Posts in Economics

Do You Follow Rules? Permissionless Innovation

I am a huge fan of Russ Roberts Econ Talk podcast.  I listen to them when I am commuting.  He covers a lot of ground in his podcasts.  I thought this one was very interesting.  It’s about permissionless innovation. Here …

Early Stage Financings Drop

When I read the Techcrunch article on the early stage finance drop it resonated with me. It is where we invest in as a fund, and it’s what HPA did when I co-founded it way back in 2007.  Virtually all of …

Can You Short Bitcoin?

The exchange part of Bitcoin has always been sort of the wild west to me.  No standardization.  No real regulation.  Most of the big time trading is done bilaterally.  DRW’s Cumberland Mining in Chicago is the center of the universe …

The Liquidity Crisis

There is a problem that is solvable when it comes to startups. It’s liquidity. Over the past couple of years, I have seen Fund of Fund managers like Chris Douvos, Michael Kim, and Lindel Eakman talk about this problem on …

Driverless Will Affect Everything

A while ago, Benedict Evans had a really great blogpost about driverless cars and their effects on different things that you might not think about.  He is a VC for a16z and a great follow on Twitter.  For example, a …

Why Can’t A Country Do an ICO?

Yesterday I saw where Burger King issued it’s own cryptocurrency in Russia, WhopperCoin.  It didn’t surprise me.  When I first started thinking about cryptocurrency, I hypothesized that big companies would use it for their supply chain management and to lock …

Blockchain Will Disrupt Everything

My friend Mike sent this to me.  It was a presentation at the Stigler Center over at Chicago Booth.  David Yermack is an academic at NYU.  They did a 3 day conference on blockchain, and here is a link to …

Something to Remember on the 4th

The 4th of July is an auspicious day in human history.  For the first time, a society was organized around the principle that the rights of humans came before the rights of the government, monarchy or ruler that administered them. …

The Repeal of Dodd-Frank

Yesterday, the House voted to roll back Dodd-Frank.  This is a very good thing.  Dodd-Frank was a reactionary law.  It was a reaction to the financial crisis of 2008.  If you are a person that wants to get lobbying out …

Make Capitalism Compete

My wife brought a Wall Street Journal opinion piece to my attention.  It’s about why the younger generation is rejecting capitalism.  There were plenty of disturbing things about the recent presidential election.  One of the most disturbing to me was …

Change Is Not Easy

Change is not easy. Fred Wilson blogged about how if you seek to understand, or seek to see the world differently, Change.  He is seeing change in his portfolio companies.  In some of my portfolio companies, I have seen that …

Stock Indexes and Success

Today the jobs number will be released. It’s probably going to be a good number. The number has nothing to do with Trump being elected. He’s only 7 weeks in. Ramping up hiring takes a lot longer than that. Since …

Clearing is Centralized, and Concentrates Risk

One of the things blockchain might be able to do better is clearing.  Clearing of swaps especially.  Under Dodd-Frank, the government mandated a lot of swaps clearing.  Logically, this made sense.  I was initially in favor of moving plain vanilla …

Trump Loses on Department of Labor Law

“With or without regulation by the federal government, the principle of ‘clients first’ is here to stay.” – Jack Bogle When I read the Department of Labor was wading into financial regulation, my first inclination was dread.  I didn’t trust …

Bitcoin Trading Volume Falls Off A Cliff

The exchange space in Bitcoin has been interesting.  I have been observing it with a keen interest.  Exchanges have been interesting to me my entire life.  I was on the board of the worlds largest exchange.  Everyone thinks exchanges are …

What Trump Inherits

Donald Trump enters the office with the highest debt to GDP ratio of any president since Truman in 1948 (post WWII). (via SRP) pic.twitter.com/Pw3W6v9RYy — Holger Zschaepitz (@Schuldensuehner) January 20, 2017 Today America will do something that’s always been pretty …

The Amount of Venture Debt is Increasing

My whole life, I have watched macroeconomics.  It is the “dismal” science.  But, as a futures trader, you could make some money by paying attention to macroeconomics and trying to piece together what you thought would happen.  A lot of …

Are Angels Muscling in on VC’s?

Read an article on AngelList.  It’s a pretty cool platform.  Here is a quote from the WSJ article: Since launching six years ago, AngelList has shaken up the venture-capital landscape, creating new players on the industry’s traditional turf and giving …