Here’s a tragic story about a hedge fund manager who lost $100MM in client assets: “Li said in the letter that he made a series of “aggressive transactions” over the last three weeks to make up for poor returns in December. He said he bet on stock price options, predicated on the broader market rising.… Read More
‘Most Recent Stories’
Wealth and income inequality has become the big issue of the day. And with Thomas Piketty’s new book it’s become THE hottest topic in economics. But I fear that much of this discussion looks like one gigantic fallacy of composition. Last year when I wrote my review of Piketty’s book I criticized him for not… Read More
Every week it seems like there’s a new story that captures everyone’s attention in the world of finance (the same thing happens with the regular news). People focus all of their attention on that one story or market and then quickly forget about it the next week when something new catches their eye.
Nick Rowe writes a post glorifying Milton Friedman declaring that “we are all Friedman’s grandchildren” and that New Keynesian economics owes more to Friedman than to Keynes. He also takes some shots at John Kenneth Galbraith saying that he “lost” to Friedman. Nick is right. Friedman has influenced economics tremendously over the last 40 years… Read More
Some people seem to think my comments on the SNB are controversial. They say that the SNB can’t go bankrupt and that the SNB’s shareholder’s carry no direct influence over their actions. Of course this is true. I’ve stated all of this on several occasions in various places. But Central Banks do not operate with… Read More