Blain's Morning Porridge

Corruption and Justice – Action Required.


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Blain’s Morning Porridge, Jan 20th, 2026: Corruption and Justice – Action Required.

“America may be blind, but the world will see who is involved and complicit.”

The difference between successful democratic economies and autocracy is that the rule of law works better. Autocracies trend towards corruption and inefficiency. Insider dealing and corruption is a fact of the financial markets – punishing it is a matter of the enforcement of justice and the willingness to do so. Europe is acting over Epstein. What’s happening in the USA?  

Friday is rant day. I can say what has to be said. Over the weekend I’ll be digging into the implications of Blue Owl gating its Alternative funds, and if that’s the Bear Stearns Moment warning of ructions ahead for Private Credit markets.

Investment is an exceptionally complex business. There are multiple considerations in terms of the risk/reward profile of any deal. The probabilities of success versus the likelihood of misadventure must be checked and reconciled against contracts, credit and data. Analysts dissect company accounts, statements and information on the parties to the trade. Lawyers have become MVPs (most valuable players) because successful investments are built upon a framework of law and order. 

While a gentleman’s word may be worth something in terms of the credibility to open doors, and trust is fundamental in any deal discussions, without the backing of sound contracts, strong legal systems, and the enforcement of justice – you are just gambling versus human avarice. The strength of the judicial system is a critical support and consideration in any deal.

History shows the economies of nations with strong and fair judicial systems tend to perform more strongly than autocratic states, where the old adage absolute power corrupts absolutely oft proves the case, leading to widespread corruption and underperformance across the whole economy.

Yesterday was a WTF day in the UK. It’s not every day a Prince of the Blood is hauled off thru Traitor’s Gate.


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Blain's Morning PorridgeBy Bill Blain