"A funny thing happened to me this morning …"
RW: Congratulations, Dr. Krugman. You have officially made history.
Prediction Markets: US elections and Economics Nobel Prize
“Coming back to the Nobel Economics prize, what are prediction markers revealing? NYT Economix blog is listing the latest odds from some betting exchanges, whereas Greg Mankiw is reporting the results of the Harvard Nobel Prize Pool. I guess we'll know which market is the most efficient for this particular event soon...”
RW: Great post! I didn’t see Krugman’s name one either list…really a surprise!
Looking for Bond-Market Approval
“The common analogy comparing the equity market and the fixed-income market is this: If the two are a family, stocks are the teenagers, and the parents are the bond market. Monday’s activity, then, could fairly be described as the house party while Mom and Dad are away on business.”
RW: Did I hear this correctly? This is the biggest daily house party EVER???
Essence of the "Rescue" Plan
“To stimulate lending, the bailout plan will attempt to recapitalize banks. The method of recapitalization is best described as robbing Taxpayer Pete to pay Wall Street Paul. In essence, money is taken from the poor (via taxes, printing, and weakening of the dollar) and given to the wealthy so the wealthy supposedly will have enough money to lend back (at interest) to those who have just been robbed.”
RW: I am sorry, but I must agree. Further, what happened to buying distressed assets? I guess that comes later (nevermind the fact that buying distressed assets is what Paulson sold to the public).
Warren Buffett wisdom
“Stock market thoughts from the Sage of Omaha: You know, five years from now, ten years from now, we'll look back on this period and we'll see that you could have made some extraordinary (stock market) buys. That doesn't mean it won't get more extraordinary a week or a month from now. I have no idea what the stock market is going to do next month or six months from now. I do know that the American economy, over a period of time, will do very well, and people who own a piece of it will do well.”
RW: Does anyone have the youtube code for Warren Buffet's interview with Charlie Rose?
An unlimited guarantee requires unlimited access to financing …
"It looks like the G-7’s actions have kept the financial system from falling off the precipice. But a world where the government guarantees the ability of privately owned banks with potentially troubled balance sheets to raise wholesale funding is neither desirable nor necessarily stable for long."
RW: Regulators are going to have a whopper of a mess to clean up with all of this fancy intervention!
$700 Billion? So What?
“Guaranteeing an asset is equivalent to buying the asset while giving the seller an option to repurchase at the same price. Conversely, buying an asset is equivalent to guaranteeing the asset while retaining an option to purchase at the guarantee price. (The proof is left as an exercise for the reader.)”
RW: I wish that he/she would just do it for us!
Meltdown! Space-Station Toilet Breaking Down Again
“The master bathroom for three astronauts aboard the International Space Station is on the fritz again just days before a trio of new spaceflyers are due to launch toward the orbiting lab, NASA officials said Friday.”
Do personality tests work?
“Personality questionnaires have long been used to predict performance in the workplace. The problem: Job applicants often lie on them. Or stretch the truth. Now, psychologists from the University of Toronto have developed a personality test that can predict who will excel in certain areas, even when respondents try to fake their answers.”