Tag Archives: newsletter

  Immer wieder wird Inflation genannt, was keine ist – Markt- und inflationsbedingter Preisanstieg sind auseinander zu halten – Märkte, auf denen die Preise inflationsbedingt schon gestiegen sind Preissteigerungen sind nicht immer mit Inflation gleichzusetzen. Die Bezeichnung Inflation für Verteuerungen wird meist synonym, aber falsch verwendet. Teuerung ist nicht gleich Inflation, aber Inflation immer eine Teuerung. Jüngst war zu lesen: „Öl-Rally treibt die...

One popular critique of bitcoin is energy cost per transaction. This doesn’t begin to capture bitcoin’s massive energy savings compared to fiat currency. Bitcoin’s cost per transaction is well known, and often critiqued; one article in Wired magazine called bitcoin “[a] big middle finger to earth’s climate.” This is because bitcoin’s security, redundancy, and architecture are more energy intensive than traditional payments relying on a single point of failure....

All the risks generated by gambling with trillions of borrowed and leveraged dollars didn’t actually vanish; they were transferred by the Fed to the entire system. The Federal Reserve is the nation’s Helicopter Parent, saving everyone from the consequences of their actions. We all know what happens when over-protective Helicopter Parents save their precious offspring from any opportunity to learn from mistakes and failures: they cripple their child’s ability to...

Last week, Indiana Governor Eric Holcomb vetoed a bill that would limit gubernatorial authority in declaring emergencies. The bill would allow the General Assembly to call itself into an emergency session, with the idea that the legislature could then vote to end, or otherwise limit, a governor’s emergency powers. Although both the legislature and the governor’s office are controlled by Republicans, the legislature has apparently wearied of the governor’s repeated...

While all of the banks playing “pass the hot potato” with Archegos Capital’s now-dismantled equity book are undoubtedly still assessing the damage they incurred (or at least will report to shareholders), it looks like no one had it worse than Credit Suisse. The banking giant has now slashed its bonus pool by “hundreds of millions of dollars” according to FT, after the firm lost $4.7 billion in the Archegos implosion. Credit Suisse is Switzerland’s second biggest...

Digital bank Swissquote is expanding its crypto business by delving into the new world of blockchain-compliant digital assets. It appears that they are not alone: several high street banks also plan to launch “tokenization” services. Swissquote is teaming up with digital assets service provider Taurus to allow clients to issue and invest in tokenized assets. Blockchain – or other distributed ledger technology systems – promises to simplify the process of creating a...

M&A (mergers and acquisitions) activity is on the rise, as companies coming out of the pandemic with strong balance sheets shop for buying opportunities. Last week ACS, a Spanish construction group, approached Italian transport company Atlantia to buy Italy’s largest motorway network. Two big funds are also eyeing Dutch telecommunications company KPN as a potential acquisition target. M&A is one of our 2021 investment themes and we like event-driven hedge...

Bars and restaurants in Switzerland have been closed since Christmas and there are growing calls to allow outdoor dining. Keystone/Martial Trezzini Pressure is building on the Swiss government to ease restrictions imposed to contain the spread of the Covid-19 pandemic. The Federation of Small and Medium-sized Enterprises on Monday called for a review of the current situation, saying the government was focusing too much on health while failing to consider the economic...

La verità, vi prego, sul neo-liberismo: Il poco che c’è, il tanto che manca (The truth, please, on neoliberalism) There are few things nowadays that ignite more hatred, especially within university campuses, than declaring oneself to be a neoliberal (if the reader is not convinced, he is invited to try it himself and see what happens). Both exponents from the Right and from the Left, in fact, view neoliberalism as the instrumentum regni with which global political...

The lesson of China’s Cultural Revolution in my view is that once the lid blows off, everything that was linear (predictable) goes non-linear (unpredictable). There is a whiff of unease in the air as beneath the cheery veneer of free money for almost everyone, inequality and polarization are rapidly consuming what’s left of common ground in America. Though there are many systemic differences between China and the U.S., humans in every nation are all still running...