Hello. I’m Burnham Banks and I studied economics in the late 80s and early 90s. I’m still studying economics today and am still no wiser. This blog is a journal, a record of my thoughts and experiences. If we are destined to repeat our mistakes, we should at least repeat them faithfully. If not, then perhaps the past is a mischievous guide and we should try something new.
Investment Outlook Update 2018 08
Tuesday, 07 August 2018 | 8:53 am
It is difficult to ignore the short term trends and volatility but I will give it a try. In few other disciplines does luck or chance play a bigger part of the outcome than in investing. The shorter the time frame, the more chance plays a part in the outcome. The longer the time frame,
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Open and Shut: Immigration
Wednesday, 20 June 2018 | 12:49 pm
Open: Immigration is good for the economy. Unless the allocation of resources is already optimal everywhere, a redistribution of resources (human in this context) can increase the wealth and welfare of the collective. Workers moving from a poor country to a rich one become more productive as they are combined with more and better capital,
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Finance. A Misallocation of Resources?
Monday, 18 June 2018 | 8:32 am
Hard data is scarce and noisy but according to estimates by the World Bank and OECD, the financial sector accounts for 20-30% of GDP in developed countries. The IMF estimates that total global nominal GDP is some 77.6 trillion dollars of which financial services account for 13.1 trillion dollars or 16%. What services does the
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Trump Kim Summit in Singapore. China The Big Winner.
Wednesday, 13 June 2018 | 2:16 pm
On 12 Jun 2018, US President Donald Trump met with North Korean Supreme Leader Kim Jong-un in Singapore in what was hailed as a historic meeting. The document the two leaders signed state the following: The United States and the DPRK commit to establish new US-DPRK relations in accordance with the desire of the peoples
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The US Labour Market is Tight. Participation Rates Explained.
Monday, 11 June 2018 | 4:21 pm
Average hourly earnings are growing at 2.7% YOY, well below the 3.6% growth rates seen pre crisis 2008. The unemployment rate has fallen steadily from 10% during the crisis to 3.8%. The JOLTS Quits Rate (which measures voluntary quits, presumably in search of better prospects) has risen steadily since 2009 to 2.3%, near its post
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