Among the people who have been updating The Theory of Finance for the ObamaNation is Gregg Sommerville, whose job depends to some significant extent on people not believing the following riff: More music below the fold. The Bailout Rap and the Subprime Mortgage Blues

by divorced one like Bush Well, here is what I’m doing to support the US of A’s economy. It’s a lesson in the real model of economics. It is a scaled version of the concept of stimulus. I even did it by using financing just to make the model as close to real as possible. […]

Rdan Quick look at the new template, unfinished form. Any wishes?

Rdan David Zetland at Aguanomics had some fun with a lecture and thought exercise. 02 November 2009The Political Economy of Lobbying Last week, I taught my students about different auction techniques. After I auctioned four books under different rules, I auctioned $1.00 for $3.75. Now before you say “WTF?” (or perhaps I am too late!), […]

Robert Waldmann I am eager to learn from this blog again. A problem with solar and wind generation of electricity is the sun isn’t always shining and the wind isn’t always blowing and it is costly to store energy. I don’t see why energy can’t be stored using hydroelectric dams. They store huge amounts of […]

by Bruce Webb Divorced One and I are having what I think is a useful exchange that started with my post on Eligibility and Enrollment which he followed up with More on the Public Option. If you haven’t read that please do as this piece won’t make much sense otherwise. DOLB and I now agree […]

It took me many years to understand the phrase “moral hazard.” It’s a fundamental tenet of economics, usually used to explain that, since consumers are untrustworthy, businesses need to charge them more.* It was finally cleared up for me in the midst of a presentation last year about how it’s a “moral hazard” issue that […]

By Spencer, The unemployment rate jumped to 10.2%. Except for the peak rate of 10.8% after the 1982 recession this is the highest in the post WW II era. The overall tenor of the report was very similar to the past three months reports and sent the message that the economy is no longer collapsing […]