Relevant and even prescient commentary on news, politics and the economy.

You searched for: label/market-clearing prices

No Bailout Plan

…financial institutions, which marks assets to the market value, no matter the conditions of the market. When no meaningful market exists, as is the current market for mortgage backed securities,…

More on the McCain Health Care Plan

…company profits. I would guess that the individual health insurance market is quite competitive and the profit rate, while probably higher than in group markets due to bargaining power, is…

The US economy is in a funk

…weakened against the euro, China has stepped up its intervention in currency markets to keep its yuan inexpensive and exports growing. Factoring in higher oil prices too, the overall trade…

Mind of the market…

…in non-Western cultures around the world, including those living close to how our Paleolithic ancestors lived, and although their responses vary more than those of modern peoples living in market

STOCK MARKET VALUATION

In the previous OldVet comments I talked about the relationship between interest rates and the stock market. I just though I would but up one example of what I was…

Free market demands rational choice making

…recall is earth shattering news, but how is a consumer in a free market economy to make the rational decisions to conform to the rational behavior that market theory demands?…

Milton Friedman on Sarbanes-Oxley

…way that was calculated was the drop in stock market market capitilization during July 2002 when the legislation was passed. Somehow, SOX gets the entire responsibility for that July 2002…

The Gasoline Market and Government Policy

…on the economics of proposals that would increase the level of federal intervention in the gasoline market. He points to this letter signed by Milton Friedman, Edward Prescott, and others:…

Market Valuations for Employee Stock Options

…true “cost” of the employee options. Lowenstein properly notes that we are talking the market price at the time the option is granted – as the value of an option…