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stratechery.com
Nvidia’s Risky Business

It used to be the case that if you couldn't get loans from the government or from banks, you couldn't get much money at all. The problem was that Northern Pacific's capital needs were endless, and by September 1873, as credit tightened worldwide thanks to a crash on the Vienna stock exchange and the demonetization of silver, Cooke, who had been funding Northern Pacific from deposits in between bond issuances, could find no more buyers.

— Ben Thompson
1mo ago

It is not by augmenting the capital of the country, but by rendering a greater part of that capital active and productive than would otherwise be so, that the most judicious operations of banking can increase the industry of the country.

2mo ago
noahpinion.blog
Will China, Inc. be zombified?

Caballero, Hoshi, and Kashyap argue that evergreening was very bad for the Japanese economy, because it hoovered up scarce resources that better companies could have used to grow. With all of those crappy loans clogging up their books, Japanese banks couldn't lend to healthier companies. With big zombies like Daiei still able to employ large amounts of Japan's best managers, young scrappy upstarts were deprived of talent.

3mo ago

Underscored — save the words that stop you in your tracks.

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