New Nobel economist Robert Shiller on the insanity of markets. Robert Shiller, one of the Nobel laureates in economics announced Monday, has spoken to Paul Solman about the line of research that won him the prize.
Photo courtesy of World Economic Forum Flickr account via Creative Commons. The Nobel committee is muddled on the nature of economics. The Royal Swedish Academy of Sciences continues to astonish the public when awarding the Nobel Memorial Prize in Economics.
Americans Eugene Fama, Lars Peter Hansen, Robert Shiller Win Nobel Prize In Economics. -- Ordinary investors don't stand much chance of beating the market.
It moves way too fast and efficiently. Or it behaves in ways that make no sense at all. What We Can Learn From These Motivational Quotes. N.Y. Fed Fires Examiner Who Took On Goldman Sachs: ProPublica. Carmen Segarra outside the Federal Reserve Bank of New York, on Oct. 10, 2013.
In a wrongful termination lawsuit, Segarra says she was fired by the Fed after she refused to change a finding Goldman Sachs had inadequate controls over conflicts of interest. (Nabil Rahman for ProPublica) Under a Fed mandate, the investment banking behemoth was expected to have a company-wide policy to address conflicts of interest in how its phalanxes of dealmakers handled clients. Although Goldman had a patchwork of policies, the examiner concluded that they fell short of the Fed’s requirements. That finding by the examiner, Carmen Segarra, potentially had serious implications for Goldman, which was already under fire for advising clients on both sides of several multibillion-dollar deals and allegedly putting the bank’s own interests above those of its customers.
How to Look Under a Hedge Fund's Hood. Krugtron the Invincible, Part 1. It's an ill wind that blows no one any good.
The financial crisis that came to a head five years ago with the failure of Lehman Brothers has been especially beneficial to the economist Paul Krugman. Climate change sceptics more likely to be conspiracy theorists. By Graham Readfearn, The GuardianWednesday, October 2, 2013 19:31 EDT Research confirms previous findings which caused fury among sceptics of human-caused climate change Do you think the Apollo moon landings might have been faked or that Britain’s Royal family maybe, just maybe, conspired to assassinate Princess Diana because they didn’t like her very much?
The Myth of the “Free Market” The Myth of the “Free Market” and How to Make the Economy Work for Us by Robert Reich One of the most deceptive ideas continuously sounded by the Right (and its fathomless think tanks and media outlets) is that the “free market” is natural and inevitable, existing outside and beyond government.
So whatever inequality or insecurity it generates is beyond our control. And whatever ways we might seek to reduce inequality or insecurity — to make the economy work for us — are unwarranted constraints on the market’s freedom, and will inevitably go wrong. By this view, if some people aren’t paid enough to live on, the market has determined they aren’t worth enough. 'Sharing economy' is here to stay, so get used to it. Add these personality quirks to the qualities that mark you as a social dinosaur: You're not comfortable renting out a room in your house or turning over the keys to your car for hours or days at a time to total strangers.
When you travel you prefer to stay at a hotel with a predictable level of guest service rather than racking out on someone's couch.... Fiscal debates: Troubled waters ahead or perfect calm? A Move Is Afoot to Keep Climate Science Out of Classrooms. For decades objections to the theory of evolution have bedeviled individual teachers, school boards, state boards of education and state legislatures.
Educators fought to keep evolution in science classes and creationism out. We resisted intelligent design, the notion that natural selection alone cannot explain the complexity of life-forms, which served as a way of getting creationism through the back door. We are now fighting legislation that encourages teachers to teach the “evidence against evolution”—facts found only in the creationist literature. This is what counts as restraint in executive pay: bonuses that quadruple your salary - Quartz. Large British businesses have entered a “new era” in executive pay, according to a report from Deloitte published today.
The median salary for an executive director at a FTSE 100 firm rose by only 2.5% this year, to around £840,000 ($1.3 million), a similar increase to the previous year. And fewer investors voted against executive pay packages during the latest round of shareholder meetings, suggesting greater support for supposedly more modest pay policies. Shareholder votes on pay policies become binding, rather than simply advisory, for London-listed companies starting in October. Deloitte reckons this could be the initial sign of restraint in response to the new rules. But as always with executive pay, the meaning of restraint is relative. Seems pretty generous. Still, restraint in executive pay remains an elusive goal. Government Hands More Than $1 Trillion to Wealthy While Deficit Is $642 Billion. The Simple Reason for the Long Downturn: Housing Bubble Burst. (Image: via Shutterstock). Many economists and business writers view the duration and severity of the downturn as being a mystery.
They argue that it has something to do with the financial crisis, although the exact nature of the relationship is often not quite clear, with the financial crisis looming as a dark cloud hanging over the head of an otherwise healthy economy. On 5th Anniversary Of Lehman Collapse, Americans Still Angry. By Michael Erman NEW YORK, Sept 15 (Reuters) - A few years ago, Larry Summers, then the director of President Barack Obama's National Economic Council, held a private meeting with some of Wall Street's top bankers and executives. Although the worst of the financial crisis was over by then, Summers - now seen as a candidate to be the next chairman of the U.S. Federal Reserve - chastised bankers for being out of touch, saying they didn't understand how angry average Americans were with them, according to a participant in the meeting. The Official 'Eat The Press' Financial Crisis Retro Reader. Happy five-year anniversary of the financial crash and its attendant economic calamities, everyone!
Where my class warriors at? These 2 Stats Prove California's $10 Minimum Wage Is A Big Deal. California is very, very close to making a $10 minimum wage a reality. Doing so nationwide would change the lives of America’s working poor. A June study by Restaurant Opportunities Centers United, a national organization focusing on racial equity in the restaurant industry, found that (statistic #1) a $10.10 minimum wage would have pulled roughly 58 percent of the nation’s 10.4 million working poor out of poverty in 2011.
Shilling: Advantage America. Advantage America John Mauldin September 10, 2013 Today’s Outside the Box, which comes to us from good friend Gary Shilling, is unusual because that old confirmed bear is waxing positively bullish about the future prospects of the US. In doing so he mirrors my own views. It is just a matter of time before I go from being bearish on the US because of the dysfunctional US government to being an irrational perma-bull, at least for the next few decades. There is just too much upside potential with this country of ours — if we can muster the political will to handle our serious fiscal issues. Gary builds the positive case beyond the fiscal concerns, and a compelling case it is.
Gary pays particular attention to the importance of a strong US dollar. No, Economics Is Good for Lots of Things. California Minimum Wage Increase To $10 An Hour Passes Both Houses, Gov. Brown Expected To Sign. 401(k)s are replacing pensions. That’s making inequality worse. The once-dominant defined benefit pension plan--which pays out a fixed amount after an employee retires--is on its way to becoming an historical artifact. Consumer Confidence: A Useful Indicator of . . . the Labor Market? Consumer Confidence: A Useful Indicator of . . . the Labor Market? U.S. Health Care vs. The World. Walmart Could Actually Benefit From Minimum-Wage Hike. President Barack Obama wants workers to make more money. Walmart and other low-wage employers also want to make more money. Emerging Nations Save $2.9 Trillion Reserves in Rout. Developing nations from Brazil to India are preserving a record $2.9 trillion of foreign reserves and opting instead to raise interest rates and restrict imports to stem the worst rout in their currencies in five years.
Foreign reserves of the 12 biggest emerging markets, excluding China and countries with pegged currencies, fell 1.6 percent this year compared with an 11 percent slump after the collapse of Lehman Brothers Holdings Inc. in 2008, data compiled by Bloomberg show. The 20 most-traded emerging-market currencies have weakened 8 percent in 2013 as the Federal Reserve’s potential paring of stimulus lures away capital. Trade Gap in U.S. Widened in July From Almost Four-Year Low. The trade deficit in the U.S. widened in July from an almost four-year low as Americans imported more fuel and automobiles, showing the world’s largest economy is picking up.
How 37-Year-Old Teacher Imperils Pimco’s Bond Bet: Mexico Credit. 90 Percent Of Employers Tie Workers' Pay To Company Performance. U.S. Workers Are Still Completely Freaked Out About Job Security (CHART) Time has healed no wounds when it comes to how secure Americans feel at work, according to a recent poll. The poll, conducted by Gallup, found that Americans continue to express elevated concern about being laid off, having their hours cut, and having their benefits and wages reduced. Schedule for Week of September 1st. Republicans’ “Market-Oriented” Health Care Reforms Won’t Work, Part 2. Obama should take lessons from Sweden to G-20. US 10 Year, CPI, and Annual % Change, 1791-Present. Consumer Spending in U.S. Rises Below Forecast on Slow Wage Gain. Economic Update: Economics and Health. What Steve Keen is maybe trying to say. Regulatory uncertainty: A phony explanation for our jobs problem. Summer 2013: Who Really Owns the U.S. National Debt?
CORRECT PREDICTIONS AND THE STATUS OF ECONOMISTS. The Big Picture » Video - powered by FeedBurner. How Much Has America’s Net Worth Recovered? Bill Frezza: Too-Big-To-Fail Banks Gamble With Bernanke Bucks. Who Are the Long-Term Unemployed? - Matthew O'Brien. Creating a History of U.S. Inflation Expectations. How is Obamacare going to affect me? About Singapore… Republicans’ “Market-Oriented” Health Care Reforms Won’t Work, Part 1. The College-Loan Scandal: Matt Taibbi on the Ripping Off of Young America. The Amazing Confusion in Economic Policy Debates by Dean Baker. Matt Taibbi Rips Idea Of Larry Summers Running Federal Reserve. Median Household Income Dropped 4 Percent Since The End Of The Great Recession: Report. Luxury Item Investing Returns.
Stiglitz: The Lessons of the U.S. Crisis for Economic Theory & Policy. Summers, Yellen allies wage behind-the-scenes effort to win Federal Reserve nod. Bruce Bartlett, Former Reagan Adviser, Says Obama Should Tap Janet Yellen For Fed Chair ASAP. Arliss provides riveting commentary on politics and litterboxes. Modern Monetary Theory Primer. Reading Between the Lines: A Memo From Fed Chairman Marriner Eccles. CORRECT PREDICTIONS AND THE STATUS OF ECONOMISTS. The death of theory? Why did God invent economists? Why Congress’s Gridlock Doesn’t Paralyze Government but Gridlocks Democracy.
Workers ROC the Restaurant Industry. Austerity sinks all boats. What caused the recession of 1937-38? A new lesson for today’s policymakers. The cruel trick played by history on Milton Friedman. Social Security is a model, not a failure, for Washington budgetmaking. Europe Growing Again Means Boost for Global Economy. 10 reasons why economics is an art, not a science. Economics is an Art, not a Science. What Janet Yellen. Milton Friedman, Unperson. The Path of Wage Growth and Unemployment. Mayday for America's middle class. Who’s afraid of Walmart?
America's Engineering Hubs: The Cities With The Greatest Capacity For Innovation. Student Loan Debt Statistics - American Student Assistance. The Gallup Blog: The School Cliff: Student Engagement Drops With Each School Year. How to Tackle U.S. Employees' Stagnating Engagement. Social Security Disability Benefits.
Living in America will drive you insane — literally. Amazon is worse than Walmart. Obamacare and Employment. Great-reversal_v2a.pdf. The Century of the Self - Part 1. The Power of Nightmares - Part I. USA: 1940 vs 2010. Detroit, the New Greece. Detroit’s Bankruptcy Reveals Dysfunction Common in Cities. Commodity Prices and Inflation: The Perspective of Firms. The Myth of China’s Economic Reform. How Fox News created a new culture of idiots. The Strange Disappearance of Cooperation in America II. Cutting through the Thicket of Economic Forces (Why Real Wages Stopped Growing II)
The End of Prosperity: Why Did Real Wages Stop Growing in the 1970s? A Proxy for Non-Market Forces (Why Real Wages Stopped Growing III) The Strange Disappearance of Cooperation in America.