Who dares to mention the word recession anymore? Now, we have another robust jobs report just when the economy seemed to be cooling. Fortunately, there is a consistent explanation. The velocity of money. The velocity of money fell to almost 1.0 during the pandemic, the absolute floor. Velocity was never going to stay at one in a fractional banking system. This paper shows the strong relationship between velocity and real interest rates and the loan-to-deposit ratio.
I put this analysis together to help me understand the COVID-19 situation while I am confined to shelter in place in California. I am sharing it with other managers to help decision-makers understand this fluid, ever-changing situation. Let's all stay strong. #beatcovid19 #beatthecoronavirus #covid19 #staystrong
Libra: Facebook being hoisted with their own petard. Facebook has credibility issues with Congress starting with a 2011 settlement with the Federal Trade Commission for deceiving consumers and this year it has set aside $3 billion for violating the consent decree. Now, it wants Congress to believe that it will not share information from Calibra wallets with Facebook clients!
Many financial firms and investment managers want to advertise with social media but are confused about the regulations governing advertising for investment products and services – especially rules for social media. On July 10, 2018, the Securities and Exchange Commission (SEC) reiterated their view that the Advertising Rule 206(4)-1 applies to social media with settlements against five firms for using testimonials to promote their firms or investment products.
Do you want to use social media to disseminate information about your firm or ideas, but you are unclear about the SEC’s rules for using social media to disseminate investment information? Is this lack of clarity preventing you from using social media to disseminate information?
If so, you are reducing your firm’s opportunities for developing credibility and authority with investors. There are four basic rules that can prevent violations of SEC rules.
Updated on August 15, 2018 to reflect Elon Musk's use of a blog page on the Tesla website to publish his explanation for sending out the August 7th tweets regarding his plan to take Tesla private.
Social media managers for corporations and investment organizations just received an important lesson from Elon Musk. On August 7, 2018, Musk sent out the following series of tweets to announce that he was planning to take Tesla private at $420 a share. This was significantly above the $341 a share trading level on the day before the announcement.
