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Investment banking has, in recent years, resembled a casino, and the massive scale of gambling losses has dragged down traditional business and retail lending activities as banks try to rebuild their balance sheets. This was one aspect of modern financial liberalisation that had dire consequences.
Accounting does not make corporate earnings or balance sheets more volatile. Accounting just increases the transparency of volatility in earnings.
It sounds extraordinary but it's a fact that balance sheets can make fascinating reading.
The fact is that one of the earliest lessons I learned in business was that balance sheets and income statements are fiction, cash flow is reality.
We are led by lawyers who do not understand either technology or balance sheets.
When I started Netscape I was brand new out of college and all the aspects of building a business, like balance sheets and hiring people, were new to me.
Throughout the industrial era, economists considered manufactured capital - money, factories, etc. - the principal factor in industrial production, and perceived natural capital as a marginal contributor. The exclusion of natural capital from balance sheets was an understandable omission. There was so much of it, it didn't seem worth counting.
It is economically irrational to exclude large environmental costs from the balance sheets of the producers and the consumers. You are only kidding yourself if you export those costs on to society as a whole.
There are men who can write poetry, and there are men who can read balance sheets. The men who can read balance sheets cannot write.
Deflation can be particularly dangerous when a financial system is shaky, with household and corporate balance sheets in poor shape and banks undercapitalized and heavily burdened with bad loans.