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

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Guess who wrote this op-ed??

…From now on, laws that apply to the private sector must apply to Congress, including whistleblower, conflict-of-interest and insider-trading laws. Trading on nonpublic government information should be illegal both for…

Is the House Trying to Encourage Criminal Activity?

…website notes: Congress created the Commodity Futures Trading Commission (CFTC) in 1974 as an independent agency with the mandate to regulate commodity futures and option markets in the United States….

DeLong, Krugman and Risk Aversion

…I have to Brad’s analysis in general. He is explaining the market price but not explaining trading volume. Trading volume in MBS based CDOs is very very low (markets have…

Economics of contempt on CDS

…own the underlying bonds. Banning naked CDS would kill the liquidity that has made the CDS market so useful. Without speculators providing liquidity by trading naked CDS, legitimate hedgers would…

Hedge Funds Get FED Aid

…imagine liquidity is very closely correlated with trading volume. That doesn’t mean that high trading volume will cause a large increase in asset prices. It certainly doesn’t mean that innovation…

More growth in GDP = more profits for investors?

…correlation between high valuations and future returns. That may create a particular problem for those investing in emerging markets at the moment. According to Mr Montier, emerging markets are trading

You, Me and China make Three, part II

…natural candidate to support an open world trading and financial system…” We benefit, but we are “ambivalent”. “An open trading system tempts every country to pursue strategic trade policies that…

Finally, the Big Event: China Revalues

…the RMB in the inter-bank foreign exchange market after the closing of the market on each working day, and will make it the central parity for the trading against the…