Archive for May 24th, 2016

Should US opt for longer term bonds of say 50 year and more?

May 24, 2016

The term premium to hold long bonds is in negative and lowest since JFK era.

Barry Ritholtz makes a case for US issuing 50 year treasuries. One can always debate pros and cons of ultra low rates. But the least US govt could have done is to take advantage of these low rates and issue much longer term bonds. Currently it stops at 30 years whereas so many countries have issued 50 year ones:

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Learning about economics using peanut butter and cupcakes…

May 24, 2016

St Louis Fed has these interesting lessons to learn economics. They are meant for class 1-3 but don’t see why they cant be used for senior classes as well. It is far better to learn economics using these methods than the boring books which emphasize algebra over common sense.

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What is it like to be the first US bank to do business in Cuba?

May 24, 2016

Here is an interview of David Seleski, CEO of Stonegate Bank which became first such bank. The interview reveals how a bank both gets trapped in bad relationships between two countries and also shapes them:

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India’s Central Asia dreams to set sail from Chabahar

May 24, 2016

A nice summary of the recent deals by Indian government in Iran. Coincidentally, I have been reading this book by Scott Levi which documents how Punjabi Khatri merchants traded in Central Asia.

The recent deal is all about going back to history:

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A penalty to surrender payments bank licence?

May 24, 2016

The case seems to be getting more interesting. What should be treated as a normal entry and exit in business decisions is getting lost in licences and penalties. After the two payment banks surrendered their licences, the licencor is not amused.

 

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