Category: Essential posts

The Paulson doctrine(s): Part 1, prevent the Second Great Depression

22 September, 2008 (09:37) | Capital markets, Essential posts, GSEs, Policy, Subprime, US News | No comments

By their works ye shall know them, as the saying goes, and over the last few weeks, we have found the world’s financial markets gyrating hysterically as they seek to decipher what the new ruling troika of Paulson, Bernanke, and Geithner will do next.
 

New York Times: Ben Bernanke, far left; Tim Geithner, far right
With […]

When options have negative value: Part 3, money being Manny

13 August, 2008 (08:56) | Economics, Essential posts, Negotiation, Speculation, Sports, Theory | No comments

[Continued from the previous Part 1 and Part 2.]
 
Yesterday, we saw that in his role as sponsor, former Red Sox left fielder Manny Ramirez, perceiving that his current contract had gone on ‘too long,’ was engaging in a time-honored if not time-endorsed strategy of the deniable strike, probably at the behest of his new agent, […]

When options have negative value: Part 2, money being money

12 August, 2008 (08:33) | Economics, Essential posts, Negotiation, Speculation, Sports, Theory | No comments

[Continued from yesterday’s Part 1.]
 
Yesterday’s post starring Manny Ramirez, late of the Red Sox and now tearing the cover off the ball for the Los Angeles Dodgers, had brought him to the point of frustration, because a contract negotiated by Dan Duquette back in 1999 had turned from being a burden on the Sox to […]

When options have negative value: Part 1, Manny being money

11 August, 2008 (09:25) | Economics, Essential posts, Negotiation, Speculation, Sports, Theory | No comments

Just as sports is a bench-test model for life – things are played out in small, according to prescribed rules, with all results reducible to integral numbers – so too are sports contract negotiations a bench-test model for larger business challenges. 
 

Business ain’t so hard when you have a 0.900 OPS
 
He was so valuable we […]

“Profit is the price you pay for competence”

30 May, 2008 (08:25) | Ecosystems, Essential posts, Theory | No comments

                                                      “Profit is the price you pay for competence.”
 
Work expansion isn’t just a good idea, it’s the Law
 
They’re called non-profits – or, more formally, ‘not for profit entities’ – and therein lies the great fallacy of their existence. 
 

There are two sides to every question
 
Non-profits have to make a profit.  The reasons are manifold.
 

Not that […]