Sunday, March 22, 2009

Scott Sumner on the efficient markets hypothesis

He doesn't find much use in discarding it.

It's along the same lines as Will Wilkinson's objections to "inefficient market" models of regulation: they don't include irrationality in the regulators. In fact they tend not to model the regulators at all. This is standard in economics; show a socially inefficient outcome according to the theory and suggest a regulation to fix it. Public Choice is the school that attempts to model government agents as well, but its conclusions are not as popular or oft-used as traditional models of markets. Sumner's entry has a small taste. Read more.

Thursday, March 19, 2009

David Bowie and Klaus Nomi on SNL

Singing "The Man Who Sold the World":


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Monday, March 16, 2009

Stewart v. Cramer

I enjoyed the interview on The Daily Show, if only for the "gotcha" moments using old Cramer footage, but I told my friends that Stewart readily confused normal activity on the stock market with stupid and unethical activity from banks. He does not have a good grasp on this stuff and his brand of comedic journalism is best used to illuminate hypocrisy.

Megan McArdle explains it better. Read more.

Tuesday, March 03, 2009

Taking Economics


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