Introduction This essay (unlike the previous) is an unfiltered look at the famous 1963 James Tobin paper on banking: Commercial Banks as Creators of “Money” (1963) http://cowles.econ.yale.edu/P/cm/m21/m21-01.pdf The Tobin paper has been the subject of recent vigorous blogosphere discussion. Steve Waldman has included a list of links at the conclusion of his own excellent postRead More
Great article here about bitcoin price fixing. The article points out this valuation using the size of the bitcoin economy and a reasonable monetary velocity is at most $4 per bitcoin. “: As pointed out by Jon Matonis and others, Automattic’s WordPress bitcoin revenue turned out to be not representative. The BitPay clearinghouse has anRead More
Regular readers know how I consider trading the bond market in todays environment. I use the cash for clunkers bond trading model, where QE pulls forward sales of bonds which artificially depresses bond prices. Then when QE ends, there is a vaacuum of buyers, which then causes a huge rally in bond prices. Today isRead More
I guess we have the worlds second hetrodox driver on the roads in Oak Park, Il. Turns out this is some kind of reference to the vampires in Twilight.
The tremendous rally in steel prices started back in June. Since June, cold rolled steel prices have jumped over 10%. A more remarkable jump happened in rebar prices – rebar has rallied 30%+ since June, and is at the highest price since the crash of 2008. Steel is a decent proxy for economic activity inRead More