Showing posts from June, 2017

Russia Disrupted US Elections to Fast Forward Global Warming + generate an Oil Windfall

Capitalism 101- Final Exam

Q: Russia's owner Vladimir Putin (a self-described humble public employee who lives off his meager government salary,) is looking to maximize profit. Explain, in economic terms, why hacking the American election and disseminating fake-news in favor of one candidate, might help get Vladimir the 500 ruble a month raise he has requested from his fellow Russian oligarchs shareholders.  

A: The Arctic Ocean is host to vast untapped oil reserves and minerals below a surface that for eons has been covered in ice. As global warming speeds up, and the sea ice recedes, suddenly previous untouchable resources open up.
Due to her geography and sheer size, Mother Russia holds more rights to the Arctic Ocean area than any other country, thus making it in her interest to see the ice melt away enabling drilling for oil and gas before the resources are replaced by renewable energy, and lose their value.
Additionally, Mother Russia is not exactly the warmest place on the…

An Example of How The BlockChain will Spur Economies in Eastern Europe + other Corrupt Countries

Eastern Europe has long been a haven for organized crime and relative lawlessness, and a notoriously risky and difficult place to do business.
I was in the Ukraine and can recount a young businessman describing why, despite the need and overwhelming desire from the country's citizens for foreign investment, next to none was taking place. He then explained why any company that did, would be crazy (or stupid) to do so.
"Let's say you and I wanted to start a hotel, a serious investment which takes a lot of planning, money, and a ten year forecast. So we get the financing together, we bribe all the necessary officials, we get our deed to the land, and we start work. A year later, our hotel almost done, some local "businessman" shows up with the exact same deed to the land, only it says it is from one day earlier than ours. We go to court with all our documents, evidence, and high priced lawyers, but it makes no difference, we lose the case and our investment. The go…

What is The Blockchain- and How Does it Work in Simple Terms

So you've heard of Blockchain? For those unaware it's the technology underlying the cryptocurrency bitcoin, but what exactly is it, and what task does it perform and frankly, why all the hype?
Blockchain Simply Explained Blockchain is a distributed ledger with transactions verifiable on thousands independent nodes. Essentially you are able to instantly check and verify claims to an asset, the chain of ownership, etc. whether that be bitcoin, a house, stocks, etc. Trust comes not from a single authority in this case (be that a title company, Western Union, Wall Street) but rather is decentralized with thousands of independent operators paid to come to agreement on transactions and the order in which they took place.

A Stroll through Deals Throughout History

The Old West, the year 1859: a stranger trots into town and wants to sell us his horse at a reasonable price. Claims he bought it last year in Las Vegas from Betty-Sue Wynn which activates our intuitive lie-detector, mainly be…

Amazon's Valuation Showing Signs of Bubbling After the Whole Foods Acquisition

Okay, so Amazon buys a company (Whole Foods) at a decent premium to its current valuation, and their valuation goes up.
In fact, market capitalization increased by more than $30 billion on the day the Whole Foods acquisition was announced; more than double the grocery chain's price tag, largely attributed to investor enthusiasm over the deal.
That's like me, a vaunted real estate developer, paying 20% above market price for a property and investors immediately saying, "He's such a genius! We're going to pay Twice what he paid for the property."
Now, granted Amazon is obviously large, and the amount paid for Whole Foods not earth shattering in relation to its valuation, but this doesn't take  away from the fact this action in the stock is seriously Bubbly. 
There are two possibilities: all these so-called brilliant analysts completely missed this possibility and are now falling over themselves to properly valuate Amazon shares as it gobbles up Whole Foods O…