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.
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The Ultimate Hedger

We clearly have seen the demise of risk management as we have known it.  Nassim Taleb spoke very eloquently about the Black Swan, but I suspect even he did not anticipate a gigantic flock of black swans soiling the world’s financial markets.  So, where do we look for a better way?
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Positive Convexity

I remember reading an article about how only hedge funds that exhibited some form of positive convexity, regardless of strategy, survived over the long run. 
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China? Buy it!

Up until last week most investors were arguing that China could not save the world.  And we agree.  China is just not big enough to drag the world out of the mire by itself.  But it can save itself.  Here are some of the positive developments:
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Australia – nothing like as bad as one would infer from the media and market performance

A lot of global investors are assuming that as an Anglo-Saxon economy, Australia cannot avoid the travails of its peers in the Northern Hemisphere. We disagree. Here are the reasons.
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Nobody buys the idea that China will save the world

Nobody buys the idea that China will save the world.  Rightly.  China is just not big enough to drag the world out of the mire.  Of course China is a major player in certain areas of the global economy e.g. commodities (it accounted for around one-quarter of global copper consumption last year, for example), but if the
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