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
The New York Times - metered paywall - 4 Aug 2018
It is surprising that this issue is not more at the forefront. The US stock market is half the size of its mid-1990s peak, and 25 percent smaller than it was in 1976. As a new report explains, “this is troubling for the economy, for innovation and for transparence”. This phenomenon may also be partly responsible for certain trends like fewer initial public offerings, smaller companies being swallowed by the giants, and many companies remaining private for longer (reads in 6-7 min).
Published in Weekly selection 17 August 2018