Quants Trading the Butterflies

Matt Levine, writing a Money Stuff: Another view of quant trading is that it reinforces market inefficiencies: Your algorithm notices some correlation, everyone else’s algorithm notices the same correlation, you all pile into the correlation, the correlation increases, and the original reason for the correlation goes away, or was spurious to begin with. The butterflies and […]

PPP Loan Gossip

From Matt Levine, writing in Money Stuff: I have engaged in this sort of gossip before, but for the most part I am pretty chill about “inappropriate” businesses getting PPP money. The idea of the PPP is that if a smallish business lost revenue, the government would give it a cheap loan, and if it […]

Also Shareholders Though

If a cruise ship company runs cruises on which people get infected with a deadly disease and then spread it further when they get off the ship, that could be bad for its passengers and bad for the world. Also shareholders though. Matt Levine, Money Stuff, 1 June 2020

Political Lies and Business Lies

From MoneyStuff today: One point that I often make about the U.S. legal system is that lying about financial matters is quite broadly and severely criminalized—basically any sort of dishonesty having anything to do with money is arguably wire fraud—but lying about politics is common, legal, and frankly encouraged. If you sell knickknacks on the internet and […]

Make Good Things

The basic way that, like, capitalism works is that you have incentives to make good stuff because people will pay you for it. If you invent a thing that people need, and you manufacture it efficiently, you will get rich. There are errors. If you invent a thing that people don’t need, that is actively […]

ICO Regulation

It is not uncommon for financial innovation to get a bit ahead of the rules that are supposed to regulate it, but the ICO market got so far ahead of the rules that it started, boomed, peaked and died before the rules came along. Matt Levine, Money Stuff

Smart Finance

“Handing your creditors a loaded gun seems bad, but if it’s the only way to stop them from stabbing you right now then it’s fine.” — Matt Levine — Matt Edwards (@engineershope) March 8, 2019

Who Can Follow the Law All the Time?

On the other hand: What? This is a federal court casually suggesting that there is “uncertainty as to the very possibility of maintaining adequate compliance mechanism in light of complex and shifting government regulations.” Ehhhh, who can follow the law all the time, asks … a panel of federal judges? Matt Levine, Money Stuff 6 March 2019

CEO Sexual Harassment Insider Trading

The normal way to pay a public-company CEO involves giving him mostly stock, so if he wants to lead a fancy lifestyle, he will eventually need to sell some of his company’s stock to fund it. And so if a CEO has a long history of sexual harassment, then he will also inevitably have a […]