“The More I Find Out, The Less I Know”
Cornering the Market in Money
It’s risky, expensive, and illegal to try to corner the market in frozen orange juice. But what about the market for money?
So, How 'Bout That Economy?
This is the worst recession since the 1980’s, and it could be the worst since the Great Depression.
Blood in the Water on Wall Street
The old Wall Street saying is that the time to buy stocks is when there’s blood in the water. Too bad I’m already fully invested.
Taking the Plunge with Prosper.com
I’ve already learned a lot about how—and how not—to invest on Prosper.com.
Prosper.com
Peer-to-peer lending site Prosper.com is intriguing, but there are some gotchas. Be careful.
Market Meltdown: It’s All About Liquidity
The stock market is having a rough time. In the end, it all comes down to liquidity.
Mortgage Meltdown and the Grand Unified Theory of Risk in Financial Markets
Markets tend to take on more and more risk until something breaks.
Why Economists Make Lousy Businesspeople
Most entrepreneurs don’t really want to spend the effort raising money from investors. They do it because there’s no better alternative.
Dividend Weighted Index Funds
Could it really be true that a dividend-weighted index fund outperforms a market cap weighted fund? You might not care, but I do!
Inverted Yield Curve
“It’s different this time,” perhaps the most famous mistake in finance.
The New Program Trading
Is it possible to manipulate the programs manipulating the market?
DRM and Price Discrimination
Digital Rights Management is generally described as technology to prevent piracy. But in actual use it’s often used as a tool to enable price discrimination.
The Economics of Firewood
Here in suburbia, firewood is mostly a waste product that’s expensive and labor-intensive to move. That makes it one of those rare places where an ordinary person can effectively trade some time for significant cost savings.
Housing and Financial Risk
How can you hedge the financial risk of owning a home when housing prices keep going up?
For most people, that’s the wrong question.
Money Changes Everything (A Parable of Google)
Before Google, if you wanted to find something on the Internet you most likely looked on Yahoo. If not Yahoo, then you probably went to one of the AltaVista-like search engines, but by the time Google hit the scene all the search engines were so cluttered with advertising as to be nearly useless.
What made Yahoo useful was not that it was complete (it wasn't), but that for many topics searching the Yahoo directory was likely to give you highly relevant web pages. Part of this relevance was due to the fact that Yahoo was compiled by people, not machines, and people are very good at judging whether other people will find a web site relevant. Then, as now, advertiser-supported web sites could earn more money if they had more visitors, so a listing in Yahoo was valuable.
Unfortunately, using people to compile a web directory doesn't scale well. You can only add to the directory as fast as your staff can review and classify web sites, and obscure searches are likely to come up empty-handed.
Then Google came along and changed everything.