Author: Roger Staiger

Published by Roger Staiger

17 September 2018

 

Question: According to MSN, what is the daily cost of living like a billionaire?

 

Argentina aims to reassure IMF with austerity budget – Pg. 1

–          Mr Marci’s government and the IMF are negotiating over Argentina’s request to reinforce a $50bn bailout package announced in June.

–          …spending cuts of about 1.4% of GDP, and revenue measures, including new export taxes that will raise 1% of GDP, should enable the government to balance the federal primary budget next year

 

What I wish I had known at 18 – and advice for university students – Pg. 10

–          First, if you go out to parties or bars make sure you drink as many glasses of water as alcohol.  Secondly, be friendly with everybody because you never know where they will end up.  Third, follow your passions

–          The first people you meet are not necessarily going to be your best friends – don’t worry about it.  Don’t get too caught up in trying to go to the parties everyone’s expected to go to.  Try to find people with whom you can forge close connections and who will be with you decades afterwards

–          If you make a mistake today [picking a major and going to University] and want to switch courses, there are financial consequences.  The other thing I wish I’d known is how valuable it is to get work experience, especially early on when the academic pressures are slightly less

–          The thing I regret most is spending too much time in college bar with other people moaning about stuff.  It’s the time in your life when you’re free to absorb interesting stuff.  I wish I had listened better to my peers and to academics.  Learn to listen before you go

–          What matters is developing a wide network.  The thing that catches people is they go deep far too early, get stuck in one profession and don’t have any connections outside that area

–          I wish I had taken more classes that had nothing to do with my major, and relaxed and enjoyed it

–          The lesson I wish I’d learnt, and I still haven’t, is the ability to shut up

–          I wish I’d known is that it didn’t matter what precise grade I got.  What mattered was that I understood what I was interested in and focused on that in a way that was useful for the jobs Market

–          (Prof Note: (1) Being right is not often not enough; (2) Relationships and network are meaningful in so many ways, i.e. personal and professional; (3) Question the status quo….always!; (4) A sunset is better when shared)

 

MBA applications fall at top US business schools – Pg. 11

–          Business schools blame the decline on conditions in the US market, where a combination of fast-rising tuition fees and a lack of employers willing to fund student places has pushed candidates to target only a few elite institutions

–          …applications to Harvard, are down by 4.5% on the previous year to its two-year full-time MBA course

–          The decline in US demand is down to a mix of US immigration curbs, a growing number of alternative and cyclical movements in demand for full-time study…

–          A perception that overseas students are unwelcome in the US…

–          More damaging have been the tightening of immigration restrictions over many years, a rise in the quality of business schools in Europe and Asia and the expectation that business education should be obtainable whenever and wherever students want it in an age of online delivery…

 

Answer: (1) Mansion Costs: Varies, But can top over $15,000/day; (2) Fancy car costs: $411+/day; (3) Luxury Yacht Costs: Up to $5,890/day; (4) Entertaining Costs: Up to $82,191; (5) Personal Trainer Fees: $1,340/day for one hour; (6) Personal Chef Costs: $515/day; (7) Nanny Fees: $220/day; (8) Butler Costs: $272/day; (9) Cleaning Service Costs: $267/day; (10) Outdoor Home Maintenance Costs: $125/day; (11) Personal Security Costs: $21,370/day; (12) Personal Assistant Costs: $246/day; (13) Lawyers and Legal Fees: $1,500/billiable hour; (14) Vacation Home Costs: $3,000+/day (Prof Note: My personal advice: weekend home and rent the holiday home.  When I run the numbers, this makes the most economic sense.  However, can one put a price on personal pride?  Do what makes you happy (and that you can afford)); (15) Private Jet Costs: $2,254+/day (Prof Note: Every time I look at NetJet to Nevis the calculations are clear, American Cattle (Economy) class wins every time!); (16) Total Cost to live like a billionaire: $134,601+/day

Published by Roger Staiger

15 September 2018 FT — Articles to Read

15 September 2018

 

Question: What are 15 Ways to be more attractive, according to science (Prof Note: The article appears to be about males)?

 

A post-crisis cure that has stored up economic pain – Pg. 11

–          Today most agree that the final response to the crisis – bank bailouts, endless quantitative easing and a dose of fiscal stimulus – was the correct one

–          …wave of experts now insisting another crisis is just around the corner (Prof Note: Including ME!)

–          Thin about what QE and super-low interest rates have done.  The idea was that they would prevent corporate and personal bankruptcies but also – as explained by the US Federal Reserve and the BoE – push up asset prices so that the wealth effect (the idea that if you feel richer you spend more) would drive consumption and hence recovery

–          The wealthy, and those in a position to borrow and take risks, have become wealthier

 

Asia resilient in EM crisis but dangers await – Pg. 15

–          Emerging economies are being challenged by a strengthening US dollar and the scaling down of ultra-loose monetary policy in developed markets but parts of Asia are proving more resilient

–          Among the most exposed emerging economies are those with current account deficits that rely on foreign capital.  When US rates rise, attracting foreign capital into developing economies is a harder feat

–          Many Asian economies have built current account surpluses with the exception of Indonesia, India and the Phillipines, which last year had respective current account deficits of 1.7% of GDP, 1.5% and 0.8%

–          Some highlight the big change from Asia’s financial crisis in 1997 that was sparked by an increase in US rates that sucked capital out of the region

–          China’s debt levels are eye-wateringly high, amounting to 299% of GDP in the first quarter, a risk that has deterred some investors

 

Question: (1) Travel with an entourage (Prof Note: I never go anywhere without my posse!); (2) Befriend a baby (Prof Note: I once had a peer that was recently divorced with a young baby tell me, “Babies are “chick” magnets!); (3) Walk your dog (Prof Note: I actually had another peer purchase a dog just to meet “the ladies”); (4) Give your razor a break (5) Lend a helping hand (Prof Note: This is just about being a good/great person); (6) Master your gait; (7) Craft your online dating bio wisely; (8) Steer clear of selfies; (9) Smile (but, like, slowly); (10) Stay strong, but not too strong; (11) Flaunt your battle scars (Prof Note: I often say to peers, the older you get, the more scars are expected on your face); (12) Carry a guitar (Prof Note: I had a student that rode a motorcycle.  Handsome bloke.  The first day of class he swaggered in with his helmet and the woman looked.  I took the opportunity to say, “Now why do you carry a helmet when I saw you riding the bus?”  He took the comment in great stride! J); (13) Ditch the corny pickup line ; (14) Manspreading can be a good thing; (15) Buy a bouquet

Published by Roger Staiger

14 September 2018 FT — Articles to Read

14 September 2018

 

Question: According to MSN:Lifestyle, what are 11 of the Most Important Qualities Women look for in a guy?

 

Trader’s lost bet blows hole in post-crisis safety net – Pg. 1

–          Authorities singled out clearing houses as pillars of global market stability to withstand the next financial crisis.  They stand between two parties in a trade to help prevent the fallout from defaults rippling through the market

–          Nasdaq said the size of Mr Aas’s positions blew through several layers of safeguards designed to protect the clearing house from hefty losses

 

Wall Street panic aggravated financial crash, says Bernanke – Pg. 2

–          The real estate bust was not the primary reason for the plunge in US economic fortunes in the financial crisis, Ben Bernanke…

–          …panic in the funding and securitization markets was the main reason for the severity of the crisis.   Its early stages would have been “significantly less severe” without the collapse in confidence on Wall Street

–          …adds intensity to the debate over whether the US central bank and other authorities put too much public money into rescuing Wall Street from 2007-09, and whether they were negligent in failing to tackle the hazards building in the property market

–          …reversal of a surge in borrowing that, combined with a house price collapse, depressed household spending and sparked intense deleveraging

–          The other source was the fragility of the financial system, in which mortgage-related losses triggered Wall Street panic, including runs by wholesale funds and fire sales of securitized assets

–          The two drivers imply different policy responses, Mr Bernanke said. If household debt was the main problem, it would imply the focus should be on stabilizing housing markets and modifying troubled mortgages.  The markets-focused driver implied the “policy imperative” was to end panic in the financial sector – putting the focus on interruptions to the supply of credit, not demand for it

–          This week marks the 10th anniversary of the collapse of Lehman Brothers, which triggered the most intense phase of the panic

 

Emerging market turmoil makes the case for a stronger IMF – Pg. 9

–          Before the financial crisis, the fund had less than $300bn available to support troubled countries.  However, after the European sovereign debt crises that arsenal rose to $1tn

–          In 1997 Asian financial crisis, by contrast, the potential hole was about $500bn, then twice what the IMF had in reserve

–          About a quarter of the IMF’s arsenal is cash, or money permanently deposited by members in so-called quotas.  Another quarter comes from multilateral borrowing arrangements, or credit lines, which are due to expire in 2022.  The rest is bilateral borrowing agreements, and those credit lines start to expire from 2019

–          …nobody knows what the Trump administration will do.  And the US has a veto

 

Answer: (1) Chemistry; (2) Vulnerability; (3) Stability; (4) Equality; (5) Awareness; (6) Emotional Presence; (7) Curiosity (About Her!); (8) Protectiveness; (9) Acceptance; (10) Assertiveness; (11) Red Hair

Published by Roger Staiger

13 September 2018 FT — Articles to Read

13 September 2018

 

Question: According to MSN, what three (3) traits do happy people have in common?

 

Oil heads towards 4-year high as hurricane heightens supply fears – Pg. 1

–          Oil prices rose to more than $80 a barrel yesterday, nearly a four-year high as traders braced themselves for a series of tropical storms barreling towards the US, which are coinciding with the mounting concerns about a global supply shortfall

–          A second tropical storm, Isaac, is also being watched as it may have a bigger impact on the oil sector if it heads towards the Gulf of Mexico – a hub for production and refining operations

–          The start of the US storm season has coincided with other jolts to the oil market, including an expected hit on exports from Iran as US sanctions come into effect in November, which is likely to create a squeeze despite Mr Trump’s calling on other producers to lift output

–          Big Asian consumers, such as India and China, have begun to reduce their purchases of Iranian oil while South Korea has already dropped imports to zero on the orders of the White House

–          Saudi Arabia and allies inside and outside Opec, such as Russia, have pledged to raise output but the increase has been slower than expected, helping propel prices

 

Incomes at pre-crisis level after 3 years’ growth – Pg. 3

–          Incomes in the US have returned to their levels before the recession after growing for a third consecutive year in 2017, as strong growth and hiring improve the fortunes of middle-class households

–          Median household income rose by an inflation-adjusted 1.8%, putting it at $61,372 in 2017

–          The share of the population lacking health insurance also stagnated at 8.8%, or 28.5m people

–          Male workers saw a 3% increase in incomes from 2016, while the change in median earnings for female workers was not statistically significant,…

 

China steps up collection of payroll taxes – Pg. 4

–          …the move to increase the collection of social security contributions is rubbing against an effort to cut corporate taxes to support a slowing economy.  Strict enforcement of social security requirement would cut corporate profits 2.5% and nominal growth in GDP 0.6%…

–          China’s employer-side payroll taxes for social insurance – including pension, medial insurance, unemployment insurance and workers’ compensation – are high.  The average rate in China was 29% of payroll in 2015, compared with 8% in the US,….

–          China’s public pension system is facing a big shortfall because of an ageing population and shrinking labour force

–          Now, as part of a broader overhaul of its personal income tax system, China is transferring authority for collecting such contributions from local social security bureau to local tax authorities, which have stronger enforcement capabilities.  The change takes effect at the beginning of 2019

 

Financial Crisis – Pg. 7

–          …JPMorgan…one of the biggest banks in the world, with a market capitalization of $382bn…

–          Mr Dimon will become the last surviving pre-crisis chief executive on Wall Street when Lloyd Blankfein steps down from Goldman Sachs this month

–          The bank’s four main rivals – BofA, Citigroup, Goldman Sachs, and Morgan Stanley….

–          …even the best Wall Street returns on equity of about 14%…

–          The result is a behemoth of a bank.  With assets of $2.6tn and more than a quarter of a million staff, only China’s Big Four lenders and HSBC are larger

 

Answer: (1) They don’t let what they cannot control affect what they can; (2) They live and die by their values; (3) They believe that life is a learning process