The eurozone mess is the classic illustration of a saying attributed to Herbert Stein, “Economists are very good at saying that something cannot go on forever, but not so good at saying when it will stop.”
Category: Economics
Why Investors Should Avoid Hedge-Funds
Reading a book, it’s often very hard to judge just how reliable the author is, or how cherry-picked the data might be. But if a high-profile hedge-fund industry association spends months putting forward a point-by-point rebuttal, and that rebuttal is utterly underwhelming, then at that point you have to believe that the book has pretty much got things right.
Why Germany Should Lead Or Leave
Europe’s tragedy is not the result of an evil plot, but stems, rather, from a lack of coherent policies. As in ancient Greek tragedies, misconceptions and a sheer lack of understanding have had unintended but fateful consequences.
Quants, Derivatives, And The Myth Of The Rogue Trader
The richness of math is in the abstraction. It allows you to take a step back from reality, and that gives us the freedom to think the way we want. Mathematicians display a great deal of imagination.
The Euro Is Not Unassailable, Even With The ECB’s Bond Buying
The problem is that the currency union is only as strong as its weakest link. Lopping off the weakest part of the Eurozone is not akin to removing a cancerous lesion from an otherwise healthy body, but more like the puncturing of an important blood vessel, which could well destroy the patient.
