Tag: Finance

  • BlackRock will divest from fossil fuel industries — CEO letter to investors states ‘climate risk is investment risk’

    BlackRock will divest from fossil fuel industries — CEO letter to investors states ‘climate risk is investment risk’

    Bill McKibben at The New Yorker writes:

    By one estimate, there’s about eighty trillion dollars of money on the planet. If that’s correct, then BlackRock’s holding of seven trillion dollars means that nearly a dime of every dollar rests in its digital files, mostly in the form of stocks it invests in for pension funds and the like. So when BlackRock’s C.E.O., Larry Fink, devoted his annual letter to investors to explaining that climate change has now put us “on the edge of a fundamental reshaping of finance,” it marked a watershed moment in climate history.

    He’s right about the financial future, of course—one can’t look at the clouds of smoke now obscuring the Australian continent and come away thinking that we can maintain our present course. But anyone paying attention—which includes investment-fund C.E.O.s—has known the score for years. What’s changed now are a couple of factors.

    This is impressive, and Larry Fink is completely right. “Climate risk is investment risk,” as he states in his letter. If we don’t start acting right now — we might not have an opportunity later. It begins here, with the reshaping of how we invest. Taming the river of money, will make considerable waves in the future.

    It wasn’t that long ago that CEO’s and leaders from blue-chip giants of the Business Roundtable were meeting to redefine the responsibility companies should play in society. There’s serious momentum, for the first time in nearly a century to re-think and re-model companies, businesses, and Wall Street — from the top-down. We’re entering an era where leadership is finally understanding just how important it is to put money where it matters most: engaging on middle-class wealth, diversity/inclusion and perhaps most importantly, environmental protection.

  • 16.6M Personal Details of Ecuadorians Leaked Online

    From Forbes:

    Some 20.8 million records, within 18GB of data, were exposed on an unsecured server located in Miami, Florida, which appears to be owned by an Ecuadorian company, according to the researchers. The entire population of Ecuador is 16.6 million; the difference can be accounted for by way of duplicated records and others which are not related to citizens of the South American country.

    Terrible news. You read that correctly. The entire population of Ecuador has now been put at risk of identity theft. This was about on par with the Experian Breach that exposed 15M consumers accounts which including social security numbers and tax information.

    At this point, the entire country of Ecuador should declare identity bankruptcy (that should be a thing), and re-issue everyone new personal identification secrets and give everyone affected notice. Oddly enough, this leaked private information also included Ecuador’s favorite squatter, Julian Assange.

  • GameStop Lays Off Over 100 People, Including Half of Game Informer Staff

    From Andy McNamara, Editor-in-Chief at Game Informer:

    Yesterday, as part of a GameStop restructuring plan, our parent company eliminated the positions of about 120 employees across its various offices. We lost seven members of our team – our cohorts, compatriots, and friends. They shaped us and made us who we are today, just like every member of the Game Informer team who passes through this company.

    Welp. That sucks. I haven’t visited a GameStop in years. Probably won’t visit one ever again to be honest. That’s not out of spite either. Hell, I barely play video games these days at all. Let alone buy used games or consoles. I’ll tell you what definitely do — read Game Informer online.

    I have a deep suspicion that these layoffs (or any others that follow in the coming 90 days for that matter), have to do the damned inverted yield curve:

    So for the curve to invert implies that investors are forecasting that something unusual will happen. Something that will push future interest rates down low enough to justify long-term yields being low despite the risks. Something like a future collapse in private sector investment demand that makes government borrowing cheap. Or something like a series of Federal Reserve moves to try to reduce interest rates and spur more economic activity.

    In other words, a future recession.

    And, indeed, if you look at the historical track record, every time the two-year/10-year inversion has happened, a recession has followed.

    Sigh. We’ll know if we’re in a recession in 6 months. The winds of change are pretty good that Trump will astroturf the U.S. economy in an ego-driven, exploitative ego-driven (and as a reminder, 100% totally avoidable) trade-war with China.

    Regardless, GameStop is shitty business, even if Game Informer is a great online and print publication. It’s umbilical cord to GameStop is financial poison. The parent company that manages the magazine is just absolutely terrible. The level of incompetence mismanagement is gargantuan. They closed hundreds of stores in 2012. GameStop was caught intentionally deceiving customers in 2017, and the company has been trying to sell itself to private equity firms for pretty much half a decade. Perhaps, instead of peddling snake oil — they should hire back the seven game journalists, and should spin off the publication wholesale to someone who cares. Microsoft, The Verge or shit, even Rooster Teeth are all wealthy contenders happy to expand their media empire. Literally anyone would benefit from the editorial prowess Game Informer brings to the gaming beat.

  • A Brief History of Doom

    No, not the video game. I wish we were talking about a space-invading alien crisis. Instead, we’re talking about financial crisis.

    I won’t lie either, the video below is a bit of a bore. Nothing is more boring that two older white men talking about 200 years of financial dismay in a slow tempo. But here’s the video anyways:

    TL;DW — Basically, the only reason crashes ever happen in the first place if because excessive private lending goes unchecked. Luckily, it hasn’t been too bad in a while at least as far as private lending is going. However, consumer credit, is spiraling out of control.

    Which all things considered is extraordinary given that the entire US Monetary system exists on the sole belief of faith in the credit of the US. So, next time you hear about the “the next crash,” think about how it relates to credit or private lending.

  • Slack Will Direct List on the NYSE in 2019

    It’s official.

    So, the trend begins. Tech startups will no longer IPO, but instead direct list. I’m kind of into it. It gets right to the point. There’s no ritualistic dance with investors, no large ceremonial bell ringing, no superficial breakfast or charade between bankers, investors, shareholders, workers, and founders.

    The public, the investors, the VCs and so on — they all get what they want on the big day, without the headache, fever and subsequent hangover from the IPO. You just list, and poof — you’re on the exchange. Simple enough.

    Matt Levine of Bloomberg:

    It seems to me that the IPO process is going through something similar: It used to be that, if you wanted to go public, there was one way to do it. Now there are two. But the choice creates the possibility of more choice, of unlimited customization, of tweaking each feature to get exactly the tradeoffs you want.


    It sort of makes sense that this would be a project led by tech companies, no? The story is that there was a big old legacy business that comfortably sold a standard package of features for a lucrative price, and then a bunch of tech startups came in and questioned everything; they unbundled the service so customers could get what they wanted rather than what the legacy players wanted to sell. It’s just that the tech companies didn’t do it as competitors, by offering the disruptive unbundled product, but as customers, by demanding it.

    Interesting, huh? Leave it to the startups to disrupt a 236 year old process.

    I can’t quite read the oracle bones on Slack, but it has serious potential. The jury is still out on their rebrand. While the rebrand stings, their engineering prowess and vision is impressive. Slack isn’t the new watercooler, there’s no money in that metaphor — Slack is the new vending machine.

    At any rate, it seems that direct listing will become the new norm for VC-funded tech startups. I have to say, I don’t hate the thought of it.