Bloomberg – Money and payment systems, the underpinnings of all financial activity, are still traditional in one respect: They rely on central third parties — banks — to record and vouch for transactions.
Digital currencies dispense with this. They create a decentralized record — a “distributed ledger” — which allows buyers and sellers to interact directly. more> http://tinyurl.com/mx4unrg
Posted in Banking, Broadband, Business, Economic development, Economy, Education, Net, Regulations, telecom
Tagged Banking reform, Business improvement, Capital, Credit, Currency, Government, Internet, Regulations, Technology, United States
By Barry Ritholtz – Assets purchased with cheap and widely available credit become worth significantly less once the bubble bursts. But the debt remains.
All of that leverage used to purchase all of those assets — regardless of whether it’s subprime mortgages or dot-com stocks — sticks around.
Hence, a post-credit-crisis recovery is dominated not by the release of pent-up demand, but by massive corporate, household and government deleveraging. more> http://tinyurl.com/pryw54s
Posted in Banking, Business, Economic development, Economy, Education, History, Regulations
Tagged Banking reform, Business, Capital, Credit, Financial crisis, Industrial economy, Regulations, United States
By Matt Phillips – Auto sales are booming—but that’s largely because it’s so easy for consumers to get loans.
In a consumption-dominated economy like the US, consumers need to spend.
And if consumers don’t have the wages to spend, the only way to keep the consumption engine going is by extending debt to people with extremely shaky finances.
That’s a recipe for a future full of financial crises. more> http://tinyurl.com/mf2obd3
Posted in Banking, Business, Economic development, Economy, Education, History, Leadership, Media, Regulations
Tagged Business, Capital, Credit, Financial crisis, Government, Industrial economy, Jobs, Leadership, Regulations, United States
By Matt Levine – Investment banking, as a business, consists of doing tons of free work — tons of terrible, free work — for lots of clients in the hope of getting a few big merger or IPO mandates.
Some clients cheerfully milk this without ever paying off. For JPMorgan, Forest Labs and Comcast paid off. With windfalls! Or with, you know, the fees that JPMorgan earned by working for them for years and then advising on and financing their mergers, whatever.
There’s a lot of this sort of thing in the financial industry: You work or pay to obtain a bunch of out-of-the-money call options, and then you hope that some of them pay off. more> http://tinyurl.com/kmw3ru6
Posted in Banking, Business, Economic development, Economy, Leadership
Tagged Business, Congress Watch, Credit, Debt, Industrial economy, Investment banking, Leadership, Organization
By Mike Patton – Only two days before Christmas in 1913, deep into the night when many legislators had already left for the holidays, Congress passed the Federal Reserve Act, creating a “non-governmental” central bank – a bankers bank if you will – and charged it with the responsibility of controlling the nations monetary system.
Here’s the harsh reality. At some point, the Fed will have to start removing some of this excess capital from the system. This will be a difficult task. If they sell bonds too fast, it could cause bond prices to plummet. Moreover, any change in the Fed’s “easy money policy” would signal less liquidity for the stock market which would cause stock prices to collapse. more> http://tinyurl.com/n2tzx4w
Posted in Banking, Business, Economic development, Economy, History, Leadership, Media
Tagged Banking reform, Business, Capital, Credit, Currency, Debt, Jobs, Monetary policy, United States