The Development Mutants Are Coming … and We Care

The Development Mutants Are Coming … and We Care

Mutants are organisms that mutate due to a change in their composition or structure. In the development industry, we are starting to recognize mutants that slowly, but inexorably, are beginning to compete in the space historically reserved for international financial institutions. How can we understand these changes? And how can we use these mutants to […]

Deplorables Didn’t Elect Trump, Jams Did

Deplorables Didn’t Elect Trump, Jams Did

photo: Gage Skidmore Hillary Clinton famously characterized Donald Trump’s voters as a “basket of deplorables,” but she was wrong. Our friends, the British, have figured it out: Trump was elected not by deplorables, but by jams. “Jams,” short for “Just About Managing,” is the new term has swept British political discourse. They are defined as a […]

Europe at the War of Decimals

Europe at the War of Decimals

photo: Jeff Golden Anxious about the threats to Europe from Syria, Turkey, the refugee crisis, terrorism, Brexit? Be patient. Europe is now at the autumn war of decimals. The governments of the member countries of the Euro Zone are submitting to the Commission the three-year budgetary plans in compliance with the fiscal regulations of the Treaties. […]

The Rise of Anti-Establishment Italy

The Rise of Anti-Establishment Italy

photo: Ewan Topping After the UK Brexit and the Trump triumph in the US, the rise of anti-establishment Italy is hardly a surprise. It is the effect of half a decade of failed austerity doctrines in Europe and decades of failed political consolidation in Italy – ever since the notorious Tangentopoli scandals. While Italy’s constitutional referendum […]

BlackRock Report Unpacks ‘Brexit’

BlackRock Report Unpacks ‘Brexit’

(Boris Johnson, the Conservative mayor of London and freshly minted Brexit partisan, contemplates the liminal space between ‘inside’ & ‘outside’.) [Photo credit: David Holt]   Americans who follow business and financial news know that a Brexit, the potential exit of Britain from the European Union, could have a major impact on the global economy. But the detailed mechanics of […]

Funds & Fire Sales

Funds & Fire Sales

Earlier today, The New York Fed’s Liberty Street blog posted a disconcerting article about the risks that open-end funds, such as mutual funds and hedge funds, can experience when high numbers of investors demand their money back at the same time. The post — Are Asset Managers Vulnerable to Fire Sales? — starts by debunking a […]

Fed Agrees — On Uncertainty

Fed Agrees — On Uncertainty

photo: doug turetsky Fed minutes from the January 26th & 27th policy meeting released earlier today could be summed up, to a first order approximation, as expressing uncertainty, with a bias to the downside. To wit, from the Current Conditions and the Economic Outlook: “Participants discussed whether their current assessments of economic conditions and the medium-term […]

How to Train an Entrepreneur

How to Train an Entrepreneur

Have you noticed that when you are driving with a passenger in your car, you stop talking whenever you have to perform a complicated maneuver (such as passing a truck on a narrow road or merging into traffic from an on-ramp)?  It’s because that task requires extra attention, and we have a limited budget for attention (cognitive […]

Where to Invest in 2016

Where to Invest in 2016

photo: OTA Photos Key takeaway – As predicted, the markets are down and a mild global recession is on its way. Monetary policy remains accommodative, but interest-rate divergence increases volatility. Investors face a difficult environment: most markets remain overvalued and risks are tilted to the downside. After years of complacency, financial stress is rising and market-liquidity […]