[R]eal value creation [by established modern economic view comes from] company creation; that’s the hardest thing to do. Innovating in hostile environments take raw talent and complete suspension of disbelief. The founders who make this happen are the heroes of our industry. (Source)
When I am reading this, then I can’t think that VCs like bank bailouts. And lesson number two, in perspective of the France-CEO-culture topic + foreign affairs (politics). Nobody from the outside should ‘get in’, lecutre them and use force how to do something ‘right’.
Who are you to tell someone what is right and what is wrong.
I have been reading here and there about John Edwards missteps. But found myself in one of Andrew Young’s accounts, more or less.
[I] paid for much of [his affairs] expenses out of [my] pocket, and [the guy] promised reimbursement when [we find the money].
I never saw the money from an ex-friend/flatmate for whom I paid his share of the deposit for a flat.
“As a creator, part of what I seek is recognition, immortality. I don’t work for Apple, or Google (I’ve been offered jobs & buyouts) because I want the fame myself. It’s my shot at immortality. My designs are my children. So it stinks when I feel like Steve might get the fame for my innovation. I lose my children, as it were.”
“But your children aren’t really yours. They have lives of their own. So when your designs do change the world, you have to accept it. You have to say, ‘Ok, this was such a good idea, other people took it and ran with it. I win.’”” —via @WilShipley. About products, software and design. (Source @TechCrunch)
Before I quote the experts and pundits here, let me state one fact. Greece is not the tip of the iceberg of the
coming rolling (sovereign) debt crisis. Greece had these problems long before the credit crunch. Others will see their premiums rise dramatically to pay down/to issue new debt too.
Zero Hedge reports … “The main story of the day anyways was further sell-off of Greek bonds. France and Germany denied rumors of an ECB bail-out, but the IMF stated they would act if needed. We think this puts Europe in a bit of a pickle, because this is the first hard test on the union, and letting the IMF take the helm and step in to support one of their members would be somewhat humiliating. Maybe ripple effects on Spain, Portugal, or Ireland, will also make France’s and Germany’s position more difficult to hold. The odds in our mind are towards a quick resolution. Bunds have been bought against the PIGS sovereign bonds being sold, and we think a resolution will bring about swift selling of German Treasuries, especially as US Treasuries are barely rallying despite a strong 7Y auction today.”
Reuters reports a government on ROADSHOW … “The government had previously announced it would stage a roadshow for investors in East Asia, including China, and the United States sometime this year.”
See here for the FT blogging about Goldman Sachs involvement “high-risk high-return = client Greece”.
The China story @moneyweek.com … “A former adviser to the Chinese central bank, Yu Yongding, effectively told Bloomberg that China shouldn’t touch Greek debt with a ten-foot bargepole. “Even if pricing is attractive, one key problem for Greek government bonds is the lack of credibility. We trust US statistics on debt and deficits. The numbers are not pretty, but we have a pretty good idea of what we are buying. In contrast, Greece’s statistics have been sharply criticised by the European Commission.” In short, says Yu, “It is unreasonable for an economist to support a diversification away from an unsafe asset class [US Treasuries] to a much more unsafe asset class [Greek government debt]. Let European governments and the European Central Bank rescue Greece.”
Tony Barber from the FT highlights the point that Greece is not Ireland … “given the constraints of European monetary union (devaluation is not an option, there is no national control over interest rates, and so on), Ireland has bitten the bullet and pushed through the only measures that will work.
Brian Lenihan, Ireland’s finance minister, made an interesting point last year when he said other European Union governments were amazed at the mild public reaction to the austerity measures in the 2010 budget. There would have been riots in France, he observed.
What about Greece? The conventional wisdom is that a Mediterranean government can’t adopt Irish-style rigour because people will pour into the streets, social order will be threatened and the authorities will back down. This is too condescending, in my view. Street protests have a ritualistic quality in France, Italy and elsewhere in southern Europe, and there is no automatic reason why they should throw a government off course.”
And to underline my initial statement from above, I will quote an expert … “the U.K. is a must to avoid,” Bill Gross from Pimco writes. “Its Gilts [government bonds] are resting on a bed of nitroglycerine. High debt with the potential to devalue its currency present high risks for bond investors.” (Source)
At least he tried. Not so many were before him in the same position.
eng. Policy should not follow ideology. Policy needs to be a realist and a pragmatist. (Policy/Politics)
“I’d rather be a really good one-term president than a mediocre two-term president.”
“I can guarantee that the worst thing we could do would be to raise taxes when the economy is still this weak.”
I am looking forward what he is proposing on Wednesday in his State of the Union address.
This why information overload doesn’t actually exist.