Monthly Archives: February 2007

Macroeconomics is just like nutritionism

Have you read that Michael Pollan article on nutritionism yet? You really should. Here’s a chunk: Most nutritional science involves studying one nutrient at a time, an approach that even nutritionists who do it will tell you is deeply flawed. … Continue reading

Posted in Econoblog | 4 Comments

Mortality bonds and longevity bonds

You can bet on people dying: Liam Pleven and Ian McDonald in the WSJ have a good overview of how life-insurance companies are increasingly turning to the capital markets to hedge the risks they bear of insured individuals dying too … Continue reading

Posted in Econoblog | 20 Comments

Will Goldman Sachs help absorb subprime losses?

According to a rumor over at Dealbreaker, one of the big losers in the subprime mess is none other than Goldman Sachs: “Not sure if this is on your radar, but a Goldman trader took a $1B (yes, that is … Continue reading

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Metaphor of the day

“If it walks, ducks and quacks like garbage it passes the smell test of being garbage.” —Nouriel Roubini

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Why the XM-Sirius merger might not be so good for consumers after all

The WSJ had a wonderful Reply-All (think a techy version of Econoblog) yesterday on the subject of whether the XM-Sirius merger would be good for consumers. Mark Cooper, a consumer advocate, said no; Donald Russell, a former DoJ lawyer, said … Continue reading

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Is there any reason to still care about the Dow?

Here’s the chart of yesterday’s price action in the Dow, the S&P 500, and the Nasdaq. Note anything crazy? Like a whopping great big down-250-points-in-one-tick plunge in the Dow at about 3pm? As you can see from the broader stock … Continue reading

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Stern replies to Leonhardt

Remember last week, when the world was carefree, and all we had to worry about were minor things like the fate of the planet? David Leonhardt’s Economix column bravely entered the world of discounting — and managed to get it … Continue reading

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Can one day’s fall mean the market is getting bearish on the US economy?

Brad Setser says that “I thought Leonhardt was better than usual” today — and he’s right. David Leonhardt’s Economix column comes on a Wednesday, which is perfect timing to look at the economic fundamentals, insofar as there are any, behind … Continue reading

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No one knows why the market fell, and it doesn’t matter anyway

Dan Gross gets it. Andrew Leonard gets it too. In fact, any halfways-decent financial journalist gets it, and, if honest, would simply write a story saying “the market went down and we don’t know why”. But instead we’re inundated with … Continue reading

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The world of Aaa debt just got a lot more interesting

It seems that no one has a pleasant word today for Moody’s, except maybe investors in Icelandic bank bonds. The ratings agency went on a triple-A spree yesterday, bringing pretty much every Icelandic bank up to Aaa status. Landsbanki was … Continue reading

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