Monthly Archives: January 2010

Fear the Boom and Bust — an Economics Lesson

Ordinarily, I don’t think much of video on the web.  Writing is usually a more concise way to get a view across.  But video can be more effective if it gets past the genre of “talking heads,” in which case, one is usually better off reading a transcript.  Consider the State of the Union message […]

Redacted January 2010 FOMC Statement

December 2009 January 2010 Comments Information received since the Federal Open Market Committee met in November suggests that economic activity has continued to pick up and that the deterioration in the labor market is abating. Information received since the Federal Open Market Committee met in December suggests that economic activity has continued to strengthen and […]

Too Much Leverage Precedes Many Disasters

There seems to be some confusion over what threatened to cause major banks to fail.  Let me go over my list of the risks: Many relied on AIG to insure their subprime and other structured lending risks.  Note: initially, when an insurer underprices a product dramatically and attracts a lot of business, the sellers of […]

Why Bernanke Doesn’t Matter, So Vote Him Down If You Want

I am no fan of Ben Bernanke, longtime readers know.  There are many reasons to find fault with him: His actions on the Fed while Greenspan was Chairman provided the intellectual support for over-providing liquidity to the market.  Dropping the Fed funds rate below 2% was indefensible.  All the economy needs is a small positive […]

Book Review: Reminiscences of a Stock Operator (Annotated Edition)

I read Reminiscences of a Stock Operator around ten years ago.  I was trying to understand trading dynamics in the market, and the book was mentioned frequently. It is a classic.  But can a classic be made better?  In this case yes.  Jon Markman, an able financial writer, has written notes around the narrative, with pictures […]