Animal spirits are involved in a whole lot of our decision making. The famous economist, John Maynard Keynes knew this all along. We make countless decisions guided by peer pressure, often regretting them in hindsight. For example, investing in stocks, experimenting with drugs, going to college, and even political stances are all activities influenced by … Continue reading Animal Spirits Peer Pressurin’ Keynes
So… we admit Alex gave you the ol’ bait ‘n switch with his post on Harry Markowitz, who basically came up with the sound advice that we shouldn’t put all our eggs in one basket. He teased saying that this was the “key to making cheddar.” You thought he was going to teach you how … Continue reading Robert Merton: Finally, The Real Key to Making Cheddar (And Possibly Causing Recessions)
If you want to be financially secure 30 years from now and you haven’t opened a Roth IRA, you’re shooting yourself in the foot. These words of wisdom have come from anyone that is comfortable with their money, including financial planners, economists and any website offering financial advice. Although I am, by no means, comfortable … Continue reading Oh My Gosh! Just Open A Roth IRA Already!
Whenever I mention I study economics to strangers in conversation, I’m often half-jokingly asked whether I know of any good stocks to invest in. Studying economics apparently means I know all the secrets to what made Warren Buffett filthy rich. Unfortunately, these secrets have yet to be given to me, and I have to still … Continue reading Harry Markowitz: The Key to Making Cheddar
Whenever someone finds out you are an economist, the line of questioning that follows changes quite dramatically. “Do you think the stock market is going to pull back in the next couple months?” “Is the student loan bubble going to pop?” “What should I invest in?” Suddenly you are a soothsayer, oozing predictive power from … Continue reading Lawrence Klein: The Economic Fortune Teller