Tuesday, June 23, 2015

Q&A - 23/6

Joseph Stiglitz

It is not money that makes the world go around, but credit.

Yes

Two posts - Money and Credit Theory of Money.

Especially recommended is the video at the end of the first post.

Question

Why do people look at growth to judge a company's success? Can't they make do with what they have?

It is a signal

Growth, if not phony, can indicate the company's structure for that point in time is good - otherwise they would not have been able to jump to that next phase, stretching themselves.

Starbucks grows, I see new stores in Germany, and you peer inside you see why - free Wifi, good customer service.. Few years back they would not accept ATM bank cards, I remember bitching about it to the baristas a few times -surely others did as well-, then boom; SB started accepting bank cards in a matter of weeks. There is another coffee store chain here, Einstein Cafe, their Wifi is cumbersome to use - hourly, u enter some user/pass combo, given to customers on a paper card - they nag customers if they don't "buy anything" for a long time, and they ask you to buy something for another hour of Net use. And surprise - Einstein is not growing.

(I do like their rucola cheese baguette though... Mmmmm.. rucola cheese..)

Health Apocalypse Now

Link Much of my time for the past year has been spent navigating the medical maze on behalf of my mother, who has dementia. I obser...