5 Comments
User's avatar
DINA's avatar

3. Japan's stock market 1989 onwards:

When Iraq invaded Kuwait in 1990, Japan lost its main supplier of oil and petrochemicals, being forced to undertake new supply contracts at higher prices.

To support its people living in hotels worldwide and the war effort, Kuwait had to unload billions it had invested in Japan.

Japan paid for most of Desert Storm's costs. PLS see General Norman Schwarzkopf's book.

In one year Japan's economy was shaken by three financial shocks all of severe, long-term consequences. It has yet to recover.

Expand full comment
tkettle220's avatar

lot of airline stuff, have you seen video about airline rewards programs? https://www.youtube.com/watch?v=ggUduBmvQ_4

pretty interesting, although they make it sound like flying planes is a side business, but really it's more like pushing sales of seats into points has a bunch of benefits since it's basically money but not treated the same as money by law or consumers

Expand full comment
Ben Marrow's avatar

Yes, I find the business of airlines fascinating. I knew that some airlines lose money on the "flight" segment, but the size of the loyalty programs was much larger than I had thought. E.g., American Express paid $6.5B to Delta last year, and loyalty is about 20% of their revenue (https://s2.q4cdn.com/181345880/files/doc_presentations/2023/06/27/Delta-Beyond-2023-Investor-Day-vF-6-26-23.pdf)

Another post you might like: http://jpkoning.blogspot.com/2019/08/starbucks-monetary-superpower.html

Expand full comment
tkettle220's avatar

yea also I wonder what percent of these points ever get spent. I'd guess the effect of ppl just never redeeming airline/starbucks points is actually the most powerful force here

Expand full comment
James H. Marrow's avatar

Fascinating stuff!!!

Expand full comment