Archive for the ‘debt’ Category
The loan spread due to order processing costs
Monday, March 15, 2010 9:36 Comments OffParlour’s (1998) model considers the choice between market and limit orders to show the working of a limit order book. In her simplified world there are only strategic risk-neutral liquidity traders who are endowed with a different evaluation of the risky asset and arrive randomly at the market to submit either a market order (MO) [...]
Web relationships get tangled
Friday, August 28, 2009 16:51 Comments OffWeb portals promote thoughtless online trading. Web portals are paid by online brokers for each customer they send to the broker. Portals run “news” stories about stocks and then include links in the story to online brokers where you can quickly buy or sell the stock. If you give credence to printed material formatted as [...]
Investment bigamy is fine
Wednesday, August 5, 2009 23:01 Comments OffFortunately, comfort zone investing does not require you to be as straitlaced as relationship maturity might. Unlike marriage, multiple partners are fine in investing. Just be sure you know your needs and which investments fill those needs. If your need to conform at work is strong but you also know you need investments that you [...]
Reward yourself along the way
Tuesday, July 21, 2009 15:42 Comments OffA good debt reduction plan will have some fun built into it. Just like a workable diet that lets you order the nachos with extra cheese once in a while, a good debt reduction plan is going to let you blow off some steam to keep you sane. Don’t start packing your bag for Tahiti [...]
Failure to Understand Value
Saturday, May 23, 2009 15:11 Comments OffA third explanation for humanity’s history of rotten economic performance may be failure to understand value. Modern economic theory has conclusively shown that value cannot be created when the returns of economic endeavor fail to exceed the cost of capital. This knowledge has been derived from efficient capital markets linked by rapid communications. Under these [...]