BlackBerry needs a Draghi moment

BlackBerry needs a Draghi moment

| ECB, Gavyn Davies, stock market and equities, Target2

The Blackberry debacle reminds me of another crisis that has passed by the wayside—remember the eurozone's Target2 crisis? The same sort...

1,682 days and all's well

1,682 days and all's well

| business cycle, charts, Federal Reserve, gold, Great Depression, Milton Friedman, quantitative easing, sterilization, stock market and equities, zero lower bound

1,682 is the number of days that the Dow Jones Industrial Average has spent rising since hitting rock bottom back in March 6, 2009. It also ...

An ode to illiquid stocks for the retail investor

An ode to illiquid stocks for the retail investor

| liquidity options, liquidity premium, moneyness, stock market and equities

Today's go-to advice for the small retail investor is to invest in passive ETFs and index funds. These low cost alternatives are better ...

Fama vs Shiller on the 1987 stock market crash

Fama vs Shiller on the 1987 stock market crash

| efficient markets hypothesis, Eugene Fama, fundamental value, Robert Shiller, stock market and equities, technical and fundamental analysis

Tomorrow marks the twenty-sixth anniversary of the 1987 stock market crash. On October 19, 1987 the Dow Jones Industrial Average fell 22.6%,...

What happens when stock markets die?

What happens when stock markets die?

| bitcoin, liquidity premium, stock market and equities

What effect does a stock market listing have on the value of equity? Companies can always choose to issue shares privately rather than list ...

Do banks have a widow's cruse?

Do banks have a widow's cruse?

| David Glasner, hot potato effect, James Tobin, reflux, stock market and equities, unit of account

Elijah and the Widow of Zarephath James Tobin wrote a paper back in 1963 called Commercial Banks as Creators of Money in which he pointed o...

Market monetarists and "buying up everything"

Market monetarists and "buying up everything"

| fundamental value, inflation, market monetarism, medium of exchange, open market operations, stock market and equities

Market monetarists have a reductio ad absurdum that they like to throw in the face of anyone who doubts the ability of central banks to crea...

Google as monetary superpower — a parable

Google as monetary superpower — a parable

| Federal Reserve, hot potato effect, liquidity premium, moneyness, nominal interest rates, open market operations, quantitative easing, quantity theory of money, stock market and equities

In trying to understand how modern monetary policy works, I find it useful to create parables, or alternate monetary worlds, and put them th...