Gene Expression: James Watson Tells the Inconvenient Truth: Faces the Consequences

File this in the sad but true file. The problem must be understood in order to be addressed.

Gene Expression: James Watson Tells the Inconvenient Truth: Faces the Consequences

What is wrong with the Media

Why can't we have a better media: How bad is Tim Russert.

Tim Russert: Stop the Inanity | The American Prospect

The Weakness of Quant Funds - Portfolio.com

Quant funds are just about systematic investing using clearly identifiable factors. Why do people think that this type of investing should go away and people should return to throwing darts.


Finance Blog - Market Movers by Felix Salmon: The Weakness of Quant Funds - Portfolio.com

Why do we have mercenaries?

Killing is not something that should be subcontracted.


Economist's View: "Should We Use Mercenaries at All?"

The middle is moving on up | Free exchange | Economist.com

Does the absolute level or is it inequality that matters?

The middle is moving on up | Free exchange | Economist.com

Accrued Interest: The Future of CDOs Episode I: Turn her around!

Accrued Interest: The Future of CDOs Episode I: Turn her around!

Risk dispersion did not work.

naked capitalism: Securitization Ain't What It Used to Be

Dancer

The Right Brain vs Left Brain test | PerthNow

On Watson

Angry Bear

Fryer and Levitt on Testing for Racial Differences in Mental Ability

No different at one year, but dramatic at three years. Why?

fryer_levittbabiesrevision.pdf (application/pdf Object)

Mechanism Design

Why You Should Care About the 2007 Economic Nobel | The American Prospect

A visual representation of Oil Usage.

The Oil Drum | Getting a Grasp on Oil Production Volumes

Genial Old Elf?

Not the Vikram I know.

The Epicurean Dealmaker: Oxymoron

Role of Securitization in Mortgage Lending

The Chicago Fed writes:

cflnovember2007_244.pdf (application/pdf Object)

What is VAR

There surely are a lot of people trying to figure it out.

Finance Blog - Market Movers by Felix Salmon: VaR Question of the Day - Portfolio.com

Another good idea that will never happen.

Why do cities and states continue to pay outrageous sums to keep sports franchises and walmarts.

Economist's View: "Congress Should End the Economic War Among the States"

Wiiliam Poole of St. Louis Fed: Real Estate in the U.S. Economy - Poole Speech - St. Louis Fed

Some key take aways:
Construction is only 5.5% of employment and 4.8 % of profits( less than in 1998)





Real Estate in the U.S. Economy - Poole Speech - St. Louis Fed

The Nature versus Nuture Debate on Development: Farewell to Alms

A review of speech by Gregory Clark on Farewell to Alms.
Clark comes down on cultural explanation. A little more optimistic because cultures can change.



Goodbye Lusaka, Farewell to Alms | Free exchange | Economist.com

A "Minsky Moment"

Why stability is destabilizing.
Three types of borrowers:
Hedge Financing: Can pay both principal and interest out of cash flows.
Speculative Financing: Can pay interest but must cover principal by new financing.
Ponzi Financing: Cash flow covers neither interest nor principal. Must sell assets or borrow more to cover interest payments.

When the crash comes

The Mentally Ill, Behind Bars - New York Times

The rate of institutionalization has not changed much. But the rate of incarceration has changed.
The law of unintended consequences for closing large institutions for the mentally impaired.


The Mentally Ill, Behind Bars - New York Times

Where is the Wealth of Nations?

A review of a not so recent World Bank Paper on the source of growth and wealth.

Angry Bear

Race, IQ and Acheivement

Megan McArdle (October 05, 2007) - I am my own lodestar

Why does Rush Limbaugh still have a job?

Army of Dude: Rushing Deeper Into The Hole

Review of "The Israel Lobby"

Grasping Reality with Both Hands: Brad DeLong's Semi-Daily Journal

What happened in August and Sept

This is one Fed governor's view of what happened in August and why the Fed cut by 50 bps.
Higher than anticipated draws on bank credit lines made banks less likely to led to new borrowers.

Kohn is still worried about inflation.


FRB: Speech--Kohn, Economic Outlook--October 5, 2007

A better way to organise securities markets

This will not happen because in normal markets it is in Wall Street's favor when there is less transparency. And normal times are more common than times of crisis.

FT.com / Comment & analysis / Comment - A better way to organise securities markets

Paul Volker at the Japan Society

Paul Volker and Alan Blinder spoke yesterday at the Japan Society.

Role of the Fed.
The Fed must protect the economy. Even if the market brought a problem upon itself the Fed must protect the market to save the economy.

There is not always a clear policy. There is only one clear instrument - interest rates.

New markets and regulation

The myth: Derivatives and securitization diversifies risk so that individual firms will not be harmed.

Proved untrue: see Merrill Lynch 5.4 billion writedown, DB 4 billion writedown etc.

Tradeoff between supervision & regulation. and protection.

Banks want want protection but not regulation.

Securitization's problem is that if banks immediately resell loans they will not care about credit.

At the second or third derivative nobody knows who the originator is.

No regulator was aware how big the problem was.

Did not know how big subprime mortgage business was 1.25 trillion.

Thought it was 100 200 billion.

Lessons

Big institutions provide stabillity

Small institutions at risk

What happens if problem comes when economy is not strong.

Need more regulation bt not clear what.

On Japan

Growth is not as bad as top line numbers might suggest.

Since population is not growing and is aging growth should not be as fast

But real damage occurred: Real estate, stock down 75 percent. US real estate at this point is only down a couple of percent.

Price Deflation did not harm spending.

Cpi at -1. 1 does not change how Ms Watanabe buys and sells.

Asset deflation harmed spending

Asset deflation is a big worry.

What to do about bubbles.

Inflation
Why is it not a worry

India
Disinflation from services still to come from India

Inertia
Inflation low everywhere

Inflation targeting

All central banks are targeting inflation.

Anyting that can be imported from china has not gone up in 10 years Other half of cpi is made up.

Milton Friedman on externalities

Angry Bear

Does tax exemption for large institutions make sense?

Harvard endowment earned 7 billion tax free last year.

Gifts that keep on giving | Free exchange | Economist.com

Gotta love corporate America

Skype owners, like CEO's, still get paid..

Finance Blog - Market Movers by Felix Salmon: Cognitive Dissonance at Skype - Portfolio.com

More on the Core CPI

Grasping Reality with Both Hands: Brad DeLong's Semi-Daily Journal

blog.pmarca.com: The Pmarca Guide to Career Planning, part 2: Skills and education

blog.pmarca.com: The Pmarca Guide to Career Planning, part 2: Skills and education

Careers

blog.pmarca.com: The Pmarca Guide to Career Planning, part 1: Opportunity

Google Reader (1000+)

Google Reader (1000+)

Shocking Data on prisons

More young blacks in prison than in college etc.

Life sentence - The Boston Globe

Why the Fed uses the concept of Core Inflation

It does not want "to hit the economy over the head with a brick."


Grasping Reality with Both Hands: Brad DeLong's Semi-Daily Journal