Category Archives: Social Science

“Abundance” All Over Again

@ReformedBroker piece entitled “Abundance” has really been resonating in my Twitter stream and for good reason. It’s an excellent piece but somehow oddly familiar to me. A little google search and I found it’s actually a theme written quite extensively by @todd_harrison from Minyanville.

His tag line is that we have deflation in things we DON’T NEED (TV’s, phones, NetFlix, Facebook) and inflation in things we NEED (education, healthcare, housing) He calls it “inflastagdeflation”.

http://www.minyanville.com/businessmarkets/articles/Wal-Mart-Stagflation-Bear-Stearns-Merril/6/20/2007/id/13158

That article was written in 2007 and he has continued to write about it, from 2014 with an excellent chart:

http://www.minyanville.com/special-features/random-thoughts/articles/Todd-Harrison-Prepare-for-the-Return/5/5/2014/id/54796

inflastagdeflation

I’m still trying to wrap my head around WHY exactly this malinvestment¬†occurs?

Edit: I wrote a long, winding hypothesis and decided to delete it. I’d rather hear your thoughts/comments/links.¬†

Economics of Manipulation

This guy wrote another book
This guy wrote another book

Interesting interview with the authors of the book “Phishing for Phools” about economic manipulation of individuals by preying on apparent weaknesses or ‘wantability’ and the moral implications of it. When marketers get so good at their job, where does society draw the line between free choice and nanny state?

Is placing the chocolate at eye level of children a morally acceptable behaviour of retailers? Lifestyle design is another one that seems to be very popular, why do all these gurus seem to be selling self-help instead of an actual product?

Phishing for Phools

Will be reading the book shortly and post a review.

Stratton Oakmont Sales Pitch

You can almost see my apartment in this picture!
You can almost see my apartment in this picture!

Most of you’ve seen Wolf of Wall Street I’m sure. I actually know a guy (or two) who used to work in a Boiler Room. They have great stories. It’s amazing what a skilled salesman can actually accomplish.

http://www.securitiesarbitration.com/news/1998/09/07/could-you-fall-this-hard-for-a-stockbrokers-scam/

And for the record, Boiler Room was a much better movie IMHO!

We’re All Doing the Same Thing

The Thundering Herd
The Thundering Herd

I think even fundamental guys have to be thinking this too:

Quantitative Blow-Ups: We are all doing the same thing.

You can still get rich but it becomes more lottery/musical chairs then an intellectual endeavour or learning a skill