Thoughts on 2014 – Moral Hazard PLUS – Part 1

Reflections on 2014 As a behaviourally focused economics publication we have been very quiet and inactive during 2014. A year of reflection and introspection, however, we are ready to resume service, with vigour. And what better way to start than with a reflective piece and thoughts on the biggest risk we believe are developing under … Continue reading Thoughts on 2014 – Moral Hazard PLUS – Part 1

An Ownership Revolution is required

We have been following the G20 'get those naughty multinationals in the tax tent' debates raging for a few months now, with amusement we have to add; here at theMarketSoul and have the following short thought piece to contribute to the debate. We know the 'outrage' really is all about the what the OECD calls … Continue reading An Ownership Revolution is required

Behavioural Consequences – The UK Bond Market Rigging Scandal

Thoughts on over regulation and disincentives

Transaction Cost Economics is ruining everything!!!

...or is it regulation and process not taking into consideration Transaction Cost Economics? This post is really a little rant. We just tried to contact a well known global financial services institution in London in order to enquire about the opening of a corporate bank account. We have a few why questions and cannot figure … Continue reading Transaction Cost Economics is ruining everything!!!

Risk Management Ideas

Risk has as one of its essential elements TRUST as a foundation. Trust on the other hand has many other factors that interplay and interact on it. Markets are created when there are needs that are not immediately met from you local environment and therefore scarcity exists.  Market participants step in to fill this 'needs' … Continue reading Risk Management Ideas

Commentary on newly proposed UK Financial Regulation

Commentary on the new powers and tools of the Bank of England as announced by George Osborne during his first Mansion House address

The Cost of a ‘Licence to Operate’

Reputation Risk and damage mitigation must be some of the watch words and the top priorities at BP at the moment. So how are they faring in the management this agenda item? What ‘price’ or cost must we attach to a ‘licence to operate’? It is interesting to observe behaviours of Chief Executives under the … Continue reading The Cost of a ‘Licence to Operate’

Short-sighted: Actor behaviour in the market for competitiveness

Competition has to be guided, controlled and focussed. How do we manage this process and in addition attract talent to sustain organisations deep into the 21st Century?

Does Law inform or enforce culture?

If ‘the Law’ is the codification of cultural norms and practices, does the Law then not inform culture? Policy, social malice and engineering of social outcomes bend these laws into legislative blunt instruments designed to enforce cultural behavioural changes on a grand scale, trouncing the common law of good judgment, neighbourly relations and common sense … Continue reading Does Law inform or enforce culture?

The Sustainability Gene

The CBI published a report entitled "The shape of business - the next ten years" in late 2009.   The authors identified 5 key drivers affecting the business environment, namely:   1.  Changing finance and capital conditions, 2.  The decline of trust in business and markets, 3.  A less benign macroeconomic environment, 4.  Social and … Continue reading The Sustainability Gene

The Markets do not need certainty

There has again been a short period of drift and volatility in 'The Markets' recently. And yet again we have heard the old refrain: "Markets hate uncertainty". This we assert is yet again a misused turn of phrase. It is not uncertainty that markets hate, because inherent within market processes and market operations is the … Continue reading The Markets do not need certainty

The Value of the Synthesist (as opposed to the Analyst)

We had some very rewarding conversations recently with business partners and peers regarding the Value of Synthesis versus Analysis. Synthesis we believe to be a ‘higher level’ skill and experience set than traditional analysis.  Synthesis requires a natural ‘incubation period’.  Very few people are natural ‘synthesists’.  You grow and mature into a ‘natural Synthisist’. Analysts … Continue reading The Value of the Synthesist (as opposed to the Analyst)

Increased Friction Costs

We start today’s article with a cry for a return to common sense and a reduction in the unnecessary Friction Cost in the economic system (especially here in Britain). Friction Cost, in economic terms is defined as: The implicit and explicit costs associated with market transactions. The total cost, both direct and indirect, of a transaction after commissions, interest … Continue reading Increased Friction Costs