Monthly Archives: September 2007

The Economics of Economist.com

Last week, when hunting for an article about geobrowsers, Stefan Geens discovered that the most recent issue of the Economist was available for free at economist.com. And this week, the same thing seems to be true. He emails me: For … Continue reading

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The Northern Rock Bailout

What to make of the Northern Rock bailout? To me, it looks like textbook central banking on the part of the Bank of England. Mervyn King, the BofE’s chief, has no particular interest in cutting interest rates or otherwise bailing … Continue reading

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Why Bjorn Lomborg is Wrong

Mark Thoma has an excerpt of Partha Dasgupta’s review of Bjorn Lomborg’s new book today. It took me a while to get Dasgupta’s point, so let me try and rephrase it in a slightly simpler manner, since it was pretty … Continue reading

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Art Blogging

Portfolio.com launched its new art blog, Figure Painting, last month, and I’ve been an occasional contributor there ever since. (Which is one reason why you’re not going to find much art-related content in Market Movers any more.) My contributions can … Continue reading

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Fed Funds Update

Just before I went on holiday on August, I offered up a cheeky chart of the Fed funds rate, suggesting that the Fed had stealthily cut rates between meetings. (This was before it actually cut the discount rate.) Greg Mankiw … Continue reading

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Prepayment Penalties

The NYT’s Geraldine Fabrikant reports today on moves to abolish prepayment penalties in the mortgage market. I think this is a good idea, although it would have been a much better idea a few years ago, when loans with teaser … Continue reading

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Getting Your Priorities Straight

Investing advice for the ages, from Russian billionaire Vladimir Yevtushenkov, when asked what he would do with $50 million to invest: "If we are talking about up to $50 million, it’s better to spend it on yourself."

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Distressed Debt Starts to go Mainstream

I mentioned on Monday that retail investors have a hard time buying up structured debt products which look very much as though they’re being underpriced in the present credit crunch. Today comes the news that in the wake of TCW … Continue reading

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The Central Banking Confidence Game

Monetary policy, at heart, is largely about confidence. Yes, the main tool that a central bank has at its disposal is the level of overnight interest rates, but the level of overnight interest rates, in and of itself, has relatively … Continue reading

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Burning Water

This story seems to be doing the rounds, with the implication that a chap named John Kanzius seems to have invented a perpetual-motion machine. Of course, he doesn’t quite come out and say so, but here, see for yourself: An … Continue reading

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Homeownership is an Investment, not a Moral Good

How can I have forgotten to mention John Leland’s piece in the New York Times this morning, when I was responding to Matt Cooper? I blame a lack of coffee. Leland cites the Census Bureau as saying that housing costs … Continue reading

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iPhone Sales: Not Dreadful, Not Spectacular Either

Jeff Matthews is getting a lot of blogosphere linkage for his piece saying that iPhone sales are much lower than the likes of Gene Munster would like to think. But here’s how Matthews’ logic works: The 10,000-a-day consensus among Wall … Continue reading

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Carbon Taxes vs Cap-and-Trade in the WSJ

Deborah Solomon today has a good primer on one of my pet subjects, carbon taxes vs cap-and-trade. She says that it’s "the biggest political battle in Washington over climate change," however, which is over-egging the pudding a lot: the economists … Continue reading

Posted in climate change | 1 Comment

Freddie Mac vs AHM

What a clusterfuck. When American Home Mortgage went bankrupt, Freddie Mac seized $7 million in payments that homeowners had made, some of which was for insurance payments and property taxes. But American Home refused to give Freddie Mac the files … Continue reading

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Does Paulson Really Think the Credit Crunch Will Last a Decade?

How long does Hank Paulson think this credit crunch will last? According to the FT, it could be a decade: The crisis of confidence in credit markets is likely to last longer than previous financial shocks of the past two … Continue reading

Posted in bonds and loans | 3 Comments

The Downside of Homeownership, Part 2

A short response to Matt Cooper, on the subject of homeownership, since I’ve basically said my piece at this point. Matt says that "the social advantages to home ownership seem well documented". I say that a society with high levels … Continue reading

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Greenspan’s New Fiscal Worries

John Cassidy rightly eviscerates Alan Greenspan in the October issue of Portfolio. Cassidy concentrates on Greenspan’s role in inflating the credit bubble which is currently bursting: "For a Fed chairman to have one speculative bubble inflate during his tenure is … Continue reading

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How to Break a CPDO

CPDOs, or Constant Proportion Debt Obligations, were briefly popular at the end of 2006 as a way of getting high returns on AAA-rated paper. At the time, many commentators (notably excluding myself) said that CPDOs were too good to be … Continue reading

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El-Erian to Head Pimco Push into Alternative Investments

>A bit more information on the
El-Erian front
this morning, with Pimco’s Bill Gross talking
to the Wall Street Journal
. The big news is that Pimco seems to be interested
in getting into the alternative investments:
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Citibank Refuses Hand-Drawn Check

People don’t pay by check nearly as much as they used to, because checks are
time-consuming, inconvenient, and not in the slightest bit fun or interesting.
But what if that changed? What if checks became time-consuming, inconvenient,
and fun and interesting? After all, when you write a check, it doesn’t
need to come out of one of those official checkbooks.
Continue reading

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El-Erian Leaves Harvard, Returns to Pimco

Mohamed El-Erian is moving
back
to Newport
Beach
. Here’s my take on the news.
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The Most Credible Financial Blogs

The credibility of Crain’s web reporter Aaron Siegel is questionable. He wrote
a whole article headlined "Credibility
of financial blogs is questionable
," something he deduced from a report
edited by Spectrem Group’s Ed Eusebio.
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Posted in Media | 1 Comment

ABCP: The Trillion-Dollar Question

Let’s say that up until recently, money-market funds
had $1 trillion of their assets in ABCP. As that number starts to fall precipitously,
what are those funds going to invest in instead?
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Valuing Suites in Giants-Jets Stadium

Allan Kreda has a stunning datapoint today: luxury suites in the new Giants-Jets
stadium in New Jersey are selling for $1
million each
. Per season.
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On Bankruptcy

Megan McArdle has a paen
to the US bankruptcy system
today:
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