Posts in Finance

Ideological Investors

Last night was the Republican debate.  I didn’t watch it.  I didn’t watch the State of the Union address either.  Most of the time, politicians just say things that are made for television soundbites.  One of the reasons Trump is …






Never Pay For An Introduction

If you are a startup, never pay for an introduction. If you are fundraising, never pay for an introduction.  If you want to meet a customer, never pay for an introduction. Many people try to “service” the startup community by …






Some Data on the Tech Bubble

There is a lot of consternation over a tech bubble. I saw a graphic tweeted the other day that showed how many companies were valued over $1 billion dollars. Yesterday in Chicago, Uptake joined the billion plus club when they …






Carried Interest Taxes

Donald Trump said the US should start taxing the carried interest hedge fund, venture capitalists and private equity managers make. It might help people understand what carried interest is before they decide if it should be taxed or not.  The …






Corporate Cash And Corporate Balance Sheets

In the US, there is more cash on corporate balance sheets than ever before. There is more cash inside of banks than ever before. But, if you are a student of accounting you know that if one side of the …






Who Understands the Market?

The answer is you can’t.  I have seen a lot of weird stuff since I got involved with markets in 1986.  The last two days have been pretty weird, but not the weirdest.  I was reflecting at Marc Suster’s blog …






What are the Top Ten Future Trends?

It is awfully hard to make predictions into the future.  Just check the data on how often any macroeconomics person gets it right.  Rare.  It’s so much easier to make short term inferences.  But even those can be screwy.  Look …






Who Gets What When

Recently read a book by Professor Alvin Roth.  He is a Nobel Prize winner in economics.  It was pretty interesting.  His specialty is matching markets. The book is titled, Who Gets What — and Why: The New Economics of Matchmaking and …






The Myth of the Robotic Investor

Yesterday I left a comment on Albert’s blog and he told me to turn it into a blogpost.   Eugene Fama postulated that investors are rational.  He developed the efficient market hypothesis and proved it with data.  By the way, …






The Bag Holders Are Fully In Place

The Chinese manipulation of their market didn’t last long. 20 days. Now they have run out of buyers and they cannot attract foreign capital because it’s a one way “roach motel”.  Indigenous investors have run away. The Chinese government banned …






The Transition

Last night, I “debated” Emile Cambry at a Battleship event.  Emile runs Blue 1647.  Our topic was bootstrapping versus raising money.  I wrote about it on Medium here.  It’s the first time this sort of thing ever been done in …






Greece: How Did We Get Here?

In case you are wondering, Greece is a classic case.  The country reminds me of the line, from Ernest Hemingway “How did you go bankrupt?” Two ways. Gradually, then suddenly.” Professor Anil Kashyap of  Chicago Booth wrote a primer on …






Greece and the US

The high drama in Greece is happening now.  It’s pretty hard to predict what’s going to happen.  Markets aren’t open right now, so it’s hard to quantify what the markets really think.  They open up in about 8 hours, so …






Grexit is Like Illinois, and Grexit Isn’t Like Illinois

Was reading about the situation in Greece.  Feel so badly for their people.  Yesterday they withdrew $400M in Euro from their banks-to stuff in mattresses.  It’s not like this was a secret.  The smart money pulled their money out of …






Ignore Regulators, or Not?

Some big blow out businesses have been built over the past few years.  They have some things in common. They are marketplaces They use mobile to connect their marketplace They have a decent transaction volume natively They totally ignored government …






Chicago Financial Problems and Tech

This week, city of Chicago debt was downgraded to junk bond status by Moody’s.  Our mayor took to the airwaves accusing Moody’s of being capricious, since they didn’t downgrade the state of Illinois as well. If there is anything that …