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

Free Lunches, Portfolio Allocation, and Equity Premia: Part 1

TANSTAAFL. There Ain’t No Such Thing as a Free Lunch. Someone pays, somehow. The standard textbook example is pilots who refill their plane at a gas station that offers them a “free” steak dinner while charging five cents a gallon more than another station at the same airport. The pilot and co-pilot get $50 dinners […]