TokyoTalisman

Let Us Now Praise Private Equity - National Review Online

And from the comments:
"I thought private equity was about taking fairly sound companies, buying them up by issuing huge debts in their names, gutting all the maintanence and staff, sucking out all the cash into your private equity fund, flipping them public and getting slick salesmen to pump it to $30/share only to have it crash to a $1/share a year after you unloaded your holdings when people realized how much long term damage was done to the company.

Or maybe that’s just my personal experience."

Are there any good arguments against the EMH?

2012-01-31T08:56:00.001-05:00

TheMoneyIllusion � Are there any good arguments against the EMH?

A Better Proletariat (and More Brandy Please**) for Charles Murray

2012-01-30T10:31:00.001-05:00

Cogitamus: A Better Proletariat (and More Brandy Please**) for Charles Murray:

The area where one�sees�this disingenuousness in perpetually full flower is the treatment of the white working class by the intellectual right.� Time and again, one reads about the identification�of the Republican Party with working class whites -- a vital element of the base after all -- and yet one struggles in vain to think of a single policy advocated by the right which would have the practical effect of improving working class life.

CONVERSABLE ECONOMIST: Robert Kennedy on Shortcomings of GDP in 1968

2012-01-30T07:23:00.000-05:00

CONVERSABLE ECONOMIST: Robert Kennedy on Shortcomings of GDP in 1968

A defense of Private Equity

2012-01-30T07:14:00.000-05:00

So it is not all financial engineering?

The Epicurean Dealmaker: The Rape of Persephone

How do states act after they get nuclear weapons? — The Monkey Cage

2012-01-29T08:12:00.001-05:00

Nukes make states less prone to violence. The US, not on the graph, is the obvious outlier.

How do states act after they get nuclear weapons? — The Monkey Cage

Made Better in Japan

2012-01-29T07:07:00.001-05:00

The culture that is Japan.

Made Better in Japan - WSJ.com

Flush With Oil From Alberta, Canada Prepares For Inevitable U.S. Invasion

2012-01-28T08:38:00.000-05:00

Flush With Oil From Alberta, Canada Prepares For Inevitable U.S. Invasion

N.Y. Airports Account for Half of All Delays - NYTimes.com

2012-01-28T07:53:00.001-05:00

Why it makes sense to invest in high speed rail links on the Northeast corridor: one third of all flight delays nationwide are attributable to delays in NYC airports.

N.Y. Airports Account for Half of All Delays - NYTimes.com

The Shift from Manufacturing to Service Economy | The Big Picture

2012-01-26T15:16:00.000-05:00

The Shift from Manufacturing to Service Economy | The Big Picture

Apple’s iPad and the Human Costs for Workers in China - NYTimes.com

2012-01-26T11:52:00.000-05:00

Apple’s iPad and the Human Costs for Workers in China - NYTimes.com

Redefining Action Hero: Bill Gates is Better Than Batman (Infographic) | Frugal Dad

2012-01-25T13:32:00.001-05:00

Redefining Action Hero: Bill Gates is Better Than Batman (Infographic) | Frugal Dad

research puzzle pix by tom brakke

2012-01-25T13:16:00.000-05:00

Why I sold my farm.

research puzzle pix by tom brakke

Udacity and the future of online universities | Felix Salmon

2012-01-25T10:25:00.002-05:00

I dropped out ;-(
But 170 of the 200 Stanford students also dropped.

Udacity and the future of online universities | Felix Salmon

The real story is growing equality

2012-01-25T10:22:00.001-05:00

The growth of Chinese economy brought 100's of millions out of rural poverty. The American middle class suffered relatively as a byproduct of that growth, but the net gain to humanity is very positive.

On the other hand, this still does not address the issue of why the top 1% captures more than its share of growth, both pre and after tax.

TheMoneyIllusion � The real story is growing equality

No one knows nothing

2012-01-25T08:11:00.001-05:00

EconomPic: Apples Numbers Were B-A-N-A-N-A-S:

Apple’s results highlight this simple fact: no one knows nothing.

The world’s hunger for public goods - FT.com

2012-01-25T07:12:00.001-05:00

The key debate in the US now is what are the appropriate public goods. The one point of agreement is defense.

The world’s hunger for public goods - FT.com

Amid Attacks on Private Equity, Efforts to Study Its Value - NYTimes.com

2012-01-25T06:39:00.000-05:00

Studies of Private Equity value creation have ambiguous results.

Studies of Private equity fund managers show huge value creation (for the managers).

Amid Attacks on Private Equity, Efforts to Study Its Value - NYTimes.com

Josh’s Twenty Common Sense Investing Rules | The Reformed Broker

2012-01-24T15:09:00.001-05:00

Josh’s Twenty Common Sense Investing Rules | The Reformed Broker

New Reality Show: Real Economists of the Ivory Tower | The Big Picture

2012-01-24T09:05:00.001-05:00

Summary of the recent row among economists.

New Reality Show: Real Economists of the Ivory Tower | The Big Picture

Robert Reich (The State of Our Disunion: A Globalizing Private Sector, A Government Overwhelmed by Corporate Money)

2012-01-24T07:48:00.002-05:00

The private sector cannot lead the way to more and better jobs in the United States. The private sector is only interested in growth and profitability of the individual firm.

"The strategic responsibility for making Americans more globally competitive can’t be centered in the private sector because the private sector is rapidly going global, and it’s designed to make profits rather than good jobs. The core responsibility has to be in government because government is supposed to be looking out for the public, and investing in public schools, colleges, infrastructure, and basic R&D. "

Robert Reich (The State of Our Disunion: A Globalizing Private Sector, A Government Overwhelmed by Corporate Money)

Mass Incarceration and Criminal Justice in America : The New Yorker

2012-01-24T07:29:00.001-05:00

Mass Incarceration and Criminal Justice in America : The New Yorker

Barack Obama, Post-Partisan, Meets Washington Gridlock : The New Yorker

2012-01-23T14:08:00.002-05:00

Barack Obama, Post-Partisan, Meets Washington Gridlock : The New Yorker

How Coffee Changed America

2012-01-23T05:48:00.001-05:00

How Coffee Changed America | The Big Picture

Opaque and stinky logorrhea

2012-01-22T09:03:00.000-05:00

interfluidity � Opaque and stinky logorrhea

InfographicsExamplesofTeachingbyShowingTipsforStudent_4dcaf7741a08d.jpg (1208�2579)

2012-01-21T17:02:00.001-05:00

InfographicsExamplesofTeachingbyShowingTipsforStudent_4dcaf7741a08d.jpg (1208�2579)

It Was Completely Legal

2012-01-21T12:18:00.000-05:00

It Was Completely Legal | Angry Bear - Financial and Economic Commentary

TheMoneyIllusion � Go bother Karl Smith for a while

2012-01-19T11:42:00.000-05:00

TheMoneyIllusion � Go bother Karl Smith for a while

Capital Gains and Tax Rates

2012-01-19T07:52:00.001-05:00

There does not seem to be much of a relationship between levels of tax on capital gains and investment.

Capital Gains: Let’s Rumble | Jared Bernstein | On the Economy

How to succeed in Government.

2012-01-18T21:25:00.001-05:00

Suck up to your boss.

The Correlation of Laughter at FOMC�Meetings - Markets - The Daily Stag Hunt

How Productive Is The American Worker? - The Dish | By Andrew Sullivan - The Daily Beast

2012-01-17T07:07:00.000-05:00

How Productive Is The American Worker? - The Dish | By Andrew Sullivan - The Daily Beast

Warm and Fuzzy on Geothermal?

2012-01-17T06:21:00.001-05:00

The Oil Drum | Warm and Fuzzy on Geothermal?

How Much of US Consumables Are Made in China? | The Big Picture

2012-01-16T08:36:00.001-05:00

How Much of US Consumables Are Made in China? | The Big Picture

: Libertarian Illusions

2012-01-16T05:58:00.001-05:00

Jeffrey Sachs: Libertarian Illusions:

Yet the error of libertarianism lies not in championing liberty, but in championing liberty to the exclusion of all other values. Libertarians hold that individual liberty should never be sacrificed in the pursuit of other values or causes. Compassion, justice, civic responsibility, honesty, decency, humility, respect, and even survival of the poor, weak, and vulnerable -- all are to take a back seat.

The Future Of The Euro | The Big Picture

2012-01-15T18:31:00.001-05:00

The Future Of The Euro | The Big Picture

The last Kodak moment?

2012-01-15T07:56:00.001-05:00

For all the talk of failure, Kodak still has 6 billion dollars in revenue, which puts it at the 327th ranked US company in sales.

Technological change: The last Kodak moment? | The Economist

Dear Student: I Don't Lie Awake At Night Thinking of Ways to Ruin Your Life - Forbes

2012-01-14T06:17:00.001-05:00

Dear Student: I Don't Lie Awake At Night Thinking of Ways to Ruin Your Life - Forbes

Allen West on the Marines Incident: 'Shut Your Mouth, War Is Hell' | The Weekly Standard

2012-01-14T05:36:00.002-05:00

The atrocities in Afghanistan are a feature, not a bug, of our military. If you send people to kill, they will terminate with extreme prejudice. We try to sanitize war only to justify it.

Allen West on the Marines Incident: 'Shut Your Mouth, War Is Hell' | The Weekly Standard

This is why counterinsurgency is a bad bet.

Romney’s Victim?

2012-01-14T05:02:00.000-05:00

Cast as Romney’s Victim, Gaffney, S.C., Says, ‘Huh?’ - NYTimes.com:

The problem with Romney, in the eyes of middle America.

“It’s the Mormon thing, that and the Northern thing along with the wealth issue,”

Private Equity is Financial Engineering

2012-01-13T05:53:00.001-05:00

The re-branding of the industry from LBO to private equity was quite stunning. There are some success stories but it even those involve tax arbitrage.

An Interview with Josh Kosman on the Embeddedness of Private Equity in the Tax Code | Rortybomb

Inside the Fed in 2006 - A Coming Crisis, and Banter - NYTimes.com

2012-01-13T05:16:00.001-05:00

Inside the Fed in 2006 - A Coming Crisis, and Banter - NYTimes.com:

This makes me feel a little better for getting it wrong. A lot of smarter guys were wrong.

" The transcripts of the 2006 meetings, released after a standard five-year delay, clearly show some of the nation’s pre-eminent economic minds did not fully understand the basic mechanics of the economy that they were charged with shepherding. The problem was not a lack of information; it was a lack of comprehension, born in part of their deep confidence in economic forecasting models that turned out to be broken.

Brad DeLong: Understanding the Literature of Economics: Plumbing the Depths of Ignorance Blogging

2012-01-12T08:48:00.000-05:00

The state of economics profession.

Brad DeLong: Understanding the Literature of Economics: Plumbing the Depths of Ignorance Blogging

The behavioural economist's dilemma: induction versus deduction

2012-01-12T08:27:00.001-05:00

Worthwhile Canadian Initiative: The behavioural economist's dilemma: induction versus deduction:

Economics, he said, is basically a deductive discipline.�Psychology, on the other hand, is inductive.�

It's a caricature, a gross over-simplification. But it has an element of truth.

Economists like to begin with a general model, work out its implications, and then go to the data to test the theory. Yes, there are applied economists who spend their lives trying to find out facts about the world. But facts in and of themselves are uninteresting unless they illuminate economists' view of the world, and can be explained in economic language.

Psychologists begin by observing people's behaviour, looking for generalizable patterns. For example, if people are observed acting as if they are averse to losses, psychologists infer that loss aversion exists. Yes, psychologists have conceptual explanatory frameworks, such as prospect theory, to explain such phenomena,but these theories are not the elegant mathematical creations favoured by economists. And where is the status and prestige? �Look at the psychology journal rankings. There isn't a top-ranked�journal with "theory" in the title.

Why Is Inequality Higher in America?

2012-01-12T08:19:00.001-05:00

Why Is Inequality Higher in America? — The Monkey Cage:

There are more avenues to corrupt the system, therefore the system is more corrupt.

When we examine our set of 23 long-standing democracies in advanced economies, we ﬁnd that slightly more than half of these countries (12.5) actually have only one electorally generated veto player … There are 7.5 countries with two veto players, two countries (Switzerland and Australia) with three veto players, and only one country, the United States of America, with four electorally generated veto players

Nature Conservancy hijinks, yet again

2012-01-12T08:16:00.000-05:00

It is not about tax rates. It is about how smart lawyers manipulate the tax code.

ataxingmatter: Nature Conservancy hijinks, yet again

The Missing 'Humanity Clause' at Bain

2012-01-12T06:04:00.000-05:00

Financial engineering. Not business.

RealClearPolitics - The Missing 'Humanity Clause' at Bain

Are Private Equity Firms Evil Doers?

2012-01-11T09:16:00.001-05:00

Not clear they are evil. But they are financial engineers, not business experts.

Are Private Equity Firms Evil Doers? Washington Post Edition | Beat the Press

Insider-Trading Mole Praised by Prosecutors - WSJ.com

2012-01-11T09:13:00.001-05:00

Insider-Trading Mole Praised by Prosecutors - WSJ.com

Lost in Tokyo on Vimeo

2012-01-11T08:00:00.001-05:00

Lost in Tokyo on Vimeo

Let’s talk about the market economy - FT.com

2012-01-11T07:07:00.001-05:00

Let’s talk about the market economy - FT.com:

Modern "capitalists"

So the business leaders of today are not capitalists in the sense in which Arkwright and Rockefeller were capitalists. Modern titans derive their authority and influence from their position in a hierarchy, not their ownership of capital. They have obtained these positions through their skills in organisational politics, in the traditional ways bishops and generals acquired positions in an ecclesiastical or military hierarchy.

The Spoils of War

2012-01-11T06:47:00.001-05:00

The Spoils of War: Huntsman, Paul and Santorum each represents a distinct wing of the party, and their most cherished causes conflict with one another. (Gingrich represents less a wing than a foul mood.)

Give Guant�namo Back to Cuba

2012-01-11T06:34:00.000-05:00

Give Guant�namo Back to Cuba - NYTimes.com

A few suggestions on peer review–ctd. | The Incidental Economist

2012-01-10T08:31:00.001-05:00

A few suggestions on peer review–ctd. | The Incidental Economist

The Career Of The Future Doesn't Include A 20-Year Plan. It's More Like Four. | Fast Company

2012-01-10T07:15:00.001-05:00

The Career Of The Future Doesn't Include A 20-Year Plan. It's More Like Four. | Fast Company

Eureka! Economic Illiteracy as Mental Substitution, Bryan Caplan | EconLog | Library of Economics and Liberty

2012-01-10T06:28:00.001-05:00

Eureka! Economic Illiteracy as Mental Substitution, Bryan Caplan | EconLog | Library of Economics and Liberty

Buying the Body of Christ

2012-01-10T06:14:00.001-05:00

Buying the Body of Christ < Killing the Buddha

Slow Growth In Health Spending

2012-01-10T05:55:00.002-05:00

Trends continue until they can't. Why the worry about us spending all of our gdp on healthcare is unfounded.

Slow Growth In Health Spending And Utilization Continues – Health Affairs Blog

The Venn of Paul

2012-01-09T07:34:00.001-05:00

Why Paul is so perplexing.

The Venn of Paul | The Big Picture

Blue on Blue

2012-01-09T07:26:00.002-05:00

Republican Super Pacs attack Mitt Romney.

All Of Area Man's Hard Work Finally Pays Off For Employer | The Onion - America's Finest News Source

2012-01-09T06:43:00.001-05:00

All Of Area Man's Hard Work Finally Pays Off For Employer | The Onion - America's Finest News Source

2012-01-09T06:43:00.000-05:00

All Of Area Man's Hard Work Finally Pays Off For Employer | The Onion - America's Finest News Source

Goal of the Fed

2012-01-09T06:20:00.001-05:00

Indeed, the monetary authorities seem to be following the 2008 playbook: bail out the banks, but by no means stimulate nominal GDP.

Mark's Monetary Matters, Arnold Kling | EconLog | Library of Economics and Liberty:

Current woes call for smart reinvention not destruction - FT.com

2012-01-09T06:14:00.001-05:00

Current woes call for smart reinvention not destruction - FT.com

America’s Unlevel Field

2012-01-09T06:04:00.001-05:00

At the most selective, “Tier 1” schools, 74 percent of the entering class comes from the quarter of households that have the highest “socioeconomic status”; only 3 percent comes from the bottom quarter.

America’s Unlevel Field - NYTimes.com:

Save the City?

2012-01-08T06:59:00.001-05:00

Good tirade against the financial sector.

Ian Fraser: The Economist Loses the Plot With This Shallow, Pro-City Propaganda � naked capitalism

States Pay to Train Workers, to Companies’ Benefit - NYTimes.com

2012-01-08T05:46:00.001-05:00

Companies get tax breaks and now training programs for their new employees.

States Pay to Train Workers, to Companies’ Benefit - NYTimes.com

Christmas songs

2012-01-07T10:56:00.000-05:00

tradition.png (740�518)

A Hidden Cost of Military Cuts Could Be Invention and Its Industries - NYTimes.com

2012-01-07T06:16:00.000-05:00

So government spending is stimulus only if it is defense spending?

A Hidden Cost of Military Cuts Could Be Invention and Its Industries - NYTimes.com

The case of the missing gas mileage - MIT News Office

2012-01-07T06:10:00.001-05:00

The case of the missing gas mileage - MIT News Office

How Austerity Is Killing Europe

2012-01-07T05:57:00.001-05:00

How Austerity Is Killing Europe by Jeff Madrick | NYRblog | The New York Review of Books:

Germany has the financial wherewithal to lead this rescue. But it is blocking the fiscal union from acting like a single nation with compassion for all Eurozone citizens. It is also refusing to underwrite a substantial new fiscal stimulus—good-old fashioned Keynesianism. Is this a new national arrogance? I hope not. So far, Germany is benefitting from the crisis as investors buy German bonds as safe havens from the turmoil. In fact, the failure to act will soon affect the German economy. It will take financial losses on its banks’ loans to the peripheral nations and its export markets will weaken. The bond buyers who are now gobbling up German debt, thus keeping rates low while they rise in Italy, Greece, Portugal, and Spain, will likely stop doing so.

The EU leaders must get over their obsession with eliminating deficits. They now want to reduce every country’s deficit to less than 0.5 percent. This is disaster. It will lead to very slow growth for a long time. Instead, they must use temporary deficits to restart growth. Rarely has policymaking been this poor. Sooner than later, the citizens of these nations will say, No more!, and political instability will result.

The Myth of Japan’s Failure

2012-01-07T05:50:00.003-05:00

If an alien visited NY, London, Shanghai and Tokyo, they might pick Japan as the most successful economy of the last decade.

The Myth of Japan’s Failure - NYTimes.com

And a couple of counter arguments.
http://togetrichisglorious.blogspot.com/2012/01/truth-about-japan.html

From Krugman and Yglesias

S.E.C. Changes Its Policy on Firms’ Admissions of Guilt - NYTimes.com

2012-01-06T20:41:00.000-05:00

S.E.C. Changes Its Policy on Firms’ Admissions of Guilt - NYTimes.com

From The Annals Of Chutzpah

2012-01-06T19:28:00.000-05:00

From The Annals Of Chutzpah - The Dish | By Andrew Sullivan - The Daily Beast

Seeing the United States | The Incidental Economist

2012-01-06T09:59:00.000-05:00

Seeing the United States | The Incidental Economist

Devaluations do not always work

2012-01-06T09:43:00.001-05:00

And for every Iceland, where devaluation helped, there is a Hungary, where it does not seem to be producing riches.

The Grumpy Economist: Should Greece Devalue?:

Corporate Profits Have Rebounded To Pre-Recession Levels, But Corporate Tax Revenue Hasn't

2012-01-06T06:20:00.001-05:00

The distribution issue is not a post tax issue. It is pre tax.

Corporate Profits Have Rebounded To Pre-Recession Levels, But Corporate Tax Revenue Hasn't | ThinkProgress

Is Joblessness a Skills Problem or an FOMC Problem?

2012-01-06T06:06:00.001-05:00

Answer: FOMC

Is Joblessness a Skills Problem or an FOMC Problem? � Uneasy Money

How Yoga Can Wreck Your Body

2012-01-06T04:57:00.001-05:00

All things in moderation.

How Yoga Can Wreck Your Body - NYTimes.com

Romney's Tax Plan--good for the wealthy, not so good for everybody else

2012-01-05T17:08:00.001-05:00

ataxingmatter: Romney's Tax Plan--good for the wealthy, not so good for everybody else

David Ignatius Hides Upward Redistribution Policies as Market Outcomes | Beat the Press

2012-01-05T15:09:00.000-05:00

The market is not god. There are very specific policies which have led to upward distribution of wealth.

David Ignatius Hides Upward Redistribution Policies as Market Outcomes | Beat the Press

The Mendacity of Dopes

2012-01-05T12:33:00.000-05:00

This is not a game.

The Mendacity of Dopes - NYTimes.com

Some Questions About Government, Arnold Kling | EconLog | Library of Economics and Liberty

2012-01-04T09:04:00.000-05:00

Some Questions About Government, Arnold Kling | EconLog | Library of Economics and Liberty

Seven years after sieges, Fallujah struggles

2012-01-04T08:40:00.001-05:00

Lots of articles in US press on ptsd. Not much on this:

Seven years after sieges, Fallujah struggles - Features - Al Jazeera English

Earth: Peak to Depth

2012-01-04T07:09:00.001-05:00

Earth: Peak to Depth | The Big Picture

Every Vote Matters

2012-01-04T06:44:00.000-05:00

At least in a Republican caucus in Iowa.

Romney Wins Iowa Caucus by 8 Votes - NYTimes.com

What Finland Shows China, U.S

2012-01-03T06:06:00.002-05:00

What Finland Shows China, U.S. | China Power:

Many Ivy Leaguers became so because they’re motivated by short-term rewards, and so they naturally believe that everyone is motivated to perform their best if offered short-term rewards.�

The Finish experience.

Kahneman, Greed and Success,

2012-01-03T05:58:00.000-05:00

It isn't hard to make a lot of money, if all you do is want to make a lot of money.

Kahneman, Greed and Success, Bryan Caplan | EconLog | Library of Economics and Liberty:

Kahneman highlights an important, neglected reason why some people are rich and others are poor: some people care about money more than the rest of us.� People who want to be rich make the choices and sacrifices conducive to that end - and on average they succeed.�

Los Angeles Police Arrest Suspect

2012-01-02T18:07:00.000-05:00

Los Angeles Police Arrest Suspect in Car Arsons - NYTimes.com:

NYC's schadenfreude

For all its considerable delights, Southern California always seems faintly on the cusp of an apocalypse. There are palm trees, year-round gardens and splendid weather — it was 81 degrees and sunny on Sunday — but there are also mudslides, gang shootings, wildfires and earthquakes.

The Distorted View from Capitol Hill

2012-01-02T06:32:00.000-05:00

Reality distortion in D.C.

The Distorted View from Capitol Hill - NYTimes.com

Contractors' role grows in drone missions, worrying some in the military

2012-01-01T07:09:00.000-05:00

We outside the military should be worried as well.

Contractors' role grows in drone missions, worrying some in the military | McClatchy

Way to start off the year.

2012-01-01T06:20:00.000-05:00

Mark Ames: Ezra Klein’s shine job on the Kochs � naked capitalism:

What do you really think about Ezra Klein?

Really, the problem isn’t so much Ezra–after all, he’s a former roommate of Megan [McArdle]’s and a longtime friend of hers, Weigel’s, and every other corrupt libertard scavenger in DC–the problem is that the Washington Post must have known what they were doing when they zeroed in on this gullible, star-fucking pipsqueak to represent the so-called liberal consensus. The Fred Hiatts and Charles Lanes chose Ezra Klein for the same reason Roger Ailes chose Alan Colmes to sit next to Hannity.

Old Goalie Steals Show

2012-01-01T06:09:00.000-05:00

Playing Five Minutes, Old Goalie Steals Show - NYTimes.com: “You’re never too old to go after your passion,” said Parent, who lives on a houseboat in Wildwood, N.J. “There’s a message there for a lot of people. You have to prepare for it. Will you perform the same as you did 30 years ago? Of course not, but you don’t quit. It brings a quality of life. So my message here to the people tonight is: Don’t give up. I’m 66 years old, I get on the ice five minutes, but I did it.”

Questions for Business Success

2012-01-01T06:00:00.000-05:00

How Samuel Palmisano of I.B.M. Stayed a Step Ahead - Unboxed - NYTimes.com:

• “Why would someone spend their money with you — so what is unique about you?”

• “Why would somebody work for you?”

• “Why would society allow you to operate in their defined geography — their country?”

• “And why would somebody invest their money with you?”

Restore Our Future Attack Ads

2011-12-31T06:01:00.000-05:00

Superpacs are a threat to democracy. They give extra weight to those with money.

Restore Our Future Attack Ads Harm Gingrich in Iowa - NYTimes.com