EU

Nicolas Sarkozy opening plenary | Davos WEF Annual meeting 2010

Colin Henderson

I finally got around to watching the full Sarkozy opening to WEF.  It is both controversial and interesting.  He continues the theme that ‘anglo saxon’ financial models are the problem and makes some good points that are hard to disregard.  For example, he notes that it was too easy to earn large amounts of money based on ‘today’ with no regard for future implications, and with little effort. Worth watching.  There are more ways to see the world that the North American way. Technorati Tags: WEF,Davos,Sarkozy,World Economic Forum Continue reading Nicolas Sarkozy opening plenary | Davos WEF Annual meeting 2010

Uncategorized

Beware of Greeks bearing Gifts

Colin Henderson

Beware od Danaos bearing gifts. ((Laocoön warned his fellow Trojans against the wooden horse presented to the city by the Greeks. In the Aeneid, Virgil gives Laocoön the famous line Equo ne credite, Teucri / Quidquid id est, timeo Danaos et dona ferentes) With that famous line, the worry of surreptitious infiltration is captured, as we now know as the Wooden Horse of Troy. When people accept a condition in the midst of a complicated negotiation with no apparent conditions beware. When I read this headline “Bankers in favour of paying global fee” my immediate reaction, as an ex banker … Continue reading Beware of Greeks bearing Gifts

Economy

Two views of Canadian economy – the external view is flawed

Colin Henderson

Consider these headlines about Canada, both published this week. First the world view of Canada, reaffirmed at Davos. What Toronto can teach New York and London | ft.com That’s where Canada comes in. It is a real-world, real-time example of a banking system in a medium-sized, advanced capitalist economy that worked. Understanding why the Canadian system survived could be a key to making the rest of the west equally robust. Next a Canadian view, that says Canada is a bubble waiting to burst, that is not widely shared other than by yours truly. Awash in a sea of Debt | … Continue reading Two views of Canadian economy – the external view is flawed

regulation

Securitization is nothing more than unrecorded leverage

Colin Henderson

I could not agree more with this quote from Niall Ferguson.  The problem is leverage, and securitization is nothing more than leverage that is not appropriately recorded on the balance sheet.  There is no amount of regulation, bank taxes or bonus taxes that will decrease the propensity for the next crisis until that simple recognition is agreed. Niall Ferguson: This Crisis Didn’t Happen Because Banks Were Too Big | Clusterstock "I don’t think it was really the banks’ involvement in hedge funds that were nearly as much of a problem as banks involvement in securitized MBS collateralized debt obligations." Technorati … Continue reading Securitization is nothing more than unrecorded leverage

Microsoft

2010 Annual Letter from Bill Gates

Colin Henderson

This is not terribly on topic, but it is interesting just because it is Bill Gates.  A very thoughtful letter.  2010 Annual Letter from Bill Gates: Introduction This is my second annual letter. The focus of this year’s letter is innovation and how it can make the difference between a bleak future and a bright one. 2009 was the first year my full-time work was as co-chair of the foundation, along with Melinda and my dad. It’s been an incredible year and I enjoyed having lots of time to meet with the innovators working on some of the world’s most … Continue reading 2010 Annual Letter from Bill Gates

Canada, Economy

The impact of global fiscal stimulus is good for Canada | Bank of Canada

Colin Henderson

Canada has been receiving kudos for a job well done throughout the crisis of the lest 2 years.  This analysis from Bank of Canada has a telling paragraph (highlighted) that suggests there are good classic economic reasons for Canada being where it is, and over-confidence would be a bad idea. The Power of Many:  Assessing the impact of Global Fiscal Stimulus | Bank of Canada Table 4 shows that, on a regional basis, the United States, as a large and relatively less open region, benefits the least from a global stimulus. Moreover, the impact of different measures depends on its … Continue reading The impact of global fiscal stimulus is good for Canada | Bank of Canada

online+banking, US

While twentysomethings – entertainment .. social networking but thirtysomethings – manage finances online | Finextra

Colin Henderson

I am usually suspicious of surveys, but there appears to be a ring of reality to this one.  There is a link to the survey questions, which I found intriguing. Youth and tech savvy not always related – Wells Fargo survey Stephanie Smith, SVP, online sales and marketing, Wells Fargo, says: "There’s so much in the news about social networking but it’s interesting that just 10 percent of respondents said they make social networking a high priority, compared to 65% of those who make their finances a high priority." Technorati Tags: wells fargo,genX,genY Continue reading While twentysomethings – entertainment .. social networking but thirtysomethings – manage finances online | Finextra

regulation

Real Time Solutions for US Financial Reform | NYU Stern Working Group on Financial Reform

Colin Henderson

On Vox, the authors noted have a new ebook (pdf) that paints a quite complete picture of the elements for consideration in financial services regulatory reform. Real Time Solutions for US Financial Reform Viral Acharya Thomas F. Cooley Matthew Richardson Ingo Walter 15 December 2009 The NYU Stern group – authors of the influential book Restoring Financial Stability: How to Repair a Failed System – have completed a new ebook that assesses the strengths and weaknesses of the US financial reform legislation. This column introduces the new ebook. FYI, here is the ToC.  Click through for the book in pdf. … Continue reading Real Time Solutions for US Financial Reform | NYU Stern Working Group on Financial Reform

Uncategorized5 Comments

Congratulations to Obopay on being invited to World Economic Forum

Colin Henderson

Obopay are the only financials services company amongst ‘technology pioneers’ that are invited to this years forum that kicks off Wednesday this week in Davos, Switzerland.  Congratulations to Obopay. [emphasis mine] Q. Why is Obopay going to the WEF? Every year WEF recognizes approximately 20 technology pioneers and asks them to attend Davos. This year there were 26 companies recognized – of those 11 were IT companies, the rest were health, energy, or other. We were the only financial services company recognized this year. The forum is always interesting and the coverage is much easier from afar now, using youtube, … Continue reading Congratulations to Obopay on being invited to World Economic Forum

Economy

Thoughts on ‘The End Game’ and ‘This Time is Different’

Colin Henderson

My weekly newsletter from John Maudlin, cross posted here on The Business Insider is valuable to me in setting context for the longer view in the economy for North America, Europe and Japan.  This week is no exception.  Having spent 2009 reviewing inflation, and deflation prospects, he has now turned to thinking about what the economy will look like in the mid term future – The End Game. Over the next several months, we are going to start to explore various aspects of the end game. Whither Japan? Are they actually, as I think, a bug in search of a … Continue reading Thoughts on ‘The End Game’ and ‘This Time is Different’