Some learnings at the intersection of banking, credit, & tech.
1) Banking & credit are the lifeblood of capitalism.
2) The most conservative lender is only one severe credit cycle away from failure.
3) Banks fail, Sovereigns default. Hundreds of banks fail every 10+ years.
1) Banking & credit are the lifeblood of capitalism.
2) The most conservative lender is only one severe credit cycle away from failure.
3) Banks fail, Sovereigns default. Hundreds of banks fail every 10+ years.
4) Be wary of banks that obsess overgrowth. Growth at an exceptional rate is a red flag in banking.
5) Government (Fiat) money ≠ Sound money.
6) Human civilization flourishes in times and places where sound money is widely adopted.
7) Bitcoin is a monetary system.
5) Government (Fiat) money ≠ Sound money.
6) Human civilization flourishes in times and places where sound money is widely adopted.
7) Bitcoin is a monetary system.
8) Lending is simple but it’s not easy – it’s a business.
9) Credit is older than money & Fintech.
10) The only way banks get in trouble is because of their bad loans.
11) The only good loan is the one that gets paid back.
9) Credit is older than money & Fintech.
10) The only way banks get in trouble is because of their bad loans.
11) The only good loan is the one that gets paid back.
12) The art of banking is to balance the risk of a run with the rewards of a profit.
13) There is no downtime in the Credit business.
14) Market forces and business/credit cycles can’t be defied, only managed.
15) Only benign Credit is sustainable.
13) There is no downtime in the Credit business.
14) Market forces and business/credit cycles can’t be defied, only managed.
15) Only benign Credit is sustainable.
16) Trust people, but trust math more.
17) Wealth is not about money, but about Options.
18) Money is a story. Very few people understand the money and monetary systems they live in.
19) Progress is cyclical in finance.
17) Wealth is not about money, but about Options.
18) Money is a story. Very few people understand the money and monetary systems they live in.
19) Progress is cyclical in finance.
20) Credit and debt play a big role in driving demand and economic growth.
21) Irrational lenders come and go, mostly they go.
Markets are driven by human behavior. Erratic markets lend themselves to irrational decisions.
21) Irrational lenders come and go, mostly they go.
Markets are driven by human behavior. Erratic markets lend themselves to irrational decisions.
22) Collective human emotions drive the expansion and contraction of our financial world in a market cycle.
23) A big business starts small. Technology and Capital are leverage.
24) Credit and debt are the two sides of the same coin and go together.
23) A big business starts small. Technology and Capital are leverage.
24) Credit and debt are the two sides of the same coin and go together.
25) Lending creates a self-reinforcing cycle that works upward in the first phase and downward in the second phase.
26) The economy is driven by Productivity and Debt Cycles (Short-term and Long-Term).
26) The economy is driven by Productivity and Debt Cycles (Short-term and Long-Term).
27) All Debt is not created equally. Productive Debt ≠ Unproductive Debt ≠ Consumption Debt.
28) Money never declines. Money just Moves.
29) The credit cycle is the most powerful force in finance.
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28) Money never declines. Money just Moves.
29) The credit cycle is the most powerful force in finance.
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