America and elsewhere too. Hunt points out that: the problems in the UK banking system have arisen because the banks have, in effect, been behaving as though they were …
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OpenEco – business tools to track GHG

OpenEco is a new global on-line community that provides free, easy-to-use tools to help participants assess, track, and compare business energy performance, share proven best practices to reduce greenhouse gas emissions, and encourage sustainable innovation. Akin to social networks, OpenEco aims to help build support for carbon-reduction strategies though sharing information among companies, government institutions …
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Fast and loose culture of top finance houses.

A recent article in the NYT describes how financial analysts are opting to learn on the job, rather than do MBA’s.  While the article is largely anecdotal, what is apparent is that the culture of Wall Street encourages a cut-throat approach to business.  While you can make more money than you need (maybe even more …
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Japanese housewives trading FX

Its not just the professionals that have benefited from the yen carry trade.  Japanese housewives have been moonlighting as currency speculators too.  Unfortunately, in the past couple of months the reality that there is no risk free investment has hit them hard, often wiping out savings in a few weeks because of leveraged/margin positions.  This …
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A different scale of leverage has accelerated our progress and imbalances

As has been discussed over the past months, the economic imbalances around the world have grown beyond normal measures for some years now.  Trade imbalances, government debt, consumer spending have all been beyond expectations in the US and other mature economies.  With the tremors of collapse touching many since the cracks in US housing started …
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Case studies in green portfolios

The September issue of Sustainable Business‘s Progressive Investor discusses three green portfolios describing the manager’s rationale and an analysts’ evaluation in each case.  It is a useful starting point for building your own green portfolio.  If you are not US based, it still offers insight in to the trade-offs you’re likely to have to make …
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Stop giving drugs to infants

Stop giving drugs to infants is the thrust of recommendations made in the US by safety experts for the Food and Drug Administration who urged an outright ban on over-the-counter, multisymptom cough and cold medicines for children under 6.  This recommendation is underpinned by the recognition that warnings about their use on infants just do …
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Gaining calories impulsively

IHL consulting polled 1,000 shoppers in the US on what they grab while waiting in the check-out line, from nothing to chocolates. I have a regular battle with my sweet tooth and children while paying for groceries because of the raft of delights staring me in the face. None of those sweets are good for …
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