Assorted links

by on February 19, 2012 at 6:49 pm in Uncategorized | Permalink

1. More on DuckDuckGo.

2. Markets in everything, honey trap edition, or should they call it something else?

3. Do hedge fund returns have lower volatility?

4. The still-underrated Dylan Matthews covers MMT, graphic here.

5. Remarkable Swedish rescue, but of what?

Peter February 19, 2012 at 7:04 pm

Thanks for the link to The Sun. There’s a neat new feature under which you can rotate the picture of the Page 3 chick through the full 360 degrees.

Andreas Moser February 20, 2012 at 2:34 am

The Sun girls are also experts on human rights: http://andreasmoser.wordpress.com/2011/02/09/human-rights-with-hollie/ – or so they think.

Miley Cyrax February 19, 2012 at 7:20 pm

@2

Usually I’m sick of the Brits-have-bad-dentistry jokes, which have been beaten like a dead horse, but… goddamn that guy has horrible teeth.

Alan February 19, 2012 at 8:56 pm

LA Story
Harris: SanDeE*, your… your breasts feel weird.
SanDeE*: Oh, that’s ’cause they’re real.

My last girlfriend liked my slightly irregular teeth.

Jamie_NYC February 19, 2012 at 9:38 pm

My thought exactly…

Andrew' February 20, 2012 at 3:56 am

I’m not following…his girlfriend liked your teeth too?

steve February 20, 2012 at 2:54 am

His dentistry is fine, but he needs to be snared by an orthodonture trap.

Ari Timonen February 20, 2012 at 3:51 am

This is actually rather common in UK. Some people suggested this is because of the lack flouride in the the drinking water.

Daniel Kuehn February 19, 2012 at 7:30 pm

Kinda weird they couldn’t manage to track down a picture of Joan Robinson or Abba Lerner, huh?

Barkley Rosser February 19, 2012 at 7:45 pm

That hedge funds have lower volatility is not surprising as they reputedly use elaborate straddle strategies that are designed to do just that. The link seems to suggest that they do not necessarily get higher returns. This would be in contrast with high dividend yield stocks that get both higher returns and lower volatility in the long run compared to other stocks.

Matthew Gunn February 19, 2012 at 9:11 pm

Hedge fund return volatility and risk exposure can be understated due to stale pricing. If hedge funds hold more exotic and illiquid assets, reported prices may not fully reflect volatility in the true market price of these assets, and the hedge fund will report smoother returns than is actually the case. Hedge fund return volatility and contemporary correlation with the market will be understated.

Asness, Krail, and Liew explore the evidence here http://papers.ssrn.com/sol3/papers.cfm?abstract_id=252810. For example, they find hege fund returns are correlated with lagged returns of the market (eg. the return from the previous month), suggesting some degree of stale pricing in hedge fund assets.

AC February 19, 2012 at 10:56 pm

I’d like to use DuckDuckGo, but it doesn’t seem like a very good search engine.

Adrian Ratnapala February 20, 2012 at 1:02 am

AC, I agree for the one thing I tested. We will see how things go, google is no longer the only bunch who know how to make one.

On the other hand I like that the “.us” top-level-domain is getting the Tuvalu treatment.

Jacob February 20, 2012 at 4:12 pm

I’ve known about DuckDuckGo for about six months now. Google is my go-to search engine; but If I can’t find something in Google, I frequently try DuckDuckGo and sometimes find what I’m looking for.

Adrian Ratnapala February 20, 2012 at 1:00 am

#5:

“A bit like a bear that hibernates. Humans can do that,”

I didn’t know humans could do that, and I bet there is something about this guy’s body that makes him better at it than most. But I guess it is hardly suprising that your body slows down in the cold, or that various systems adapt to that.

I suppose this is the start of an evolutionary slope, even before bears could hibernate through the whole winter, some of them were facing accidents like this guy, thus selecting for better hibernateors.

Rahul February 20, 2012 at 10:47 pm

On a related note, body cooling is medically induced to reduce systemic damage in a bunch of scenarios. The first successful end stage rabies treatment a few years ago had a similar protocol.

Dan in Euroland February 20, 2012 at 1:40 am

#4

Economic Logician had an accurate assessment of Wray’s work: http://economiclogic.blogspot.com/2011/02/heterodox-money.html

FYI February 20, 2012 at 2:22 am

#4, so what is the explanation according to the MMT guys for all the hyper inflation cases we had in the last 50 years? How about the high inflation the US faced in the 70s? The article is not clear on that and I could not find any good link in google about it.

To imagine that the government can print money non-stop at any time without any bad consequence sounds incredibly naïve to me.

Matt Waters February 20, 2012 at 2:47 am

Indeed, they in fact admit that printing money can only lead to inflation when the economy is at full employment. But that’s… exactly what Paul Krugman and other mainstream Keynesians say as well. MMT’er act like they’re on this extreme edge, but I don’t see how their views are not just orthodox Keynsianism.

And as the article says, MMT’er blissfully ignore falsifying datapoints like Australia and Canada, or for that matter the US in the 1990’s. It is definitely true that the demand for an economy has to have an upward trajectory to keep the economy at full employment, but demand is not a zero-sum game. If the government does not run deficits, that does not mean the private sector has a deficit instead. Instead demand is equal to MV and either M or V can go up or do without government changing its deficit.

Beefcake the Mighty February 20, 2012 at 9:41 pm

The difference is, Krugman thinks we’re in a liquidity trap right now, MMT’ers think we’re in a liquidity trap always.

Andreas Moser February 20, 2012 at 2:32 am

I am more attractive than the guy in story no. 2.

londenio February 20, 2012 at 4:59 am

I don’t know how attractive you are Andreas, but let’s just say that the fact that this guy is not *that* attractive makes the test more powerful. If you ask, say, Ryan Reynolds to hit on your wife out and then she cheats, you don’t really know what was going on. Maybe she wasn’t cheating on you to begin with but you gave her a good reason to do so. On the other hand, if she cheats with the dude in the picture, your marriage may not be working as well as you thought.

Rahul February 20, 2012 at 10:48 pm

Reminds me of the legal entrapment arguments in FBI undercover sting ops.

Andreas Moser February 20, 2012 at 9:29 am

Well, because you asked: http://andreasmoser.wordpress.com/about-me/ (although I have a beard now)

But you are making a good point. If my wife cheats on me with Quasimodo, then something is terribly wrong. However, I still would prefer her not to cheat at all.

santcugat February 20, 2012 at 5:52 am

Funny that Australia and Canada are both still experiencing explosive housing booms. (You’d think people would have learned by now, but from what I hear from my Canadian friends, this time, things are different)

As I remember, both Ireland (remember the Celtic tiger anyone?) and Spain were also experiencing significant budget surpluses right until the crash.

Cliff Arroyo February 20, 2012 at 8:22 am

“honey trap edition, or should they call it something else?”

Mayo trap? You’re welcome.

cool pipes February 20, 2012 at 12:20 pm

Post writing is also a excitement, if you be acquainted with afterward you can write otherwise it is difficult to write.

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