Just a fad with no explanatory powers?
Paul Kedrosky: The End of (Behavioral) Finance
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Thursday, January 29, 2009
Wednesday, January 28, 2009
Soros has a plan
Interesting comment on asymmetric relationship between shorting stocks and shorting bonds using cds.
FT.com / Comment / Analysis - The game changer
FT.com / Comment / Analysis - The game changer
Saturday, January 24, 2009
Friday, January 23, 2009
Inaugural Words - 1789 to the Present - Interactive Graphic - NYTimes.com
Graphic display of Inaugural speeches.
Inaugural Words - 1789 to the Present - Interactive Graphic - NYTimes.com
Inaugural Words - 1789 to the Present - Interactive Graphic - NYTimes.com
Thursday, January 22, 2009
What is the multiplier?
Robert Barro on the economic stimulus.
Paul Krugman responds.
And a non economist responds.
Forbes sums it up.
Paul Krugman responds.
And a non economist responds.
Forbes sums it up.
Tuesday, January 20, 2009
Monday, January 19, 2009
Saturday, January 17, 2009
Sunday, January 11, 2009
Friday, January 09, 2009
Lessons from the Crisis
Daniel Acemoglu of MIT gives us some lessons.
1) Volatility still exists
2) Capitalism needs institutions. (The end of Aryan Rand)
3) Firm's value of their reputation is not enough to maintain ethical standards.
Summaries here and here
1) Volatility still exists
2) Capitalism needs institutions. (The end of Aryan Rand)
3) Firm's value of their reputation is not enough to maintain ethical standards.
Summaries here and here
U6 hits 13.5 Percent
Total unemployed, plus all marginally attached
workers, plus total employed part time for
economic reasons, as a percent of the civilian
labor force plus all marginally attached workers.
Dec 2008 U6
Graph from Big Picture
Wednesday, January 07, 2009
Tuesday, January 06, 2009
Woefully Misleading Piece on Value at Risk in New York Times
VAR was misused by risk managers and CEO's to mistate risk.
naked capitalism: Woefully Misleading Piece on Value at Risk in New York Times
naked capitalism: Woefully Misleading Piece on Value at Risk in New York Times
The myth of the riskometer
Simpler is better.
Much of today’s financial regulation assumes that risk can be accurately measured – that financial engineers, like civil engineers, can design safe products with sophisticated maths informed by historical estimates. But, as the crisis has shown, the laws of finance react to financial engineers’ creations, rendering risk calculations invalid. Regulators should rely on simpler methods.
Financial regulation built on sand: The myth of the riskometer | vox - Research-based policy analysis and commentary from leading economists
Much of today’s financial regulation assumes that risk can be accurately measured – that financial engineers, like civil engineers, can design safe products with sophisticated maths informed by historical estimates. But, as the crisis has shown, the laws of finance react to financial engineers’ creations, rendering risk calculations invalid. Regulators should rely on simpler methods.
Financial regulation built on sand: The myth of the riskometer | vox - Research-based policy analysis and commentary from leading economists
Saturday, January 03, 2009
Yale's Swensen
Swensen on Bloomberg:
There isn’t an investment strategy that can produce the kind of long-term results we’ve generated at Yale that isn’t going to post the occasional negative return,” Swensen said in the Dec. 30 interview. “I don’t think people should disregard the book because of the market trauma of the last few months. We’re not even done with the current fiscal year. Judging a long-term investment strategy based on the results of a five- to six-month period is foolish beyond words.”
There isn’t an investment strategy that can produce the kind of long-term results we’ve generated at Yale that isn’t going to post the occasional negative return,” Swensen said in the Dec. 30 interview. “I don’t think people should disregard the book because of the market trauma of the last few months. We’re not even done with the current fiscal year. Judging a long-term investment strategy based on the results of a five- to six-month period is foolish beyond words.”