The subject of the The 2008 banks bailouts (TARP), which understandably angered both Republicans and Democrats, a pertinent case study in pragmatism, in which other otherwise inviolable free market was temporary suspended for the ‘greater good’ of the economy, but ultimately, in spite of great criticism, the bailouts proved to be a success, or at… Continue reading Part 1. Misconceptions About the 2008 Financial Crisis
Tag: finance
While Many Panicked, Japanese Day Trader Made $34 Million
While Many Panicked, Japanese Day Trader Made $34 Million But the left insists that the markets are rigged, a bubble, a scam….this is not supposed to be happening. Yet again, empirical reality keeps slapping the left across the face. The left says the market is a zero-sum game, yet people (such as the example above)… Continue reading While Many Panicked, Japanese Day Trader Made $34 Million
Inverse Relationship Between Stock Prices and Volatility
Right now, even I don’t fully understand how markets work. I’m getting better, but still not where I need to be. There are two accounts under my control: a simple one that allocates an equal amount of money into 30-yr treasuries and a retail ETF, which has done well with annual returns of about 50%;… Continue reading Inverse Relationship Between Stock Prices and Volatility
High-IQ Wins Again – Stocks Surge For 2nd Day
Stocks keep going up, the left’s shrill cries for crisis still being ignored. Zerohedge wrong again, another defeat snatched from the jaws of what seemed like a certain victory. So close and yet so far. The Nasdaq is up a mind-blowing 7% in the past 2 days alone – staggering. The S&P 500 up 6%.… Continue reading High-IQ Wins Again – Stocks Surge For 2nd Day
Buy The Dip
As everyone is freaking out about stocks falling, a buying opportunity has presented itself: The pattern now is reminiscent of the selling in late 2011 which, in retrospect, was a good buying opportunity as the market proceeded to rally another 70%. The big concern right now is over supposed economic weakness in China. But aside… Continue reading Buy The Dip
Wealth Creation Orgy
Silicon Valley is in a wealth creation orgy, as the web 2.0 and Silicon Valley boom keeps defying all predictions of its decline. These numbers are just staggering: Air BNB worth $20 billion Uber: $40+ Billion Pinterest: $5 billion Dropbox: $8 billion Snapchat: $10 billion Tesla: $40 billion Most of these were in their infancy… Continue reading Wealth Creation Orgy
Why Personal Finance Has Become So Important To Millennials
With on average of 2000 people online at any given moment (on par with the wildly popular /r/aww) why is Reddit’s /r/personalfinance so popular, as well as 4chan’s business & finance board, 4chan.org/biz/ ? But it seems like the topic of personal finance, as well as economics and finance, is poplar everywhere online where high-IQ… Continue reading Why Personal Finance Has Become So Important To Millennials
The Stability and Necessity of Large Systems
Someone writes: Almost everyone makes the same basic mistake when it comes to economics. It is assumed that the markets and an economy tend to be naturally balancing mechanisms. Wrong! Horribly wrong! This is the reality of economies: Economies are naturally in-stable. INSTABILITY is the natural state to which all economies will tend towards, if… Continue reading The Stability and Necessity of Large Systems
How High-IQ People Make Money In The Stock Market
Interesting article, obviously written by someone of above average IQ who has had success day-trading. The market is 99% efficient, but that 1% allows smart people to make money consistently even as the left insists the market is rigged, a zero-sum game, or a bubble. The ‘blank-slate’ left believes that people can only succeed with… Continue reading How High-IQ People Make Money In The Stock Market
The Daily View: Wealth Inequality and Bond Market Liquidity
Today’s idiot: ‘The problem isn’t that we’ve been slaves to free markets’: Joseph Stiglitz interview Unlike Thomas Piketty, whose recent bestseller Capital in the 21st Century argues that capitalism makes rising inequality inevitable, Stiglitz insists the system can be fixed. ‘Widening and deepening inequality isn’t driven by immutable economic laws,’ he says. ‘A well-functioning market… Continue reading The Daily View: Wealth Inequality and Bond Market Liquidity