The New York Times - metered paywall - 18 Sep 2018
The editorialist argues that in their campaign to contain the risks that caused the Great Recession, central bankers may have planted the seeds for the next global economic crisis. Over the past 10 years, the world’s largest central banks have expanded their balance sheets from less than $5 trillion to more than $17 trillion, with much of the newly printed money finding its way into the financial markets where it often follows the path of least regulation. Within the $290 trillion global financial markets, there are hundreds of new risks, pools of potentially troubled debt. The most troubling are corporate borrowers and so-called non-bank lenders all over the world (reads in 5-6 min).
Published in Weekly selection 28 September 2018
Quartz - 26 Aug 2018
A new book explains that the financial conditions and innovations that gave rise to the first truly global crisis, in 1825, are in many ways similar to the conditions that led Turkey and Argentina to their current precarious states. The big lesson from history is how quickly risk aversion melted away during a period of easy money, and how fear returned just as quickly when money started tightening (reads in 7-8 min).
Published in Weekly selection 2 September 2018
The New Yorker (metered paywall) - 27 Aug 2018
This is long article (20 min+) that tackles an important subject (activist investment) but reads like a novel! Singer, the head of Elliott Management, has developed a uniquely adversarial, and immensely profitable, way of doing business. His style is controversial: critics say it forces companies to lay off workers and curtail investment in new products in favor of schemes that boost short-term profits, while proponents view it as a useful source of pressure on CEOs to reduce waste and manage their companies more effectively. Read on to understand why he is “The World’s Most Feared Investor.”
Published in Weekly selection 25 August 2018