“There’s a huge layer of the economy unseen in the official data and…unaccounted for on the income statements and balance sheets of most companies. Free digital goods, the sharing economy, and changes in our relationship have already had big effects on our well-being.”
-ERIK BRYNJOLFSSON and ANDREW MCAFEE,
“Most investors are not well-equipped for an analysis of that kind (political risk). They built their careers crunching numbers, not pondering social science.” -The Financial Times’ GILLIAN TETT
“The roughly $275 billion in legal costs for global banks since 2008 translates into more than $5 trillion of reduced lending capacity to the real economy.” -MINOUCHE SHAFIK,
“To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about.”
-Economist FREDERICH HAYEK, as relayed by William White in his Adam Smith prize acceptance speech last month.
“But we are restricted from investing in that wider range of assets…it could be useful (at a later date) to be able to intervene directly in assets where the prices have a more direct link to spending.”
-JANET YELLEN, responding earlier this week as to whether the Fed had the authority to purchase stocks and corporate bonds.
“Central banks are the largest blind buyers in the world, accumulating trillions of dollars worth of assets with no thought of price, valuation, or exit strategy.”
-Jones Trading’s MIKE O’ROURKE
INTRODUCTION
This week’s EVA brings the second edition of our new Random Thoughts format.
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