Elsewhere on Wednesday,
– Taibbi: A Republican Workers’ Party?
– Yes Minister Brexit special – Sir Humphrey explains all.
– Transmitting liquidity shocks across borders: evidence from UK banks, from the BoE.
– Soaring CEO pay is also the right’s problem.
– Icahn: “Trump is right on about our economy. A capitalistic system cannot exist if government is at war with business.”
– Jo Michell: On ‘heterodox’ macroeconomics.
– When you win 100,000 Jet shares before Wal-Mart decides to buy: “It feels good; it feels really good,” Martin, a York, Pennsylvania, resident, said in a phone interview during his lunch break. “The way I think to describe it is ‘occasional hysterical laughing’.”
– Emma AI, soon trading GSK, Tesla and USTs in a marketplace that doesn’t need you.
– Museum economics, the Met vs the MoMA.
– Diamond economics, in particular when you try to sell the world’s largest diamond by cutting out the diamond powers-that-be.
– Today in potential over-complications: “History offers many examples of dictators who worsened their behavior significantly over time (like Zimbabwe’s Mugabe) as well as dictators who displayed remarkable improvements (like Rawlings of Ghana). We show that such mutations can result from rational behavior when the dictator’s flow use of repression is complementary to his stock of wrongdoings: past wrongdoings then perpetuate further wrongdoings and the dictator can unintentionally get trapped in a repressive steady state where he himself suffers from ex-post regret. This then begs the question why such a dictator would ever choose to do wrong in the first place. We show that this can be explained from the dictator’s uncertainty over his degree of impunity in relation to wrongdoing, which induces him to experiment along this dimension. This produces a setting where any individual rising to power can end up as either a moderate leader, or as a dreaded tyrant. Since derailment is accidental and accompanied by ex-post regret, increasing accountability can be in the interest of both the public and the dictator.”
– Further listening, Ritholtz talks to Danny Kahneman.
– Further watching, Thaler vs Fama on whether markets are efficient.
– Further, further reading.