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Economics

Presenting the family tree of systemically important, Too Big To Fail banks.  Usually family trees grow up and out – not the case with banks.

We’ve come a long way from the early 1990s when risks were relatively compartmentalized and spread across a few dozen institutions.  Sure the risks become more concentrated among fewer institutions but think of all the synergies that will be realized and think of all the shareholder value that will be created!

This reminds me of an old saying about eggs in a basket but I can’t remember how it goes…

Too_big_to_fail

Found via The Big Picture

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Seth_Klarman_Views_(24_pgs) June 2013

I’ve been meaning to read this for a while – I can’t remember where I came across this or who I owe credit to for originally posting this but thank you.  This is probably the best piece I’ve read all summer, maybe all year.

For this blog post I originally started jotting down excerpts from this speech that resonated with me.  I quickly realized that I was writing down everything – literally re-transcribing the entire speech.  I would have copied and pasted the whole thing for you, dear reader, but this appears to be a scanned copy of a printed document.

Anyway, give it a read – don’t be daunted by the 24 pages, it’s actually a very quick read and it is well worth your time.

Enjoy.