If you’ve read Don’t Quit Your Day Job… for a while, you’ve likely noticed the tension between us three writers over whether or not markets are rational and whether or not market irrationality is worth attempting to exploit due to transaction costs and risks. See Part I – Robert Shiller See Part II – Warren […]
Hey DQYDJ readers, remember that whole real estate bubble popping thing which started a few years ago? Now, there is plenty of blame for that little incident to go around, but one of the largest issues with the bubble and the ensuing collapse was the use of improper valuation techniques in securities related to real […]
Unemployment benefits are back in the news: Senator Jim Bunning held up a $10 billion bill in the Senate because he felt it didn’t hold to the pay-as-you-go laws passed earlier this year (the law apparently doesn’t apply because of a technicality; the subjects of the bill were said to be ’emergency provisions’). Unluckily for the senator, the provisions of the bill happened to concern the extension of unemployment benefits and the implementation of the so-called ‘Doctor Fix’ (preventing the pay cuts to doctors from Medicare). Even stranger to many politicians was the defense from Minority Whip Jon Kyl from Arizona stating that “… if anything, continuing to pay people unemployment compensation is a disincentive for them to seek new work.” Unemployment benefits preventing the unemployed from seeking work? Blasphemy!
A popular topic in the blogosphere, given new life after comments by Nobel prize winning economist Paul Krugman, is the relative success of the United States vs. the states that make up the European Union. The European Union is a loose confederation of 27 countries in Europe, ranging from Spain to Estonia. Krugman goes so far to suggest that “[y]ou should always bear in mind that when the question is which to believe — official economic statistics or your own lying eyes — the eyes have it.”
A classic quote on government regulation by the Nobel prize winning economist Milton Friedman.