Month: June 2012
The Friday File: Internet scammers must minimize false positives (targets that are attacked yet yield nothing) and false negatives (viable targets that are not attacked). It’s because scamming costs time and money and misidentifying false positives is very costly. To…
Read MoreTo cool down an overheated housing market, the Canadian government, in a move called for by some big banks, is reducing the maximum mortgage length to 25 years from 30 (no balloons), decreasing the maximum one can borrow against a…
Read MoreFollowing recessions this severe, economic recoveries are usually quite robust. But not this time. Why? Chronic lack of credit kills sales, depresses investment, and hurts productivity. Prolonged levels of high unemployment erode worker skills, making it hard for the unemployed…
Read MoreBank Run 101: Spaniards withdraw euros from Spanish banks and deposit them in German banks. Since Spanish banks still have the same loans outstanding, they go to the Spanish Central Bank for loans. Since all Spanish banks need money, the…
Read MoreWhile Uruguay’s bid to legalize marijuana sales makes it the first state to go to pot to raise revenues, the effort should be applauded. President Mijica’s proposal would charge the state with oversight over planting, grading and distribution of Marijuana.…
Read MoreThe Friday File: Prior athletic accomplishments are not predictive of future performance with one exception — bowling. Scoring a goal doesn’t increase your chances of scoring another, and there’s no evidence of a “hot hand” in basketball. However, because lane…
Read MoreThe ongoing euro-zone debt crisis has been a borrowing bonanza to both Switzerland (not part of the EU) and Denmark (part of the EU but not the euro-zone). On Tuesday, Denmark issued 2-year bonds with a yield of -0.223% while…
Read MoreLegislation requiring ATM operators (who may not be banks) to post placards listing fees for using ATM machines is being vigorously opposed by banking industry lobbyists, who prefer that fees be opaque. However, this is good legislation. It has low…
Read MoreThe US is 22% of world GDP, the Euro zone 18%, Brazil, Russia, India and China (the BRICs) about 20% and the rest of the world the other 40%. As for growth in calendar year ‘12, the BRICs should hit…
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