Do you fall victim to soundbite economics?

Jacoline Loewen

At a recent book club, one of my girlfriends who teaches fashion and clothing at Ryerson, brought along a women's magazine from the early 1900s. I was startled by the quality of the content and the depth of the stories.

It made me realize that there has been a steep decline in the sheer complexity and structure of the written word. In comparison, the media and economic sources have simplified and shortened their features. It made me reflect on just how do we cull our daily information? How does this impact on how we view the markets and our investments?

Likewise, I do believe that the quality of economic analysis in financial markets has suffered in recent years. This is not a comment on the quality of my peers in the industry – there are many excellent economists and I do see the very best. 

However the trend in the broader market has been inexorably towards soundbite economics; superficial analysis with little attempt to challenge the wisdom of established authority or "rule of thumb" relationships. 
Call it the economics of the airport bestseller (am I bitter that my books are not stocked at Pearson? Maybe). 

We can see this in the way markets overreact to underlying data, even in the questions that are asked in the media. 

And do not get me started on the blogosphere.

Is it getting too late? The market is late in the cycle prompting investors to ask this question.

I am concerned about Canada says Niall Ferguson

With a flair for the dramatic, Niall Ferguson, is saying he is concerned for Canada. Ferguson likes to remind us that he predicted the 2008 crisis and was shouted down. He is now sounding a warning for Canada. Read the full article here.

Ferguson is a senior fellow at the Hoover Institution, Stanford University in California and a senior research fellow at Oxford. He is a prolific author on history, economics and colonialism and has written and presented five major television series, including The Ascent of Money, which won the 2009 International Emmy Award for best documentary.
"It seems to me unnecessary because Canada doesn't have a major fiscal problem," he said. "It's not as though Canada needs to sell its assets, so I don't see the need for a major realignment of its position as the United States' little brother."
On a recent visit to Australia, Ferguson recalled remarking to an Australian acquaintance: 'You realize you're gradually becoming a Chinese colony? "He said, 'No mate, it's more like a semi-autonomous republic. It's a good place to start (when discussing Canada-China relations)."
"I don't think China makes a massive distinction between Australia and Canada," said Ferguson. "These are thinly populated (nations) with huge quantities of resources that China needs. The question (for China) is: How best to access those? Do you do it by straight forward purchases on the open market or do you want to own them? And if you own them, how far can you go before there is a political backlash. This is what China is asking about a lot of countries."

Fintech innovation and Switzerland

It was an honour to be the guest of the Switzerland Innovaton Enterprise and the Swiss Consulate to their Toronto conference. We were talking Fintech and innovation.

Jacoline Loewen

In the past month, the Switzerland Blockchain Business Council (GBBC) opened an office in Geneva, the group announced in a press release. Launched in January 2017 during the World Economic Forum Annual Meeting in Davos, the GBBC is a platform bringing together leading businesses and executives from around the world to educate on the latest innovations in blockchain technology and advocate for its widespread adoption. 

It serves as a global forum for information, collaboration and partnerships. Leading full service blockchain technology company The Bitfury Group and international law firm Covington are behind the initiative.

A global center for international cooperation

By locating in Geneva, the GBBC will work side by side with an array of international organizations active in uniting global causes and industries, such as the World Economic Forum (WEF), the World Trade Organization (WTO) and the World Health Organization (WHO). 

Speaking on the decision to house the platform in Geneva, Tomicah Tillemann, GBBC Chairman, explained that the Swiss city has “a long history as a place where people come together to reach consensus”, and that it is “already home to some of the world’s most important and effective international institutions”. 

How to Use Grief to Change the World

A father who lost his three daughters to Middle East violence has turned this tragedy into change for the region. Last night, I was part of The Daughters for Life Gala fund raiser which educates middle eastern girls here in Canada. The belief is that these women will change the region's attitudes to hatred and genders.

Jacoline Loewen, Daughters for Life Gala

What a steep hill Izzeldin Abuelaish has chosen to climb.
Izzeldin says it was the death of his daughters which pushed him to create change. The women at my table agreed that to push on after such a loss due to a bombing, was remarkable.
We then listened to the scholarship winners all in STEM studies at Canadian Universities. These young women travelled to Canada to go through university programs donated by Brock, Trent, Laurier and York. They each made us laugh, cry and understand that maybe, just maybe, this intervention would be a keystone to changing the whole Middle East.
I just know that if one of those girls was my daughter, I would be very proud of her. I also believe that each of these girls will indeed make a big difference.
Then Izzeldin gave Margaret Atwood a Lifetime Achievement award.  Margaret epitomizes what one woman can achieve. Her book The Handmaiden's Tale did inspire me to move beyond my original life goal to be a good wife and to get an MBA and get into the male area of business - finance.
Margaret Atwood's speech was a reminder of how far I personally have journeyed while reading her books all the way.

Daughters for Life Lifetime Award Recipient

When I - at first read Atwood - I did so reluctantly. Atwood was holding up a picture of Canadian society that I did not want to acknowledge. She also showed females in not always a positive light, showing our deepest fears and pain in our relationships. Such disappointments because of our place in society. She really spelt out for me that I needed to change and to take the harder road. I learnt through her novels how women needed to get their own income and it did inspire me to have a good career. Through out most of my adult life, Margaret has inspired me. My book club is currently reading Alias Grace and I look forward to our discussion, but my best book of hers is Oryx and Crake, a Booker Prize winner.
This evening, Margaret reminded us how far Canada has come in its gender roles. She told us that early in her career she was advised to stop her scribbling and find a good husband. She did not stop her scribbling and she did find a good man though - Graham Greene, her partner for decades. I am thankful she did find true love and she shared her views so bravely.