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Category Archive for 'Financial Institutions'

Fun Facts to Know and Tell

Posted in Behavior, Financial Institutions on Jan 23rd, 2010

The average nominal price for a share of stock on the New York Stock exchange has been about $35 since the Great Depression. Read more about why here (gated).

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What Happens When You Squeeze One End of a Water Balloon?

Posted in Financial Institutions, Immigration, Regulation, Unintended Consequences on Jun 28th, 2009

New institutions like private stock markets emerge. It will be entertaining to watch the dogs in DC chasing their tails after they institute their new financial institution regulatory overhaul, and when they try to regulate hedge funds, derivatives, money funds and more. A key point from the article:
Besides the economy, startup investors say the high [...]

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Regulation Q(uestionable)

Posted in Competition, Financial Institutions, Price System, You Can't Have it Both Ways on Mar 3rd, 2009

FDR and his Administration aggressively promoted the passage of the bill that included Regulation Q. In general, this regulation put a limit on the interest rates that banks could pay on deposit accounts (to zero percent). Why would the government enforce such a regulation? Because the omniscient planners thought that they could direct resources in [...]

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