The Planck Length

Around 1.6 x 10 -35 meters, particle physicists start to bump up against the Planck length. Under this distance, the world we know melts into a quantum foam where space and time become indistinguishable and subject to the forces of quantum gravity. Gaining an understanding of the world below the Plank length is a difficult [...]

Contextualizing Government Spending

Paradoxes readily emerge if one takes the recent government spending out of context. How does even more debt solve a debt problem? Are we communists now? Are we creating more problems by trying to solve them? Let’s look at the context: The value of the global economy has declined by tens of trillions of dollars [...]

Choosing The Right Synthetic Super Senior “AAA” Rated Assets

A recent piece from the Washington Post suggests Timothy Geithner is heavily considering a public-private partnership model to de-clog financial institutions weighed down by bad assets. Under this plan, private investors would bid for assets and receive backing from the government if needed. We’re still waiting on the actual specifics of the plan, but according [...]

An Instrument of Economic Rationalization

Over the last few months we’ve learned that some of the biggest names in sports and business have needed a little extra “juice” to continuously knock the ball out of the park, be it in Yankee Stadium or on Wall Street. Athletes and business professionals alike claim they were held captive by the culture of the time [...]

Two Keys To Economic Recovery

  While the partisan rancor over Obama’s stimulus plan rages on, the most important keys to economic recovery remain unchanged. The first key, an aggressive slashing of interest rates languishes in the graveyard of month old news while the second key, aggressive liquidation of toxic assets, has been addressed, but not fully resolved by the [...]

Questionable Reasoning For Why Variance Is The Central Measure of Risk In Asset Returns

“Risk, Markowitz reasoned, could be thought of as the variability of returns: what statisticians call their ‘standard deviation,’ or the square of that standard deviation, their ‘variance.’ Asked by me why he had conceived of risk in this way, Markowitz simply cited how often he had come across the concept of standard deviation in the statistics courses [...]

The Solution to the Financial Chaos of 2008

Dear Dove,  I enjoy your Dove Ice Cream bars a lot. In college, whenever I was stressed out, like really stressed out, I would throw my pen/pencil/book down and exclaim to my roommate … “I need a dove bar.” I would walk 10 minutes to the convenience store, buy a delicious Dove ice cream bar, [...]