finance
Money talks; reviewing the global economy, government spending, taxes, and economic policy that affect our social and political future.
The Downsides of Data Driven Decision Making
In life, and especially in business it is quite fashionable these days to hear people claim that they make "data driven decisions." Making data driven decision sounds like a very smart thing to do. Certainly much smarter than its regular language translation, "using the facts to determine a course of action" which sounds awfully obvious and boring. Definitely not something one would see published in the Harvard Business Review. Despite its obviousness it would seem hard to argue with the sagacity of making "data driven decisions", after all who would not want to use all of the information at one's disposal (data) in deciding which to select of the many possible alternative options that are available (decision making) for doing whatever it is one is trying to do? Usually that thing one is trying to do is make money or some derivative thereof. Nothing gets me more fired up for an argument than a thing which is hard to argue with. Therefore, below I present to you two arguments against data driven decision making. Of course I am in general a big supporter of data driven decision making and in no way mean to suggest that it is not (most of the time) the smartest way to go about making decisions in just about any aspect of one's life or career. However, that said, it is by no means guaranteed to be the best way to make decisions or even the smartest way to make decisions in every case. As you will see if you continue on, data driven decision making has at least two highly relevant downsides that can make it the less than optimal mechanism for deciding things. Even if less than optimal in some specific instances, it is still likely never a bad way to make a decision, it just won't guarantee that you always come out on top. Nothing ever does though does it?
Everyday JunglistPublished 2 years ago in The SwampBeing an Undocumented Immigrant is harder than most think.
I am not saying anyone's views are wrong making this post. I know we all have our opinions on this matter and all I ask is to keep it respectful, please.
Kerrie G.DiazPublished 2 years ago in The Swamp- Top Story - August 2022
What Really Causes Inflation Made Easy to Understand
I will keep this short and simple because otherwise, you will not be here for long. Although we should not simplify complex social sciences like economics, to understand what inflation is, what causes it and why we are experiencing it, we must make these concepts more accessible to everyone.
Anton BlackPublished 2 years ago in The Swamp Accounting Rules Stifle Innovation
The system today "According to the Financial Accounting Standards Board, or FASB, generally accepted accounting principles, or GAAP, require that most research and development costs be expensed in the current period." For as long as their have been accounting rules the idea that R&D activities must be entered on the costs side of the ledger has held sway. To my knowledge none or only a very few have ever dared question the wisdom of this approach. After all, it seems obvious, R&D (in its most basic form) costs money, it does not make money, not directly at least. If it does make money it is only indirectly through the products and services that eventually come to market as a result of the money spent on R&D. Much like a building or other capital expense, R&D is viewed as a tool that can be used to make money, but not as a money making enterprise in an of itself. A building, however, is built, and maybe modified some over time, but it does not really do anything. Not anything active at least. It just exists, and is used by a business which occupies it to conduct business, to facilitate the doing of business. In the end it just sits there and does nothing but "exist as a building" On the other hand, R&D, some activities of which can be capitalized like a building (see linked article above for the gory details) is a very active thing (hence the reason we call it an activity or a process). It does much more than just "exist as R&D" waiting for some business to occupy it and use it to make money. Their are alternative R&D models of course that do exist, some of which set up R&D as a profit making enterprise with its own P&L, but these are few and far between and are typically highly risk averse, short term project focused, and significantly limited in scope. Nothing wrong with that model and it can be useful, but it is far from the norm and if all R&D were set up in this manner it is hard to see how real "move the needle" type innovation could actually happen.
Everyday JunglistPublished 2 years ago in The SwampWhat is the difference between economics and finance and what do they study respectively?
Let's play a small game with you first, but don't underestimate this game. It is no exaggeration to say that if you understand the connotation behind this game, you have already understood half of the essence of world finance.
Inflation also has positives
Amid the hysteria about inflation, its easy to miss the fact that it's not just a source of suffering for people. There are in fact winners when there is inflation. The big ones being people with debts.
Buck HardcastlePublished 2 years ago in The SwampDigital nomads ≠ Tax dodgers
Digital nomads, by definition, are people who use telecommunications technologies to earn a living and, more generally, conduct their life in a nomadic manner. They often work remotely from foreign countries or any other place than a traditional office. Whether rightly or wrongly, digital nomads have appeared to gain a reputation as tax dodgers. Many people assume that digital nomads do not need to file tax returns or pay taxes. However, if you are one of the digital nomads, you should pay attention to the following example.
Samuel LaiPublished 2 years ago in The SwampA Look At The Coming Recession And Surviving The Rough Patch
The realities about our economy may have people worrying, having sleepless nights, and generally stressed. As gas and energy prices remain out of control and prices of food and other consumer items skyrocket, the economic news is constantly grim.
Jason Ray MortonPublished 2 years ago in The Swamp- Top Story - May 2022
Economic collapse is upon us
I remember being a kid when my parents had to go through a financial crisis. It was back in 2008 and it was caused by the American housing bubble. Back then I only felt it partly because my parents made sure that I and my sister were well-taken care of.
Drake FlyerPublished 2 years ago in The Swamp Billionaire Trader Ken Griffin Navigates A Flock Of Black Swans
Ken Griffin is staring pensively out a wall of windows on the tenth floor of a Midtown Manhattan office building, one of three locations in New York City occupied by his $47 billion Chicago-based hedge fund, Citadel. It’s early March. Vladimir Putin’s mechanized assault on Ukraine has stalled; he’s now making veiled threats about nuclear strikes. From Griffin’s vantage point there’s no mushroom cloud on the horizon, but the prospect is deeply worrying to the financier.
irinelvocal2Published 2 years ago in The SwampWorking as a Financial Adviser
I was so to speak in the belly of the beast. A place where the neo-liberal constitution was on full display every single day; an investment firm. There, during my training and short tenure as a financial adviser I was exposed to a culture of individualism, a reverence of property rights, a mindset of profit maximization, and a tendency to cut costs. To summarize my entire life was to be oriented around a market logic.
Arjuna FournierPublished 2 years ago in The SwampA Possible Reversal from Edge of Recession
Do you believe that the economy is in such overblown form that a bubble is going to burst? Investors estimate that the economy will enter a recession with a 50% likelihood based on the economy’s previous exponential expansion and contraction tendencies. It appears to have taken a long time to complete, but has recently been accelerated by high inflation and extremely high rising oil prices as a result of the Russian War, both of which have sped up the process.
EstalontechPublished 2 years ago in The Swamp