Tag Archive: Capitalism


In this world of uncertainty where life do not has guarantee, people aspire for guaranteed returns. The recent posts SONY DSCdone on my blog pertains to are market’s overvalued and volatility .That how a financial television especially is built on the idea of using volatility, wherever it may be, to capture eyeballs

The Warren buffet latest (2015) letter to the Berkshire Hathway shareholders is a great – great read especially from the page 24 onwards. Here is the link Berkshire Hathway Letter
Some of the smartest blogger have shared their thoughts on the volatility & risk from the letter .

Josh Brown writes:-
The modus operandi of a lot of Street denizens is to present something as a problem for you so that they can sell you the solution. By putting the fear of volatility in front of you as though it’s a serious long-term risk, the door is then opened for all manner of high-cost, horrifically ineffective products or strategies. My partner Kris likes to say “the easiest way to sell someone a map is by first convincing them that they’re lost.”  Continue reading

Leverage versus Debt

Few days back Macro business published an article on Leverage versus debt . Found interesting and thought of sharing my point of view on it.Google

Europe, Japan and America are printing money at an extraordinary rate. It has reduced the cost of debt to negligible levels. Usually this is explained with reference to what is happening in the conventional economy, but I suspect there may be another explanation. The systemic effects of the bizarre financial system that we have created, which is based on leverage. That leverage, which is thought of as debt, is not really what we mean by debt.

One of the features of the explosion of derivatives in the last 15 years, the rise of “meta money”, is that it was achieved through the creation of massive amounts of leverage. When Long Term Capital Management nearly destroyed the world financial system in 1998, it was done through a highly leveraged play on the rouble. LTCM was brought undone when Russia defaulted on its bonds.  Continue reading

Debt and Leverage

Couple of days back Macro business published an article on Leverage versus debt . Found interesting and thought of imagessharing my point of view on it.

Europe, Japan and America are printing money at an extraordinary rate. It has reduced the cost of debt to negligible levels. Usually this is explained with reference to what is happening in the conventional economy, but I suspect there may be another explanation. The systemic effects of the bizarre financial system that we have created, which is based on leverage. That leverage, which is thought of as debt, is not really what we mean by debt.

Continue reading

Was thought of sharing this a long back but skipped from my mind . Markets provides lot of learning opportunities and if imagesit is presented in the form of a movie it is more easy to remember. I am sharing some of the best movies that I saw and some quotes :

Most Corrupt Movie About Finance: Enron, The Smartest Guys In The Room
Best Line:I would like to know if you are on crack, if so that would explain a lot. If not, you may want to start because it’s going to be a long time before we trust you again.’ 

Most under-rated Vin Diesl Movie About The Stock Market: Boiler Room
Best line: Seth: What do you mean, you’re gonna pass? Alan, the only people making money passing are NFL quarterbacks and I don’t see a number on your back. Continue reading

Chaos theory attempts to explain the fact that complex and unpredictable results can and will occur in systems that are

Chaos Theory (film)

sensitive to their initial conditions. A common example of this is known as the Butterfly Effect. It states that, in theory, the flutter of a butterfly’s wings in China could, in fact, actually effect weather patterns in New York City, thousands of miles away. In other words, it is possible that a very small occurrence can produce unpredictable and sometimes drastic results by triggering a series of increasingly significant events.

Lets try to figure it out with Capitalism at a Cross Roads :

Here is the Preface

The Fed’s Dual Mandate and the Birth of Crybaby Capitalism: finding the butterfly Continue reading

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