Category: Economy

Economy, regulation

Yamato Life goes bankrupt due to bad management

Colin Henderson

In a dramatic similarity to HBOS, Bradford & Bingley, to name just two, the Japanese Life Insurer Yamato was caught out investing in securities and losing out in the crash.  The similarity lies in the classic example of a financial services company getting caught out of its bread and butter business, trying to build profits in other ways, and taking shortcuts. Japanese insurer Yamato Life collapses Government officials tried to portray the bankruptcy as a special case. Yamato Life’s failure “is the result mainly of the company’s unique business model, whereby it covered its high operational costs with returns from … Continue reading Yamato Life goes bankrupt due to bad management

Economy

"If you can keep your head when all about you are losing theirs"

Colin Henderson

“If you can keep your head when all about you Are losing theirs and blaming it on you; If you can trust yourself when all men doubt you, But make allowance for their doubting too; . . . If you can meet with Triumph and Disaster And treat those two impostors just the same . . . Yours is the Earth and everything that’s in it.”   —  (Joseph) Rudyard Kipling If ever there was a time for Central Banks and governments to listen to Kipling, now is the time.  You can’t stop a panic – let the market wake … Continue reading "If you can keep your head when all about you are losing theirs"

Economy

World on the edge | Economist

Colin Henderson

The Economist is often quite pithy in their commentary but thought this weeks leader out today, is worth storing for the record books.  The general theme is that in looking beyond the bailout expect worse to come, as we peer over the brink.  Note the reference to the US Senate not being used to being second guessed, but this time that has occurred conclusively World on the edge | Economist Continue reading World on the edge | Economist

Economy3 Comments

"I truly fear for our economy and our system the next several days"

Colin Henderson

This from a “30year veteran of the bond market. My career began at the Open Market Desk of the Federal Reserve Bank of New York and the significant majority of the subsequent years were spent  trading (Treasuries) or selling high grade fixed income product for some of the largest primary dealer firms” The situation is grim: Endgame?, by Tim Duy: News is flowing in faster than the ability to process the implications.  When I went to bed Saturday night, the only sure thing looked like the liquidation of Lehman Monday morning.  A scant 24 hours later, to that liquidation is … Continue reading "I truly fear for our economy and our system the next several days"