Muddying the Waters

Here in our dismal pit, we perked up a bit as we read the following headline in the Grauniad:

Clarity on Burford Capital is needed after Muddy Waters treatment

A bit of background on this. The hedge fund Muddy Waters, which has no connection to McKinley Morganfield, aka Muddy Waters, the blues singer-songwriter—but perhaps it should have—issued a nice little report putting the knife into listed company Burford Capital which caused a huge drop in the latter’s share price.…

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Don’t Mess With Markets – Turkey’s Stock Crash, 1,200% Interest Rate

The great lesson of the financial chaos enveloping Turkey is that you just don’t mess with markets. For they’re not some option, some taste or fashion, they’re the reality of what everyone’s thinking. Tell people they’re not allowed to think that way and they’ll carry on or worse, redouble their efforts to do so. This being the problem that all economic planners suffer from. They think all should be thinking as they do and get most upset when they don’t.…

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Heavy Lyft-ing

The future, so they say, is with the new economy. New ways of doing things will replace all the old ways in short order. But to do this, you’ve got to displace the existing system. Sometimes innovation brings something never seen before (think Amazon) or provides new ways of doing the same ol’ thing.

That last is the challenge facing the new breed of taxi companies. Sorry, they don’t call them that. They’re different. They’re the future.…

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Our Word, Stock Markets Reward Those With Good Climate Change Policies

One study does not proof make – we’d all like to see a little more replication than that. But the implication of this paper is that we’ve got to do a great deal less about climate change. For stock markets bid up the share prices of those companies which take a sensible long term view of it all. Thus they already have an incentive to have a sensible long term view. Nothing else need to be one to force them then.

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Trump’s Shouting At The Fed Over His Own Tax Policies

There is a certain amusement to watching Donald Trump shouting at the Federal Reserve over interest rate rises. Less amusement about the Dow falling 800 points but still. For the rate rises are the result of the tax policies that Trump has pushed through.

Do note, I think the tax policies are just fine, beneficial. But the rate rises are still the result of them:

President Donald Trump has renewed criticism of the US central bank, blaming “crazy” interest rate rises this year for prompting steep stock market falls.

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Stock Markets Reduce CO2 Emissions, Bank Finance Increases Them

This is an interesting finding. Sure, we know about the curve, developing countries get dirtier then cleaner as they get richer. But there is a connection between how that is all financed. A more Anglo Saxon economy, relying more upon equity ans stock markets, appears to produce fewer such emissions, a more continental one largely financed by bank loans create more emissions. Huzzah for Anglo Saxon capitalism then, eh?

Finance and pollution
Ralph De Haas, Alexander Popov 05 October 2018

The environmental Kuznets hypothesis predicts that pollution will increase at early stages of development but then decline once a country surpasses a certain income level.…

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