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Links 1/3/08
naked capitalism — Banks defy Brown's call to free up credit Guardian What I really think about Finance Robert Waldmann, Angry Bear December's JPMorgan Global PMI Shows Just How Far The Infection Has Spread Global Economy Matters, Good concise recap. Why We Keep Falling for Financial Scams Wall Street Journal. Who do you mean by "we"? (I did not believe there were WMDs in Iraq either) Interesting nevertheless. Refuted economic doctrines #2: The case for privatisation John Quiggin Fannie Mae’s Last Stand Bethany McLean, Vanity Fair. VF also has a feature on Cate Blanchett. If this is ...

links for 2009-01-03
Economist's View — Taleb vs Merton, Cont. - Felix Salmon The definitive account of the Fanniefredderung - The Curious Capitalist FDR and the New Deal: Did it prolong the Great Depression? (No...) - Salon What I really think about Finance - Robert Waldmann Tyler Cowen: Statist, anti-Rothbardian agent of the Kochtopus - Justin Fox Refuted economic doctrines #1: efficient markets hypothesis — Crooked Timber Efficient markets and terrorism futures - Andrew Gelman ...

Links 1/3/08
naked capitalism — Banks defy Brown's call to free up credit Guardian What I really think about Finance Robert Waldmann, Angry Bear December's JPMorgan Global PMI Shows Just How Far The Infection Has Spread Global Economy Matters, Good concise recap. Why We Keep Falling for Financial Scams Wall Street Journal. Who do you mean by "we"? (I did not believe there were WMDs in Iraq either) Interesting nevertheless. Refuted economic doctrines #2: The case for privatisation John Quiggin Fannie Mae’s Last Stand Bethany McLean, Vanity Fair. VF also has a feature on Cate Blanchett. If this is ...

Today's Reading List
EconLog: Library of Economics and Liberty — ... . The shortest read is from Robert Waldmann . A sudden decline in the liquidity of assets can create problems as firms can't unwind leveraged positions without extreme market disruption. If the assets had always been illiquid, those leveraged positions would never exist. I think that would be a good thing. The term Austro-Keynesian comes to mind. Read the whole post. The most frustrating read is from ...

How valuable is liquidity?
winterspeak.com — I enjoyed this though provoking post from Angry Bear (who I usually do not agree with): I don't think that "market liquidity" is a good thing. A sudden decline in the liquidity of assets can create problems as firms can't unwind leveraged positions without extreme market disruption. If the assets had always been illiquid, those leveraged positions would never exist. I think that would be a good thing. Now there is a class of arguments that rational investors will take highly leveraged positions to profit from asset miss pricing and that this is socially ...

Sunday links: down but not out
Abnormal Returns — ... “If people aren’t trying to beat the market, liquidity barely matters to them.”  (Angry Bear) ...