Sunday links: the money illusion

abnormalreturns
August 17th, 2008

The market already understands that a government takeover, in some form or fashion, is going to happen for the GSEs. (Deal Journal, Big Picture)

Errors occur as a “result of experienced traders trading new markets in old ways.” (TraderFeed)

Looking for dividends? Look overseas. (WSJ.com, also Disciplined Approach)

Shifts in money flow are occurring faster than ever. (Afraid to Trade)

Ten rules for investing from Bob Farrell. (Big Picture)

“Obviously some models are good, but I think its understandable that what I mean is, in finance and economics there has been far too much modeling going on and far too little thinking.” (The Stalwart, ibid)

Sometimes it is better to be “approximately right, than precisely wrong.” (Aleph Blog)

The money illusion, “the confusion of nominal prices with their inflation-adjusted equivalent.” (NYTimes.com also naked capitalism)

Long run inflation expectations are still well-anchored. (Economist’s View)

According to a certain algorithm we are very close to a recessionary boundary. (Freakonomics)

Continued employment on Wall Street is not guaranteed to any one. (naked capitalism)

If the oil age is over, what comes next? (Finance Trends Matter)

“A cyclical downturn in commodities is clearly underway.” (Mish also FT.com)

A profile of uber-bearish Nouriel Roubini. (NYTimes.com also Brad Setser)

“One hesitates to blow things out of proportion, but it’s worth remembering that there are more reasons than just economic efficiency to prioritise continued economic liberalisation and integration.” (Free exchange)

“I believe constraints are key to building great web apps.” (A VC)

On goal setting, “The difficulty lies in knowing when to abandon one goal and move on to something else.” (NYTimes.com)

On procrastination, “the real problem is an inherent optimism about how much work things take.” (Real Time Economics)

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