Category Archives: markets

Bitcoin and the prospects for a dollar collapse

For Medium, I take a skeptical view of the value of Bitcoin as a hedge against hyperinflation. For citizens looking for hard assets, gold is not the only option. Other commodities, such as copper or wheat, are traded in futures … Continue reading

Posted in financial markets, government debt crisis | 9 Comments

Credit scoring and securitization

Amar Bhide writes, more than just soft information is lost when lenders rely on generic credit scores. Practical obstacles — and in some cases political considerations — exclude from the scores factors, such as income and education, that self-evidently affect creditworthiness. Moreover, score-based lenders, … Continue reading

Posted in financial markets | 4 Comments

My essay on financial bubbles

For Medium, I wrote on financial bubbles, with plenty of Bitcoin trolling thrown in. it is mathematically impossible for all of the bullish investors to get out with a profit. If a stock goes from $10 a share to $100 … Continue reading

Posted in behavioral economics, financial markets | 3 Comments

Karl Denninger on Bitcoin

He writes, All existing cryptocurrencies are designed around a math problem that gets exponentially harder to solve as time goes on. However, the number of “coins” you achieve for solving it is fixed irrespective of where on the curve you … Continue reading

Posted in financial markets, Monetary Economics | 11 Comments

How I think about Bitcoin

Tyler Cowen writes, With crypto-assets, I am carrying wealth more generally into the future. The person who most wants that payoff structure for the wealth carry will end up owning the crypto-asset. Read the whole thing, with which I do … Continue reading

Posted in business economics, financial markets | 17 Comments

Cantercap Charlie on finance and the 2008 crisis

He wrote, if banks are doing their job, the banking system is illiquid, and the rest of the economy —us— have lots of cash. In Econ 101 this is known as “maturity transformation.” Liquidity-wise, the banking system is simply the … Continue reading

Posted in Financial Crisis of 2008, financial markets | 8 Comments

The Cowen-Cochrane dispute on banking

You can start with Tyler, and work backwards. I don’t think it is easy to get around having a part of the economy which is both systemically risky, and also debt-intertangled, as the evolution of shadow banking over the last … Continue reading

Posted in financial markets, Tyler Cowen is my Favorite Blogger | 7 Comments

From capitalism to financialism

Fredrik Erixon and Björn Weigel write, In 2013, natural persons owned only 40 percent of all issued public stock, down from 84 percent in the 1960s. And if we take all issued equity, the trend has been even more pronounced. … Continue reading

Posted in financial markets | 4 Comments

Changes in the corporate landscape

Kathleen M. Kahle and René M. Stulz write (link now fixed), US public firms are very different now compared to 1975 or 1995: fewer, larger, older, less-profitable, with more intangible capital, less investment, and other changes. The US firms that … Continue reading

Posted in financial markets | 9 Comments

Scarcity of financial intermediation?

Ricardo J. Caballero, Emmanuel Farhi, and Pierre-Olivier Gourinchas write, For the last few decades, with minor cyclical interruptions, the supply of safe assets has not kept up with global demand. The reason is straightforward: the collective growth rate of the … Continue reading

Posted in financial markets | 12 Comments