Archive for the ‘Blog Posts’ Category

When Business Theories Go Bad

When Business Theories Go Bad

By The Banker | Blog Posts

I’m a fan of New Yorker staff writer Jill Lepore, whose previous article on the History of Debt in the US was totally fascinating. In a recent New Yorker article, she takes down the much admired theory of Harvard Business School ‘disruption’ guru Clayton Christensen. Christensen argues that companies that make incremental improvements to their [&hellip

Guest Post: Don't Buy Too Much Insurance!

Guest Post: Don’t Buy Too Much Insurance!

By Lars Kroijer | Blog Posts, Insurance, Personal Finance

Editor’s Note:  Lars Kroijer, semi-regular contributor here and author of Investing Demystified, offers one of the two most important principles of Insurance: Namely, don’t buy too much of it. In this post he uses the simple example of auto insurance – which because of state laws in the US we must buy – to argue [&hellip

Cash Transfers and Inequality

Cash Transfers and Inequality

By The Banker | Blog Posts, Inequality

Markets work great, if the goal is to 1. Maximize total output; 2. Encourage innovation; 3. Reward maximum effort; 4. Reward talent; and 5. Use resources most efficiently. As a result, limiting markets tends to impair one of more of the above, valuable, outcomes. Also, non-market solutions to problems often produce sub-optimal results in one or more [&hellip

Rapunzel and Compound Interest

Rapunzel and Compound Interest

By The Banker | Blog Posts, Investing, Personal Finance

“Daddy,” began the little princess plaintively, “I’m bored.” The poor thing is trapped in her tower for the Summer months. Wizarding school ended the first week of June, and will not start again until next Fall. Also, it’s a Sunday and her 4-year old sister, the other little princess trapped in the tower, naps deeply [&hellip

Square's Small Business Lending - Innovative?

Square’s Small Business Lending – Innovative?

By The Banker | Blog Posts

A friend sent me a link this morning to an article about Square Capital’s small business cash advance business. The credit card processing company Square claims to use credit card receipts data to prompt it to advance money – within as quickly as 24 hours from the request – to existing small business customers, even [&hellip