Sree Vijaykumar | From the Editor's Desk
Imagine a bank heist where the robber takes out a gun, asks the bank staff to put money into a bag, only to be told that they do not have any cash. When the robber looks confused, he is directed to a poster on the wall that proclaims this a "cash-free" location. "It's true," the manager tells him. "Sorry." Well, this is what happened on April 22, 2013 at Stockholm's Ostermalmstorg branch of Skandinaviska Enskilda Banken. Crime is the single most important consideration in the global transition to cashless. The criminal economy depends on the anonymous, untraceable nature of cash. Indeed, much of the cash in the world, maybe most of it, is simply unaccounted for. The World Bank estimates that about a third of the cash in most countries circulates underground, in black markets and through illegal employment. Take it away and thieves have no foolproof way to sell their stolen goods, drug dealers no way to hide their deals. Atleast till a new sophisticated cyber-criminal emerges! - Comment | |
Sree Vijaykumar | From the Editor's Desk
There's a song by Wu Tang Clan called Method Man where one of the methods of torture they talk about is, 'I'm gonna sew your rectum shut and keep feeding you', that's what it's like today to be an LP (the investor class that VCs raise money from). That's not too surprising a take of the current state of the technology market. There have been a fraction of a fraction of the number of technology IPOs the US market typically sees in the first part of the year. That means that liquidity for venture investors - and, in turn, LPs, has started to stall, and that means that LPs might start looking at alternative asset classes - Comment | |
Sree Vijaykumar | From the Editor's Desk
While business leaders like Richard Branson and Elon Musk have taken to social media like a duck takes to water, others have not been so successful. Many CEOs still consider it a waste of time, others just don't feel comfortable being themselves online. This article argues that one of the best uses of social media for business leaders is when managing a reputation crisis. People love hearing directly from the CEO, but it should be often and in a way that seems natural, not like a press release. A credible social media voice from the top can also attract talent and customers. And today, we launch our very own social network, focused on news and knowledge - taggit! It's the home for the freshest stories from around the world. Check it out here. Let us know what you think, by emailing us at info@tradebriefs.com - Comment | |
Sree Vijaykumar | From the Editor's Desk
Smart money is not looking so smart right now. Hedge funds in the US have lost 0.4% in the past quarter, while the S&P 500 has returned 1.4%. Even the gold standard of Wall Street, Goldman Sachs, has returned 6.4% on equity, as opposed to the 30% average it delivered before the financial crisis. Debt-fueled risk-taking is being controlled through regulation and hefty asset management fees are being questioned when returns are so low. Outsized fees and wages associated with finance, in turn, could be one of the reasons why overly large financial sectors seem to have a deleterious effect on economic growth. Some theorize that when nosebleed pay packages are the norm in the financial world, it starts to siphon off talented workers who otherwise would have contributed to real economic productivity somewhere else. - Comment | |
Where risk-takers thrive As a lecturer, entrepreneur, mentor and angel investor, Ajeet Khurana has a long and rich history with start-ups. In this email interview, he looks at the pros and cons of B-school students joining t |
Why China is prone to bubbles The issue is surplus liquidity—what’s been described as China’s “great ball of money,” which bounces from asset class to asset class as if in a pinball machine |
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