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Showing posts from May, 2015

The Price For Sacrificing Our Youth

Like many, the rioting in places like Ferguson and Baltimore has troubled me.  These scenes must cause all Americans to give pause and consider what it says about our society.  The partisan media outlets feed us spin.  On the left, we hear about a justified response to repeated racist police actions. On the right, we hear about the need for harsher police tactics and respect for rule of law.  Of course, there are grains of truth in both; however, I think that we must dig a bit deeper to properly understand how it is that we have arrived at this moment.

My Biggest Mistakes

When we think of our biggest mistakes we rarely smile.  I do.  I look back and think of the many, many things I’ve done in my life that didn’t end up as well as I had hoped for and I think to myself what a truly rich life I’ve lived thus far and how much I’ve grown, mostly as a result of those missteps.  I wasn’t always inclined this way, but over the years I’ve learned.  Like many, I used to either try to pull the rug over my mistakes or wallow in self-pity when reflecting upon the prices that I’ve paid because of them.  Neither of these paths served me very well.

The Illusion of Liquidity

Last week I attended the Milken Global Conference in Beverly Hills – a truly amazing experience for learning from and meeting with exceptional individuals from many walks of life.For me the most interesting topic was the discussions around the concepts of liquidity in the financial system, which in my mind has always been one of the most broadly misunderstood concepts in finance.For those of you readers who are not familiar with the jargon of finance, the term “liquidity” refers to the degree to which an investment can be readily sold for cash.Cash, in point of fact, is the most liquid of all investments.The desire for liquidity should rightly stem from investors’ needs to acquire the necessities of their lives, such as shelter, food, education, etc, each of which must be acquired for cash.In my career it seems that the desire for liquidity on the part of investors has far outstripped their actual needs for it, and has led to certain very interesting phenomena.