Taleb l Pundit?

| 08/24/2010 | 0 Kumment(i) |

Hemm artiklu interessanti fil-Flus & Taqsima Investiment ta 'edizzjoni tal-lum ta' Il-Wall Street Journal, intitolat Pessimiżmu Lures CIC Taleb ta.

Fiha, l-reporter, Jenny Strasburgu, jikteb dwar Nassim Nicholas Taleb u fond hedge, Kollha, li bihom huwa assoċjat.

Aħna partikolarment bħal dan kwotazzjoni hi attributi lis-Sur. Taleb, “Ħażniet mhumiex investiment robusta (hekk). Kun ċert li jkollok ġnien li tagħti frott.”

We bhalu għaliex aħna ma tistax tgħid jekk is-Sur. Taleb huwa serju, jew le. Aħna ser jispjegaw.

Jekk … Aqra l-bqija

Hu l-Inċertezza, Stupid.

| 06/22/2010 | 0 Kumment(i) |

Small version of two very different bell curvesAħna ftit jiem koppja tard semmiehx, imma jekk inti ma bbenefikawx l-silta tal-ktieb ġdid, Kapitaliżmu 4.0: Il-Twelid ta 'Ekonomija New fil-konsegwenzi ta' Kriżi, billi Anatole Kaletsky, nissuġġerixxu li inti taqraha. Il silta, Il-Benefiċċji ta 'l-bust, ġie ppubblikat f'din passat edizzjoni Sibt ta Il-Wall Street Journal.

Ħafna minn dan jittratta ma 'l-inadegwatezza tal-ekonomija bħala xjenza, inkluż ekonomisti inabbiltà li tgħid xejn rilevanti dwar il-kriżi finanzjarja u l-implikazzjonijiet dwar … Aqra l-bqija

Good (Late) News from the SEC

| 01/25/2010 | 0 Kumment(i) |

We Missed It a Few Months Ago

On the front page of the The ‘Money & Investing’ taqsima ta 'l-edizzjoni tal-lum ta' Il-Wall Street Journal, there is an article entitled, At SEC a Scholar Who Saw It Coming.

The article is about Henry Hu, who manages the newly-formed Risk, Strategy and Financial Innovation division at the SEC.

Though he sounds like a good guy, we don’t know much about Mr. Hu, but that’s not why we’re writing. It also mentions that in November, Mr. Wu hired Richard … Aqra l-bqija

An Out-of-this-World Analogy

| 07/25/2009 | 0 Kumment(i) |

The physicist Michio Kaku has a short opinion column in Thursday’s edition of Il-Wall Street Journal: Jupiter Gets a Black Eye. Fiha, he mentions the Jupiter’s recent collision with a comet or asteroid–it created a fireball as big as the earth–and then discusses our planet’s vulnerability to relatively large and unknown space objects.

We like the column because it provides a nice–though not complete–analog of risk management at financial institutions. Attwalment, this is one instance where the government may do it better. (Wow, we can’t believe … Aqra l-bqija

Of Rats and Men

| 07/03/2009 | 0 Kumment(i) |

We are in the midst of writing a rather long post on the similarities between teenage girls with low blood sugar and daily and intra-day changes in equity prices. Namely, one can see huge swings in behavior, attitudes, and mood caused by seemingly very minor underlying events, eż, “she looked at me the wrong way.” Il- “she” in this case being an eight-year-old sister.

Madankollu, we couldn’t complete that post because another thought keeps diverting our (limited) attention from it.

We were driving with the Chairman earlier today when she … Aqra l-bqija

Computer Problems

| 06/17/2009 | 0 Kumment(i) |

Despite a few interesting weeks of activity in the world, we have not posted much lately. That’s because we’ve had a variety of computer problems at world headquarters. We woke up last Wednesday morning to a BSoD or Blue Screen of Death on our desktop/network server. Our Western Digital Raptor hard drive had failed. It was unbootable and inaccessible.

We replaced it the following day with a bigger and slightly faster VelociRaptor.

At the same time, we decided to upgrade from Windows XP (Media Center) to Vista Ultimate. As we … Aqra l-bqija

Incentives and the Financial Crisis

| 05/29/2009 | 0 Kumment(i) |

There’s an excellent opinion column in yesterday’s (Mejju 28) edizzjoni ta ' Il-Wall Street Journal. Huwa Crazy Compensation and the Crisis by Alan S. Blinder.

Why do we write that it is “excellent” the dear reader may ask?

Well, for the obvious (and self-serving) reason that we have been writing the same critiques on these pages for much of the past year or so.

Mr. Blinder identifies several problems that created the potential for the crisis and its subsequent realization.1 We will categorize the problems that he … Aqra l-bqija

Inċertezza: In God We Trust

| 05/25/2009 | 0 Kumment(i) |

Mary Anastasia O’Grady has a good interview with Richard Fisher, the president of the Dallas Federal Reserve, in this Saturday’s edition of Il-Wall Street Journal. It is called “Don’t Monetize the Debt“.

Rembrandt's Storm on the Sea of GalileeRegular visitors of our site, who are sympathetic to our criticisms of the Fed; elected and appointed government officials; and financial regulators, will find much with which to agree.

We’re writing today to mention a few parts that are directly related to our site. Ewwel, per our motto in the header, Thought before CalculationAqra l-bqija

The Difference Between Risk and Uncertainty

| 05/14/2009 | 0 Kumment(i) |

Riċentement, we’ve noticed a substantial number of visits referred by search engines from folks trying to understand the difference between risk and uncertainty. Fil-fatt, we have a post from April 20, with the tongue-in-cheek title of Learning the Difference Between Risk and Uncertainty, jew le.

F'dak post, we criticize financial firms because they don’t seem to have changed their uncertainty management tactics or methodologies despite the market upheavals and shocks of the past few years. Fil-fatt, they still refer to the field as “risk management.”

Madankollu, … Aqra l-bqija

Saint James and the Fragility of Life

| 03/18/2009 | 0 Kumment(i) |

When we criticize risk management and discuss our take on Inċertezza ta 'Ġestjoni (our essay is subtitled, “How Trading is Like Playing in a Culvert on a Hot, Sunny, Summer Day”) we often cite our favorite quote from St. James’ biss Epistle:

Come issa, inti li jgħidu, "Illum jew għada aħna għandu jmorru fil tali u tali belt, tqatta 'sena hemm isir in-negozju, u jagħmlu profitt "-
ikollok ebda idea dak il-ħajja tiegħek se jkun simili għada. You are a puff of smoke that appears briefly and then
Aqra l-bqija