Last Spring I was considering blogging about Marco Rubio’s run for the U.S. Senate in Florida, but decided against it. I’m a Floridian, so it’s interesting to me, but I thought he was too much of a long shot to be of much interest to people outside of Florida. Now, Rubio appears to be...
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The idea that markets are efficient has come under fire in recent months. Can we be confident that market participants will make repeated, systematic errors? Consider an example. We were taking a walk in our neighborhood a few days ago and came across an office chair that one of our neighbors had put by...
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The Federal Reserve last week announced that it had raised the discount rate—the interest rate at which member banks, which now includes GMAC and other formerly non-bank financial institutions, can borrow from the Fed—by 25 basis points, from one-half of one percent to three-quarters of one. It is no wonder that capital markets reacted...
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