SERVING THE QUANTITATIVE FINANCE COMMUNITY

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by gardener3
August 1st, 2013, 6:49 pm
Forum: Economics Forum
Topic: a quick explanation of QE and inflation
Replies: 49
Views: 15539

a quick explanation of QE and inflation

<t>These are the daily Fama-French factor returns for periods sorted based on 3mo treasury:Average of smb Average of hml1 0.02678% 0.00357%2 0.01545% 0.04258%3 -0.01657% -0.01137%4 -0.00461% 0.03051%5 -0.01245% 0.02287%Sorted on 10 year - 3 month:Average of smb Average of hml1 -0.04945% 0.02682%2 0....
by gardener3
August 1st, 2013, 6:32 pm
Forum: Economics Forum
Topic: a quick explanation of QE and inflation
Replies: 49
Views: 15539

a quick explanation of QE and inflation

<r>QuoteOriginally posted by: farmerQuoteOriginally posted by: gardener3You have to look at changes in expectations or do an event study (<URL url="http://www.kellogg.northwestern.edu/faculty/vissing/htm/brookings2012.pdf"><LINK_TEXT text="http://www.kellogg.northwestern.edu/fac ... gs2012.pdf">http...
by gardener3
August 1st, 2013, 6:24 pm
Forum: Economics Forum
Topic: a quick explanation of QE and inflation
Replies: 49
Views: 15539

a quick explanation of QE and inflation

<t>QuoteOriginally posted by: farmerQuoteOriginally posted by: gardener3Unless you borrow to sit on cash, borrowing will lead to money creation and inflation. Although there have been few instances of firms with loads of cash borrowing long (like google), it makes no sense unless you have good inves...
by gardener3
August 1st, 2013, 4:28 pm
Forum: Economics Forum
Topic: a quick explanation of QE and inflation
Replies: 49
Views: 15539

a quick explanation of QE and inflation

<r>QuoteOriginally posted by: farmerQuoteNobody really understands gold prices and I don't pretend to understand them eitherI can explain it to you, Ben. Gold prices were helped by specific demand, and general commodities demand, in developing economies. Then you started your "quantitative easing" a...
by gardener3
August 1st, 2013, 4:16 pm
Forum: Economics Forum
Topic: a quick explanation of QE and inflation
Replies: 49
Views: 15539

a quick explanation of QE and inflation

<t>QuoteOriginally posted by: farmerSuppose we have two borrowers. Borrower A has been in business for 50 years. Borrower A has an excellent credit rating. Borrower A's business is growing at 0%. Borrower A wants to fine-tune leverage to maximize shareholder value. Borrower B has been in business fo...
by gardener3
August 1st, 2013, 4:00 pm
Forum: Trading Forum
Topic: $ MARKET ANALYSIS $
Replies: 2025
Views: 317589

$ MARKET ANALYSIS $

QuoteOriginally posted by: KondratievWhy do some traders/analysts sell newsletters and expensive memberships ?I don't need to do that.You know what they say: you get what you pay for
by gardener3
July 4th, 2013, 10:33 am
Forum: Economics Forum
Topic: good comedy in europe
Replies: 114
Views: 22952

good comedy in europe

<t>QuoteOriginally posted by: exneratunriskQuoteOriginally posted by: gardener3QuoteAbout money and housing market: you disagree with for example this ?But, does the amount of money one has made something to do with her contribution to a society? To me its like, is a great card player a better perso...
by gardener3
July 1st, 2013, 1:10 pm
Forum: General Forum
Topic: nicholas nassim taleb jealous
Replies: 119
Views: 15960

nicholas nassim taleb jealous

<t>QuoteOriginally posted by: DominicConnorI don't see "envy" as the right word though I can see why it is used because I don't know of an English word that works for what I interpret as his feelings.He sees people who he feels are basically wrong being taken seriously and helping make big decisions...
by gardener3
July 1st, 2013, 1:07 pm
Forum: Economics Forum
Topic: good comedy in europe
Replies: 114
Views: 22952

good comedy in europe

<t>QuoteAbout money and housing market: you disagree with for example this ?But, does the amount of money one has made something to do with her contribution to a society? To me its like, is a great card player a better person in the context of a society? IMO, she is nit better but also not worse.The...
by gardener3
July 1st, 2013, 8:34 am
Forum: Economics Forum
Topic: good comedy in europe
Replies: 114
Views: 22952

good comedy in europe

<t>QuoteIs it a fair objective to create an economy that does not produce bubbles and crisis?NoQuoteIf yes, do we have a common sense about money as a means by which members of a society can settle their debts to one another?NoQuoteCan we agree that "housing" market mechanics (speculative economy) t...
by gardener3
June 26th, 2013, 4:24 pm
Forum: General Forum
Topic: nicholas nassim taleb jealous
Replies: 119
Views: 15960

nicholas nassim taleb jealous

<t>QuoteOriginally posted by: katastrofaCan we have this expressed in less pompous terms?I haven't read Taleb's recent works. But I read fooled by randomness, and this is what I got from that book:1. Shit happens (shit property)2. So, don't invest in shit you don't understand (anti-shit property)3. ...
by gardener3
June 10th, 2013, 10:16 pm
Forum: Economics Forum
Topic: quantitative easing, government, speculators, and the zero lower bound
Replies: 26
Views: 12661

quantitative easing, government, speculators, and the zero lower bound

<r>QuoteOriginally posted by: Traden4AlphaQuoteOriginally posted by: gardener3QuoteIf money is cheap, people gamble, and if people are gambling they'll look for the flashiest new casino in town.Low rates would mean tight money policy not loose money. I can't make sense of the fact that when rates fa...
by gardener3
June 10th, 2013, 9:27 pm
Forum: Economics Forum
Topic: quantitative easing, government, speculators, and the zero lower bound
Replies: 26
Views: 12661

quantitative easing, government, speculators, and the zero lower bound

<t>QuoteIf money is cheap, people gamble, and if people are gambling they'll look for the flashiest new casino in town.Low rates would mean tight money policy not loose money. I can't make sense of the fact that when rates fall below 2%, investors and businesses who are normally rational and profit ...
by gardener3
June 10th, 2013, 7:59 pm
Forum: Economics Forum
Topic: quantitative easing, government, speculators, and the zero lower bound
Replies: 26
Views: 12661

quantitative easing, government, speculators, and the zero lower bound

<t>QuoteOriginally posted by: farmerPrice stability reduces relative volatility of the most volatile item in the basket, while preserving relative performance. This makes riskier investments the most attractive.Suppose cars go up 1% then up 1%. And houses go up 5% then down 3%. You're investing in c...
by gardener3
June 10th, 2013, 7:39 pm
Forum: Economics Forum
Topic: quantitative easing, government, speculators, and the zero lower bound
Replies: 26
Views: 12661

quantitative easing, government, speculators, and the zero lower bound

<t>QuoteTo me, the central flaw in regulating the aggregate supply of money is that it does not (and I agree that it can not) control the intra-economy flows of money. Try to give more money to the aggregate economy and it will almost certainly be diverted into over-investment in some segment.Why wo...
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