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Bits
and Pieces
Why capitalism fails. Modern finance creates illusions of stability that will
cause capitalism to implode, argued economist Hyman Minsky. Minsky's
reputation—once tarnished—is now being revived as his theories are
proving prescient. Maybe his prescriptions will too. (Boston
Globe)
Why
capitalism succeeds. Man is a born striver. Support that drive with free
markets, and communities will end up happier, healthier, and more
prosperous, argued philosopher Samuel Johnson. (Wall
Street Journal)
The recession is
over. One strong
indication that always turns up at a recession's end is capacity
utilization. It looks like it bottomed this summer. (Zack's Investment Research)
How to Get Help
And don't
forget that our updated client page (http://www.yebu.com/portal.htm)
offers a full list of who does what and who you should contact for help
with various issues. Contact numbers and email links are available
from that page as well.
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Bad Behavior
Maximizing revenues. Menu engineers help restaurants increase sales "by
hacking common flaws in human decision-making." They will strip away
dollar signs and "anchor" patrons with a higher-priced item so
everything else looks affordable. (Gigaom)
Quant
models bypass humans. Geeky formulas won't work unless they include variables for
qualitative elements like trust, social networks, and herding. (New
York Times)
The
invisible hand at work. Adam's Smith theory works, but it promotes a
competitiveness that forces investors to focus on relative performance
and short-term returns. (New
York Times)
Happiness
is catching. Expanded and deep social networks can keep you and your clients
healthier, wealthier, and happier personally and professionally. (New
York Times)
Bubbles
result from investors behaving badly. Economists don't
believe in bubbles, but then they don't understand that investors exhibit
different decision-making behavior in different "feedback
loops," writes finance professor Robert Shiller. (Shanghai
Daily)
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