Blankfein’s view—a more
standardized market actually helps profitability: perhaps
counter-intuitive, but here is the idea: standardized market drives down simple
products’ margins, but it makes possible much more tailored and useful products
better in value and complexity. Instead of charging spreads on simpler
products, an innovative bank can now charge, let’s say, 2% on a new product
once not possible to construct. In other words, GS plans to use the freer and
cheaper market to facilitate complexification and new OTC businesses. [Note: A
refreshing perspective, and I agree!]…Source: http://dealbreaker.com/2012/11/goldman-is-looking-forward-to-making-less-money-on-standardized-derivatives-so-it-can-make-much-more-money-on-non-standardized-derivatives/
Mark Cuban is moving
out of Facebook: After receiving a $3,000 bill for reaching 1 million
people, Cuban is fed up and decided to act—by howling his 70 or so companies out
of Facebook. As the social network makes it harder for brands to reach people
without spending big money, Cuban said the site devalues brand, does not allow
100% reach, and suffers from a user engagement problem. He is not a fan of FB
stock either. [Note: Or maybe he is playing hardball for a bargain]…Source: http://readwrite.com/2012/11/13/mark-cuban-facebooks-sponsored-posts-are-driving-away-brands
Redefine how network
data is shuffled: As the world juggles and transfers more data, the network
operator demands more efficiency and control over the shuttle traffic by
programming the rules themselves. OpenFlow, founded Guido Appenzeller Ph.D. of
Stanford, lets one program networking equipment in much the same way one programs
computers, smartphones, and tablets. Many established names are jumping on to
this new standard. [Note: where Google goes, other follow]…Source: http://www.wired.com/wiredenterprise/2012/11/big-switch/
Chinese spirit chases
Xi Jinping’s rise: By a stroke of fortune, China xi jiu, a 60-year-old
distiller of baijiu, has the same name as the incoming president’s surname. Under
the assumption that once Xi Jinping takes power lots of people will want to
give Xi Jiu as gifts, the company launched a big marketing campaign for
prime-time advertising slots. The baijiu tastes like Moutai, the most famous of
all baijiu brands, but is a lot cheaper. [Note: Baijiu is in a league of its
own]…Source: http://www.ft.com/intl/cms/s/0/bd636f08-2d79-11e2-9988-00144feabdc0.html#axzz2C4091eK0
The problem with information:
“The problem with information is not that it is diverting and generally
useless, but that it is toxic. We will examine the dubious value of the highly
frequent news with a more technical discussion of signal filtering and
observation frequency farther down. I will say here that…a minimal exposure to
the media as a guiding principle for someone involved in decision making under
uncertainty. If there is anything better than noise in the mass of “urgent”
news pounding us, it would be like a needle in a haystack…Source: Nassim Taleb
in Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets:
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