Brexit: non-market breakdown…

Here’s a riddle.  If the solution to market-breakdown is regulation, what is the solution to non-market breakdown? If ever there was a demonstration of the inability of Government to plan, decide and execute a simple instruction it is Brexit. The UK referendum instructed the Government to leave the EU cartel.  The rights and obligations that […]

PoW, PoS or what for the Blockchain?

“You can’t always get what you want, but if you try real hard, you can get what you need.” The Rolling Stones   The Blockchain might want to be able to function autonomously and anonymously, but it can’t always get what it wants. The distributed ledger Blockchain technology is a decentralised method for recording ownership […]

The US-China trade war ‘Punch and Judy show’ is about to end

The US- China trade war is a short-term phenomena that will correct itself despite the warnings of some.  The pessimists cite the classic Prisoner’s Dilemma model  as the reason a trade war will have long-term consequences.  This is wrong… In the Prisoners Dilemma, two felons are confined separately and interrogated.  They are offered the choice […]

Pragmatism and compromise in Brexit

“In the referendum on 23 June 2016 – the largest ever democratic exercise in the United Kingdom – the British people voted to leave the European Union… …But to do so requires pragmatism and compromise on both sides.” UK PM Theresa May in the foreword to the White Paper on the Future of the UK’s […]

Surviving the Value Quicksand

Value investing refers to buying stocks at less than their intrinsic value. Warren Buffett is considered an extremely successful value investor. While Buffett continues to perform well, many of his value investing counterparts have struggled over the last five years as technology stocks, in particular, have attracted investment capital. Value Guru David Einhorn, for instance, […]

From Communism to Militaryism to Money Worship

A diplomat is a man who thinks twice before saying nothing” – WInston Churchill “He would be there, he would be running his country, his country would be very rich.” – Donald Trump 17 May 2018 on his vision for Kim Dong-Un’s role in a future North Korea Kim Il-Sung established the modern North Korea […]

Coase in CryptoLand : a convertible ecurrency is born

Facebook makes its money by selling its users’ data to advertisers without compensating users for that information. In micro-economics this is labelled a ‘free ride’ and ‘an externality’ and is an example of market breakdown. Markets have a habit of rectifying themselves and, indeed, Ronald Coase won the Nobel prize for discovering that markets will […]

Out damn Spotify!

“Without underwriters, Spotify shares won’t debut with a price based on investor feedback, with buyers lined up.” Bloomberg January 4, 2018. Spotify, the digital music platform, intends to list publicly this quarter. Instead of an Initial Public Offering, where the company simultaneously lists its shares and raises capital at the same time, Spotify intends to […]

Did Crypto’s crash or did they just have a bad hair day?

October 18 1987 goes down as the worst day in the US Stock Market when the S&P500 lost 22.6%. This was nearly twice the decline experienced in 1929’s ‘Great Crash’. The panic that followed occupied the financial pages for months. On January 16, 2018, the CryptoCurrency CCI30 index of the 30 most traded currencies fell […]

Throwing the FinTech baby out with the Crypto-bathwater

I remember walking back from a conference at the European Central Bank in late 2008 accompanied by the then Head of Risk Management for the ECB. We discussed what the long-term impact of the Global Financial Crisis that we were experiencing was likely to be. My comment was that regulation would take centre stage post-crisis, […]