Market Insight

For those of you who are into the markets, economics, and game theory I found a great book called "The Undercover Economist" by Tim Hartford. For those of you who, enjoyed "A Short History of Nearly Everything" by Bill Bryson, this book explores the economics of things that you have always wondered about but didn't know it was economics. Who really makes money from fair trade coffee? Why is it impossible to buy a decent second hand car? How do the Mafia make money from laundries when street gangs pushing drugs don't? Who really benefits from immigration? Looking at familiar situations in unfamiliar ways, The Undercover Economist is a fresh explanation of the fundamental principles of the modern economy, illuminated by examples from the booming skyscrapers of Shanghai to the sleepy canals of Bruges. It is a really great book.

I also came across an article comparing the investment banks to the bands of the world. Here is how it goes.


1) Goldman Sachs = The Rolling Stones but Goldman could almost be U2
2) Citigroup = Ozzy Osborne Both Citigroup and Ozzy are growing old disgracefully; Citigroup's many and varied brushes with the authorities around the world make the bank worthy of an alliance with the former Black Sabbath singer.
3) Deutsche Bank = Fleetwood Mac Immensely profitable? Check. Years of infighting and not communicating with one another? Check. Badly in need of a style makeover? Check. It's Fleetwood Mac.
4) JPMorgan = Radiohead Too clever by half, and needing another big hit to remain relevant? It could almost be REM.
5) Barclays Capital = Oasis The capital-markets division of Barclays Plc could be the Red Hot Chili Peppers; chaotic in the 1990s, gained some focus in the early years of this decade, now looking a bit bloated and self-indulgent.
6) Morgan Stanley = Coldplay Deadly earnest. Blue-blooded. Well-heeled. Regularly at the top of the charts, though even fans have the nagging sense they might just be going through the motions. Morgan Stanley and Coldplay are made for each other.
7) Merrill Lynch = Madonna Both Merrill Lynch & Co. and Madonna peaked in the 1980s and have been irrelevant since the 1990s, notwithstanding umpteen attempts at reinvention.
8) HSBC = any boyband'nuff said
9) UBS = Phil Collins The bank and the former Genesis drummer/singer are both rich, both based in Switzerland, and no one with any sense gives a hoot about either.
10) Commerzbank = David Hasselhoff Commerzbank AG and David Hasselhoff are huge in Germany. Scientists have failed to explain why.

Very astute, and very funny . . .