Tag: Finance

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Economic downturns testing

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Tyler Beck Goodspeed, a top economist, analyses economic contradictions over the last four centuries, explains why recessions start, how long they last, and how to avoid them in the first place. Do recessions end on their own, or do they require external intervention? Does a recession in one country mean the rest of the world will follow?  Are we in recession now? Contrary to popular perception, recessions are not the inevitable bust that follows an unsustainable boom, and they do not operate like wildfires that clear out economic deadwood. Recessions are caused by adverse shocks like war and energy price … Continue reading Economic downturns testing

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Global purchasing power

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2, 500 years of international currencies the future of the U.S. dollar as well as crypto and central bank digital currencies are revealed. Recently the US dollar has fallen more than 10 per cent against other major currencies since the beginning of 2025, and this especially has questioned the its future, that how long can it remain the world’s premier currency and should it fall what will replace it? Doubts about the international dominance of the dollar are only growing amid worries about tariffs, political dysfunction and fraying international alliances. In Money Beyond Borders, Barry Eichengreen, a leading authority on … Continue reading Global purchasing power

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Insider’s guide to boom-and-bust

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Lloyd Blankfein, head of an institution legendary for its culture of success writes a candid memoir of global leadership in an age of extreme turbulence. Blankfein is quiet scary smart about people, markets, and life generally, as his 10, 000 Small Businesses idea proved to be a huge winner. During the 2008-2009 financial crisis, Lloyd acted decisively and he tells the story of what happened with unique insights. When Blankfein was attacked as a Wall Street fat cat, he had to smile, thinking of his precarious childhood in the notorious public housing projects of East New York, Brooklyn, and attending … Continue reading Insider’s guide to boom-and-bust

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Booms and busts covering six decades

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Jeremy Grantham entered the investment business in the ’60s, when he brought the thrifty Quaker values and Yorkshire Independence he had been raised with. While other money managers were focused on blue chip stocks, he studied the stock market history and constructed by hand the first indices for small-cap and value stocks. Charting their ebb and flow, he could see clearly the powerful force that would become central to his investment philosophy: mean reversion, “the heartbreaking principle that good times always revert back to more boring, more ordinary times.” In the early ’70s Grantham was a pioneer of index investing. … Continue reading Booms and busts covering six decades

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How to restore the UK economy, drive prosperity to elevate living standards

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Prosperity Through Growth by the US economist Dr Arthur B Laffer, inventor of Laffer Curve (his eponymous curve); policy campaigner  Matthew Elliott, businessman and former chief executive of Vote Leave campaign, Michael Hintze a high profile asset manager, and founder of the Centre for Economics and Business Research, Douglas McWilliams, although is a would-be Conservative idea for growth, who has no answer to the populist right, but the philosophy is a collection of old ideas, similar to what Keith Joseph suggested for Margaret Thatcher in the 1970s. Their policy begins by setting out principles of ideal economic policy- the “North Star” … Continue reading How to restore the UK economy, drive prosperity to elevate living standards

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History repeats itself: The tale of power, psychology and seductive illusion

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In 1929, Andrew Ross Sorkin, the author of Too Big to Fall -the definitive history of the 2008, banking crisis, follows a similar people-centred recipe to retell a much older tale of financial hubris and nemesis: the great crash that began in 1929 in the US but which when stretched out in waves of repeated panic for several years and across many countries. Sorkin reveals the tale of its ugly aftermath, as panic moved from Wall Street to Main Street with the Great Depression of the 1930s and the sweeping regulatory response to these cascading crises. In 1929, the world … Continue reading History repeats itself: The tale of power, psychology and seductive illusion

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Imperfect lending decisions

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Ray Dalio, who founded Bridgewater Associates  five decades ago and one of the greatest investors of our times who anticipated the 2008 global financial crisis and the 2010-12 European debt crisis, shares for the first time his detailed explanation of what he calls the “Big Debt Cycle”.  Understanding this cycle is critical for helping policymakers, investors, and the general public grasp where we are and where we are headed with the debt issue. Dalio’s model points towards surprisingly straightforward solutions for dealing with the debt problems, that the US, Europe, Japan, and China face today. Global macro investors make bets on countries, … Continue reading Imperfect lending decisions

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Updating modern corporate finance

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“Stagflation” of the 1970s – the improbable combination of high unemployment and runaway inflation-  proved painful and protracted, but explains the U.S. stock market’s remarkable forty-year run of 12 per cent average annual returns since then. Why is Japan still mired in a decades-long recession- and the Chinese economy in a tailspin? What account for the resilience of U.S. stock and labour markets in the wake of the Covid-19 pandemic and in the face of the Fed’ record interest rate hikes? Donald H Chew, editor of the journal of Applied Corporate Finance, traces the revival moment of America’s corporate and stock … Continue reading Updating modern corporate finance

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Seven turbulent decades of Global finance

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Professor of economist at Harvard and former chief economist at the IMF, Kenneth Rogoff explores the global rise of the U.S. dollar and reveals why the future stability is far from assured and argues that America’s currency might not have reached today’s lofty pinnacle without certain amount of good luck. The sharp sell-off of US Treasury bonds following Trump’s April 2 announcement of America’s highest tariff wall for a century confirmed Rogoff’s view that the recently prevailing belief that real interest rates will be “lower forever” is a dangerous myth. He sees America’s, and hence the dollar’s, “Achilles heel”, as … Continue reading Seven turbulent decades of Global finance

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Greed, lies and Veil of Secrecy

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Former Wall Street Journal reporter, editor and Bloomberg’s investigative journalist Duncan Mavin’s Melt Down exposes a crisis year for Credit Suisse’s 2023 implosion, with a lucid account of how greed and complacency of bosses and employees destroyed the bank. For centuries Swiss banks have served the globe’s wealthiest individuals, employing a strict culture of anonymity and gaining massive wealth in the process. In March 2023, bank runs and panic among depositors of smaller US lenders spread to customers of Credit Suisse. As the crisis deepened Credit Suisse remained highly solvent across a reassuringly wide range of metrics, but said it … Continue reading Greed, lies and Veil of Secrecy