Low Volatility Conference
Last Friday I spoke at a Robeco seminar on ‘low volatility’ (note the calm low-vol investor within a panicking buffalo herd). Why did I sp...
Crony Capitalism in America
Big companies have always tried to curry favor with government, because their activities perforce are highly influenced by government behavi...
Where the Risk Premium Thinking Leads You
As they say, somethings are so silly on the highly educated can believe them. John Campbell, an archetype of conventional financial academi...
Krugman Demotivator
From Krugman's NYTimes post in 2002, available here . When the results of this advice became apparent in 2008, he was awarded the Nobel...
Buffett's Hire Doesn't Scale
Buffett's replacement Todd Combs seems like an earnest, smart stock picker. But a $100B fund doesn't need a stock picker, they need...
Fund Manager Commits Suicide, SEC Investigates
A local story about fund manager Robert Markman , who ran a classic Ponzi scheme. It reminds one of Henry Blodget: The college theater ma...
Sometimes It Just Takes One Mistake
Sports are so compelling because they embody the essence of life: meaningless at some level, but the competition, excellence, and courage ar...
Robo-Signer Pretexts
At the center of your being you have the answer; you know who you are and you know what you want ~Lao Tzu People have objectives, and are ve...
Renewable Resources Run Out
Matt Ridley, who wrote The Rational Optimist, was interviewed by Russ Roberts . This was an interesting insight: There is not a single exam...
Disingenuous Hair Splitting
When I was learning economics, monetarism was on the wane. The 1981 recession brought forth a big change in velocity that did not conform t...
Ed Miller's Curse
In 1977, Edward Miller presented a model where investors with different opinions were buying assets. He noted that in such a case, an asse...
Misery Loves Company
Recently, entrepreneurial lawyers have taken up the cause of renters who stopped paying their mortgages, as if they are somehow the victim i...
No Nobel for Art Laffer, Ever
A good way to think about the state of economics, is to note the disparity between the treatment of the Laffer curve and Nobel prize winnin...
The Genius in All of Us
Strangely, most people can read this: Can you raed this? Olny 55 plepoe out of 100 can.I cdnuolt blveiee that I cluod aulaclty uesdnatnrd wh...
Econ Nobel Not Worthy
Science is about recipes, all the rest is literature. E=MC^2, F=G*m1*m2/r^2, PV=nrt, etc. That's science, and good new models are bric...
Heart without a Brain
Here's Michael Moore promoting his movie about the 2008 financial crisis, in Capitalism: A Love Story, at an interview with Canada'...
Government Stimulus in Action
This harebrained plan solves nothing: Unemployed homeowners in Massachusetts will be able to take out interest-free loans of up to $50,000 ...
Why Volatility Innovation Can't Save the Risk Premium
I noted that a paper referenced the fact that an asset's correlation with volatility changes is a priced risk factor. Thus, instead of...
John Kenneth Galbraith
Nice evisceration of John Kenneth Galbraith in the WSJ . He was wrong on all his major arguments, namely that the market was always overval...
Never Trust Experts
Science at some level contains essentials truths that are interesting and useful, a dominant alternative to ignorance and superstition. At ...
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