We need to stop tweaking the efficient market hypothesis and create models that resemble the circus that is the reality-based stock market.
|By: inoljt Friday May 24, 2013 6:00 pm|
In America a dollar today is worth much less than a dollar in 1980. Americans marvel at how much cheaper things used to be in the past, when Coca-Cola and movies only cost five cents.
In Japan the story is quite different. For long periods in the past two decades, nominal prices have in fact declined.
|By: David Dayen Thursday October 18, 2012 9:45 am|
The stock market has become a war between algorithm-based robots, a war for speed where the winners trade 10 microseconds faster than the losers. But all sides of this war have armed themselves so well, have reduced the timing of trades so much, that high frequency trading no longer makes much money.
|By: David Dayen Tuesday October 16, 2012 8:15 am|
Vikram Pandit, the CEO of Citigroup, who presided over some of the worst years in the history of the bank, abruptly stepped down today. He will be replaced by longtime Citi executive Michael Corbat. Here’s Pandit’s statement.
|By: David Dayen Thursday October 11, 2012 6:00 am|
The IMF has released a new study showing that, in essence, the world would be a much safer place if international banks stopped trading in the financial markets.
|By: David Dayen Monday October 8, 2012 3:32 pm|
One of the areas that Sen. Ted Kaufman and his chief of staff Jeff Connaughton tried to focus on during his accidental two-year term in the Senate was high-frequency trading. The 2010 “flash crash” showed the potential dangers of this fast-growing industry. Consider that our financial system places a large emphasis on where super-computers are sited relative to the trading machines.
As Felix Salmon points out, one of the consequences of the melting polar ice sheet is not just that companies want to drill for oil in the Arctic. They want to lay cable through the shorter Arctic route, to increase the speed of information between the US and Asia by a matter of 20-60 milliseconds. And that infinitesimal shaving off the time of a trade matters. It’s the difference between placing a trade too early and placing it too late. It means billions upon billions of dollars. And that’s a huge problem.
|By: dakine01 Saturday October 6, 2012 1:00 pm|
This week has seen the final jobs reports that will be available to make a possibly measurable impact prior to November 6. Wednesday’s report from ADP had 162K new private sector jobs. Yesterday’s (Thursday, October 4) Jobless claims report had a slight increase to 367K new jobless claims and 4 week rolling average of 375K new claims. Finally, today’s (Friday, October 5) Bureau of Labor Statistics report has an increase of 114,000 jobs for September and the jobless rate falling to 7.8%.
|By: Dean Baker Sunday September 9, 2012 5:00 pm|
The Democrats’ discussion of the loss of the Clinton budget surpluses is a tale of paradise lost. Unfortunately, it was an illusory paradise that serious people should not concern themselves with. That is why it is disappointing to see Ezra Klein give us more tales of the evaporating budget surplus.
|By: David Dayen Thursday August 30, 2012 1:39 pm|
Citigroup has settled a class-action lawsuit with shareholders over how Citi managed subprime securities during the financial crisis, a second-order fraud unconnected to the actual fraud of securitization and knowingly selling the bad securities in the first place.
|By: David Dayen Monday August 13, 2012 12:45 pm|
Like everyone else but two members of the House, Paul Ryan voted for the STOCK Act, a watered-down version of a bill that would ban insider trading among members of Congress. Before he did that, however, Ryan spent 2008 wheeling and dealing his bank stock portfolio to match his knowledge gained as a member of Congress during the financial crisis.