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Government Spending Is Out of Control! LOL

The Big Picture

Let’s delve into a case in point of Coase’s theorem: If you wanted to peddle the narrative that government spending is out of control, you might present a chart like the one above, which is an exact replica of a chart that appeared recently in a piece of research from a major Wall St. investment firm. How can this be?

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Wednesday links: narrative fallacies

Abnormal Returns

Strategy On the strange math of stock returns. morningstar.com) The Texas Capital Government Money Market ETF ($MMKT) has launched. (fa-mag.com) morningstar.com) Economy Mortgage refinancing applications are on the rise. fortunesandfrictions.com) Betting on smart beta has generally not worked out well for investors.

Math 267
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Sunday links: addressing existential challenges

Abnormal Returns

Strategy The math on the 60/40 portfolio looks a lot different than it did a year ago. theatlantic.com) Not every government in the world is getting older. washingtonpost.com) Economy The U.S. awealthofcommonsense.com) There is a difference between picking and choosing. labor market is slowing.

Math 264
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10 Tuesday AM Reads

The Big Picture

My Two-for-Tuesday morning train WFH reads: • Stock Pickers Never Had a Chance Against Hard Math of the Market : In years like this one, when just a few big companies outperform, it’s hard to assemble a winning portfolio. economy is doing well, why do so many Americans say it’s terrible? Sapient Capital ) • If the U.S.

Insurance 130
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How Do Higher Interest Rates Push Inflation Down?

Discipline Funds

In fact, because QE reduces interest income it might have a marginally deflationary impact on the economy, all else equal. Interest rates are different and have a much more meaningful impact on the economy by damaging banks and credit markets. So the US government is paying out an extra $390B per year in interest.

Banking 118
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Transcript: Anat Admati

The Big Picture

Why has technology developed the way it has and, more or less, exempt from a lot of government regulations or protected by government regulations? ANAT ADMATI, PROFESSOR OF FIANCE AND ECONOMICS, STANFORD GRADUATE SCHOOL OF BUSINESS: So, my journey starts where I took a lot of math. I was good in math and I love the math.

Banking 204
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Three Things – Weekend Reading

Discipline Funds

What it shows is that consumers are not going to eat the full cost increase from these tariffs and that other factors (like government cuts) are starting to bleed into broader consumption data. Even some of the most Liberal economists in the world like Paul Krugman will tell you that the government shouldn’t meddle in trade.

Taxes 102