Bailout of the banking system create social tension. Eventually, bailouts introduce so much risk into the system that failures and bailouts become too costly for the society to bear, government creates draconian rules trying to prevent them in future, which in turn kills innovation and the formation of new businesses, and the result is a stagnating economy.
The Silicon Valley Bank collapse may be an extreme event, but it gives us a preview at a 100x magnification of what other banks are facing.
This is part one of the winter seasonal letter I wrote to IMA clients, sharing my thoughts about the economy and the market. I tried something I’ve never done before.…
After a recent trip to India, the contrast with Switzerland was stark. But there are hidden costs of living in Switzerland as well.
The CHTR decline may have kicked us in the face, but our extensive research is telling we’re not wrong about our Charter investment. Here’s why:
My daughter Hannah and I went to a trip to India. We visited a small part of this large country, the most populous in the world.
Investors who own index funds have likely strapped themselves into a giant stock market roller coaster which, to this point, has only gone up.
Value investors have had a miserable time over the past years. Now that our investing principles are finally being vindicated, you’d expect us to gloat. But Herr Schadenfreude is not a friend of ours.
Crypto currency was touted as antidote to central banking. But with its own flaws, is the system itself to blame for this crypto market crash?
Recessions are like forest fires – small ones are healthy for the forest. However, the longer you suppress fire, the more dead material the forest accumulates. Eventually, when it does pay a visit, it is more devastating and its effects are more long-lasting.The recession that is coming could be a big fire.