Tag: moral hazard

Poor Executive Management Must Be Held Accountable

Poor Executive Management Must Be Held Accountable

The airlines knowingly placed themselves between a rock and a hard place when they decided to gorge on cheap debt for the purpose of funding share buyback plans designed to boost executive compensation. The lack of financial wiggle room is of their own doing. It's time for the airlines to restructure, to shrink capacity to … Continue reading Poor Executive Management Must Be Held Accountable

How to Destroy Productivity & Thwart Innovation: A 4-Step Process<span class="badge-status" style="background:red">Premium</span> 

How to Destroy Productivity & Thwart Innovation: A 4-Step ProcessPremium 

Step 1.) Close down a country: What's done is done. However, one of the consequences of shutting down the United States is that the speculative grade default rate is expected to almost triple - 4.7% to 14.4% - within the next year. Not to speak of the millions of non-public businesses that have suffered revenue … Continue reading How to Destroy Productivity & Thwart Innovation: A 4-Step ProcessPremium 

The Fed Is Crowding Out Private Capital<span class="badge-status" style="background:red">Premium</span> 

The Fed Is Crowding Out Private CapitalPremium 

The Federal Reserve is crowding out private capital. It has engaged in what feels like perpetual quantitative easing ("QE") since 2008. The Fed buying corporate credit is the latest perversion from this increasingly political institution. Federal Reserve assets continue to grow pushing against the $7 Trillion mark. Fed assets could potentially cross the $10 Trillion … Continue reading The Fed Is Crowding Out Private CapitalPremium