Category: Behavioral Economics
-
Market Update
Corporate Investments and GrowthApple’s $600 billion US investment over 4 years faces skepticism due to its existing $55 billion annual investment in China, where 90% of its products are manufactured. Palantir’s quarterly sales reached $1 billion, growing 47% with $306 million in commercial revenue and $426 million from US government contracts, primarily defense and CIA.…
-
Econ in 20 minutes
tl;dr: great video on theories why humans make “bad” choices over and over again.
-
What Causes Recessions
The four major theories of business cycles in relation to the Great Recession of 2008: Keynesian theory, real business-cycle theory, monetarist approaches, and the Austrian School of Economics. Each theory offers a unique perspective on the causes of the recession. Keynesian economics attributes the recession to a shortfall in aggregate demand, while real business-cycle theorists…
-
Trump, Tariffs, and Tesla
Professor Damodaran discusses the intricate relationship between politics and investing in the context of globalization , job losses, and economic disruption. Noting the significant impact of globalization since the 1980s, particularly highlighting China’s dramatic growth and the resultant winners and losers, including blue-collar workers and small businesses affected by these shifts. The discussion touches on the political…
-
Nietzsche on Power
Possibly more predictive and instructive than all modern economic texts. Definitely a frame for understanding personalities like Putin, Xi, and Trump, Nietzsche and the Truth About Power” investigates the dynamics of power and morality by contrasting individuals who succeed through integrity with those who manipulate and exploit others. It draws on Nietzsche’s philosophy , particularly the concepts…
-
Tariff Man
“Can Trump’s Tariffs Work?” explores President-elect Donald Trump’s strong advocacy for tariffs as a means to protect American jobs and stimulate the economy, an approach he has termed himself as a “Tariff Man.” It details his proposed tariffs on goods from Canada, Mexico, and China, and the economic reactions these policies triggered. The discussion contrasts Trump’s tariff…
-
Meditations on Extremistan
In “Meditations on Extremistan,” Nassim Taleb discusses the concept of extreme events and their impact on various phenomena, using examples from finance, human height, and behavioral economics. Taleb emphasizes that while extreme deviations cannot be completely ruled out, they are unlikely in certain phenomena without compelling explanations based on physical processes or energy. He criticizes…
-
How Google Makes Money
Aravind Srinivas and Lex Fridman, they explain that Google earns revenue primarily through search advertising on Google AdWords. Google’s search engine, with its high daily traffic, serves as the largest real estate on the internet for advertisers to bid for keywords related to their businesses. When users click on these ads, Google charges the advertisers, with…
-
Whale Family Office
The rise and fall of Bill Hwang, the man behind Archegos Capital Management, Hwang, initially an immigrant from South Korea, built a 20B fortune through his hedge fund and family office, only to lose it all when a stock sale triggered a margin call and exposed his excessive borrowing.
-
How does the consumer feel?