Morning. It is that time again! Looking at a number of articles and videos I do hope that this edition is as fun as all of the preceding ones.
1. The importance of expectations – A. Santomero
This name should be familiar, but if you don’t know who he is have no fear! Anthony Santomero served as the President of the Federal Bank in Philadelphia from July 10, 2000 to April 2006.
This easy to read paper underlines the importance of expectations when shaping effective policies for the economy. If expectations are not in your favour then they can interfere with monetary policy. Check it out!
2. Check up on that financial stress – Cleveland Fed
Financial risk can quickly spread from one sector to another causing massive problems in the economy. It is very important for the Fed and the country as a whole to know about the financial stress index.
As indicated on the Cleveland Fed website ‘The CFSI is designed to track distress in the U.S. financial system on a continuous basis. Continuous monitoring gives financial-system supervisors the ability to monitor stressful episodes as they are building.’
Need some Inspiration:
1. Here are 6 rules… – L. Coles [Linkedin]
I wouldn’t say that these are 6 rules to life, but there are indeed some important things to keep in mind. The first rule is a good one, no innovator has come up with some ingenious idea by following and agreeing with society. You have to be different and original.
2. To be an entrepreneur, become a contrarian – C. Clifford [Entrepreneur]
Here is an example of the first rule I was just explaining for the link above. To be truly disruptive and innovative you will have to be an entrepreneur. The only way to be a true entrepreneur, according to adjunct professor at Columbia Business School Daniel Isenberg, you ‘almost always have to be contrarian’.
1. The Monkey Business Illusion – Youtube
Well, a pretty interesting video that I think everyone should check out!
In the News:
1. How early can be problematic – Peter Lattman [New York Times]
Thomson Reuters has been in the news for the past couple of days and it wasn’t for good reasons. The firm has been divulging information to important clients two milliseconds than the rest of the market. Of course, the privileged members paid extra for this information.
The U. of Michigan consumer confidence index information was let out to investors who utilize high frequency trading to make a healthy profit.
Now comes the ethical and almost economic problem. The basic question: Is this wrong? If so, why? If other people pay more money for a better service should there be a problem against it. There could be another way to look at it. If privileged firms with huge capital are able to pay for better information than the rest of the market then it could hinder competition.
I am sure there are more arguments ‘for’ and ‘against’ privileged access to information but, this is to be a short read.
Hope you guys have a fantastic day! Enjoy!