DvD Insights - Corporate Credit Default Swaps and Non-Dealer Trading Volume @ RiskCenter: A Financial Risk Management Media Company:
Hmmm! There's not too much real activity out there. As van Deventer warns, keep your hands firmly on your wallet.
Tuesday, May 18, 2010
billy blog » Blog Archive » Naked Keynesianism
billy blog » Blog Archive » Naked Keynesianism: "Naked Keynesianism"
There's the beginning of a good discussion in the commentary to this blog. How much of the institutions surrounding government spending are necessary to keep the political and economic machinery running smoothly? And, more to the point, how can we start to change the level of discourse so that we can move the debate on to better ground i.e. MMT.
There's the beginning of a good discussion in the commentary to this blog. How much of the institutions surrounding government spending are necessary to keep the political and economic machinery running smoothly? And, more to the point, how can we start to change the level of discourse so that we can move the debate on to better ground i.e. MMT.
Tuesday, May 11, 2010
Friday, May 7, 2010
SSRN-The Shanxi Banks by Randall Morck, Fan Yang
Here's a little piece of insight into Chinese history.
SSRN-The Shanxi Banks by Randall Morck, Fan Yang: "The remote inland province of Shanxi was late Qing dynasty China’s paramount banking center. Its remoteness and China’s almost complete isolation from foreign influence at the time lead historians to posit a Chinese invention of modern banking. However, Shanxi merchants ran a tea trade north into Siberia, travelled to Moscow and St. Petersburg, and may well have observed Western banking there. Nonetheless, the Shanxi banks were unique. Their dual class shares let owners vote only on insiders’ retention and compensation every three or four years. Insiders shares had the same dividend plus votes in meetings advising the general manager on lending or other business decisions, and were swapped upon death or retirement for a third inheritable non-voting equity class, dead shares, with a fixed expiry date. Augmented by contracts permitting the enslavement of insiders’ wives and children, and their relative’s services as hostages, these governance mechanisms prevented insider fraud and propelled the banks to empire-wide dominance. Modern civil libertarians might question some of these governance innovations, but others provide lessons to modern corporations, regulators, and lawmakers."
SSRN-The Shanxi Banks by Randall Morck, Fan Yang: "The remote inland province of Shanxi was late Qing dynasty China’s paramount banking center. Its remoteness and China’s almost complete isolation from foreign influence at the time lead historians to posit a Chinese invention of modern banking. However, Shanxi merchants ran a tea trade north into Siberia, travelled to Moscow and St. Petersburg, and may well have observed Western banking there. Nonetheless, the Shanxi banks were unique. Their dual class shares let owners vote only on insiders’ retention and compensation every three or four years. Insiders shares had the same dividend plus votes in meetings advising the general manager on lending or other business decisions, and were swapped upon death or retirement for a third inheritable non-voting equity class, dead shares, with a fixed expiry date. Augmented by contracts permitting the enslavement of insiders’ wives and children, and their relative’s services as hostages, these governance mechanisms prevented insider fraud and propelled the banks to empire-wide dominance. Modern civil libertarians might question some of these governance innovations, but others provide lessons to modern corporations, regulators, and lawmakers."
Thursday, January 14, 2010
Just as sad - Cochrane
http://www.newyorker.com/online/blogs/johncassidy/2010/01/interview-with-john-cochrane.html
Sad
http://www.newyorker.com/online/blogs/johncassidy/2010/01/interview-with-eugene-fama.html
This interview is so sad. What is Fama trying to say?
This interview is so sad. What is Fama trying to say?
Tuesday, December 15, 2009
Japanese consumer deflation
I will scream if I see again the comment that Japanese deflation tends to make consumers defer purchases. This is ridiculous. If an economy has 2% deflation a year then a good that costs 100 will cost 98 after a year. Who'd defer the purchase for this saving? The convenience of the good is surely worth at least this much! And how many people put off buying computers because they'd be at least 20% more cost-effective if they waited a year? After an initial lag the steady state emerges.
People who make this statement on deferring consumption have mislearned the lesson from bouts of 10%-20% deflation. When deflation is at these levels then people may defer purchases, but on the other hand the deflation is most probably caused by people deferring purchases.
People who make this statement on deferring consumption have mislearned the lesson from bouts of 10%-20% deflation. When deflation is at these levels then people may defer purchases, but on the other hand the deflation is most probably caused by people deferring purchases.
Subscribe to:
Posts (Atom)
