When the cure may be worse than the illness
As the financial services sector of the share market heads back towards its 1980s share of about 10 per cent of total market capitalisation, compared with the peak of 40 per cent in 2006, one could be forgiven for wondering about the fundamental value proposition presented by banks, funds managers and insurers. It is well documented that funds managers as a whole do not add value; that’s why there are index funds. But a sufficient number do and their names change often enough for that industry to expand.
When the cure may be worse than the illness
As the financial services sector of the share market heads back towards its 1980s share of about 10 per cent of total market capitalisation, compared with the peak of 40 per cent in 2006, one could be forgiven for wondering about the fundamental value proposition presented by banks, funds managers and insurers. It is well documented that funds managers as a whole do not add value; that’s why there are index funds. But a sufficient number do and their names change often enough for that industry to expand. Nothing ‘socialist’ about bailout opportunities for super
There’s been a lot of comment this extraordinary month about whether the American model of capitalism is dead. I don’t think there’s anything red about the opportunities that Wall Street’s implosion will present for those who can provide liquidity. The desperation to replenish balance sheets could be felt in talk doing the rounds last week that a certain local institution, ravenous for new capital, had resorted to issuing paper into its own cash funds.
Nothing ‘socialist’ about bailout opportunities for super
There’s been a lot of comment this extraordinary month about whether the American model of capitalism is dead. I don’t think there’s anything red about the opportunities that Wall Street’s implosion will present for those who can provide liquidity. The desperation to replenish balance sheets could be felt in talk doing the rounds last week that a certain local institution, ravenous for new capital, had resorted to issuing paper into its own cash funds. 
