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Finance and belief in how markets work

…risk of creating more). First, there’s a big difference between quantitative trading and quantitative risk. And there may be a bunch of other categories that also exist, but I’ve only…

Cap and Trade and Horse Trading

Robert Waldmann Has a thought about how to get votes for a cap and trade bill in the Senate without giving a windfall to incumbent polluters. The problem is that…

Congressional stock trading

I haven’t paid a lot of attention to the controversy surrounding Congressional stock trading, but 1) I assume it’s a real problem and 2) it’s obviously going to be very…

Greenspan Protesteth Too Much

…mess.” Instead, he argues, “The second, and far more credible, explanation agrees that it was indeed lower interest rates that spawned the speculative euphoria.” but the presumptive cause was the…

Speculation and Oil Prices

…two years. Merino and Ortiz suggest that the rise in prices above this “fundamental” price level is largely the result of speculative activity in the oil futures markets. But I…