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.
Wednesday, 15 April 2020 | 8:26 am
This morning The wire The cases multiply It’s catching No escape now This thing could almost fly He’s shaking He’s coughing They look him up and down Where was this utter stranger He came from out of town. Don’t stand Don’t stand so Don’t stand so close to me The city’s so quiet Only the
Wednesday, 08 April 2020 | 1:53 pm
The Outlook Under The Shadow of COVID 19 7 Apr 2020 How is 2020 different from 2008? 2008 was a US housing crisis distributed globally by the banking system. US housing was overvalued and over leveraged. The mortgages they supported had weak underwriting and credit standards. Banks from Europe and Asia had entered the
Friday, 27 March 2020 | 8:29 am
Even assuming one had lots of cash to invest, its not easy. Liquid markets like equities and bonds are volatile and sentiment driven. There may be a quick recovery or another leg to the crisis. A more tractable approach is to seek structural instabilities. We seek opportunities in the shadow banking system, especially those parts
Monday, 16 March 2020 | 6:15 am
Contagion At the time of writing, the COVID 19 pandemic is well underway. At the end of January, there were almost 12 thousand cases, mostly in China. Now, just two months later, there are over 150 thousand cases, with the highest growth rates outside China. After China, Europe has become the new focus of contagion.
Thursday, 12 March 2020 | 6:14 am
It is becoming evident that if not the virus, the response to it, will cause recession. Fighting the virus is the responsibility of health authorities, not central banks and treasuries. Treasuries can help financially of course. Central banks and treasuries should concentrate on mitigating the economic costs of the virus and our containment measures. There