Tag: Risk

Economic, political, geopolitical

productivity, Profitability, regulation

StableCoin needs clear definition similar to Bretton Woods

Colin Henderson

The debate between USDC exemplified by Circle and USDT associated with Tether brings many of the realities of crypto into focus. The perennial debate has been whether Bitcoin is an asset class lke Gold or Silver or is it a useful alternative currency to fiat. Bankwatch Research Research and background on USDC and USDT. The recent Compass Point report made two points, and thus fails as an analytical support document: 1. Market Penetration – USDT has that 2. Additional cost structure for USDC (Circle ) associated with regulatry requirements similar to banking, will hinder profitability If we explore the second … Continue reading StableCoin needs clear definition similar to Bretton Woods

AI

Summers Says Fed Recovered From ‘Egregious’ Inflation Mistake

Colin Henderson

Former Treasury chief says new mistake is estimate of neutral Summers would be surprised if Fed cuts as much as market sees Chris AnsteyAugust 23, 2024 at 1:03 PM EDT Former Treasury Secretary Lawrence Summers said that, while the Federal Reserve hit a “low point” in its monetary policy history by failing to act quickly against the 2021 inflation surge, in the end it did enough to right the economy. “I’ve got to give the Fed credit,” Summers said on Bloomberg Television’s Wall Street Week with David Westin on Friday. “While it wasn’t always obvious that this would be the case, they moved strongly enough and … Continue reading Summers Says Fed Recovered From ‘Egregious’ Inflation Mistake

Canada6 Comments

The Canadian bank model secret? | risk aversion

Colin Henderson

The general theme that the ‘Canadian Bank model’ is superior has constantly intrigued me, having been personally involved there. Size and Diversification: They are smaller and less diversified, so some risk mitigation appears there. This is probably the biggest reason. Number: There are only five of them, of any consequence, so a couple of regulators can do a lot of supervision there. Loan restriction: there is a restriction on loan participation relative to capital. Purdy Crawford/ Pan Canadian Investments: The Canadian government did presciently freeze $35 billion in derivatives back in 2007. But no … in aggregate there is no … Continue reading The Canadian bank model secret? | risk aversion