Wednesday, February 25, 2009

Passive Management

Finance masters teach us a golden rule of finance, which few people believe and follow.
What do they mean for "passive management"? I think they mean index fund.

The Formula That Killed Wall Street

A very good article about Gaussian copula function by David X. Li and its impact on financial meltdown. Li's paper is here.
Is it another reason to blame China for the financial crisis?

Tuesday, February 24, 2009

How China Helped Create the Financial Crisis

Here by Moritz Schularick.

Brooks on Obama

David Brooks had a good piece on Obama in NYT.
Update: After watching President Obama's speech to Congress tonight, I think Obama is really willing to do all these ambitious reforms and will have a chance to be successful for many of the plans in the long run. Why? Becuase I think he understands the current core problems of the US and he really can talk!

Tuesday, February 17, 2009

Is America's Banking Cisis Worse Than Japan?

Economist.com had a good analysis.

Obama Signed the Stimulus Bill

As I predicted in December and in January, the stimulus plan was passed and signed into law today. In this website, we can see and track the detials of the plan.

Saturday, February 14, 2009

Interview with Simon Johnson

PBS Bill Moyers interviews with Simon Johnson, MIT professor.
I agree with his suggestions, one of which is the anti-trust law on big banks.

Thursday, February 12, 2009

Wednesday, February 11, 2009

Saturday, February 7, 2009

Rogoff on China

Rogoff had an insightful piece about Chinese economy. One interesting sentence caught my eyes in particular:

.... men in China today feel compelled to save in order to find a bride. The same week, a former student of mine who lost his lucrative financial-sector job explained that he had no savings because it was so expensive to date in New York!
An example of cultural difference about savings.

Sunday, February 1, 2009

Interview with Paul Samuelson

Paul Samuelson, the first Ameican who won the Nobel prize in Economics (1970), was not happy with President Bush. His view is very similar with Paul Krugman, the latest Nobel prize winner.