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Entries Tagged as 'Finance'

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When The Efficient-Markets Hypothesis Gets Taken Too Far, With Bonus Zoo Footage…

June 8th, 2014 · 7 Comments

It’s no secret that many economists believe in the efficiency of markets- in fact, there’s a fairly well-known joke that goes something like the following: Normal person: Hey look, somebody dropped $20 on the sidewalk. Economist: Nonsense- that can’t be a real $20 bill, since, if it was, somebody would have picked it up already. [...]

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Tags: Finance

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The New (And Improved) Alan Greenspan Does The Daily Show…

October 24th, 2013 · 3 Comments
Behavioral Econ · Books · Finance · Markets · Policy

Oh man, this is great…it’s like watching everybody’s grandfather talk about bank regulation, AND Greenspan is basically saying that behavioral economists had it right all along: (Sidenote: the closed captions are really helpful if you are somewhere where audio is frowned upon.) Oh good, we’ve gotten to a point in the world where the guy [...]

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Tags: Behavioral Econ · Books · Finance · Markets · Policy

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On The Efficient Markets Hypothesis, Or, How Cats Are The New Monkeys With Dart Boards…

January 19th, 2013 · 6 Comments
Buyer Beware · Finance · Markets

One of the most fundamental concepts in finance is the efficient markets hypothesis. In case you are unfamiliar with the concept, here’s a bit of background: The efficient markets hypothesis has historically been one of the main cornerstones of academic finance research. Proposed by the University of Chicago’s Eugene Fama in the 1960′s, the general [...]

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Tags: Buyer Beware · Finance · Markets

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Picture Of The Day: On The Perils Of Automated Trading Algorithms…

November 21st, 2012 · 3 Comments
Finance · Just For Fun

Apparently this is what could happen when computers take over the world: That screen shot is from a segment on the Colbert Report on high-frequency trading. I think I was mostly struck by how similar the operations of high-frequency traders are to those of ticket scalpers. You can see the segment here: The Colbert Report [...]

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Tags: Finance · Just For Fun

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FAQ: What Is The LIBOR And Why Should I Care? Now With More Pictures…

July 24th, 2012 · 6 Comments
Buyer Beware · Finance

Q: What in the world is LIBOR? Is it like a liger? Because that would be awesome. A: LIBOR stands for “London Interbank Offered Rate,” and it gives the interest rate that major banks in London would pay to borrow money from one another. Technically, the LIBOR is a collection of a bunch of different [...]

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Tags: Buyer Beware · Finance

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Random Link: All Publicity Is Good Publicity(?), IMF Edition…

May 18th, 2011 · 7 Comments
Finance · Macroeconomics · Policy

Sooooo…all it takes is the head of the IMF getting arrested for sexual assault for people to get curious as to what the IMF actually is? Fortunately, NPR’s Planet Money gives a nice overview of the International Monetary Fund: You can think of it sort of like a credit union for countries, says Eswar Prasad, [...]

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Tags: Finance · Macroeconomics · Policy