If a country’s growth rate is higher than the growth in the interest cost of servicing its debt, a debt model is sustainable. A business can only roll over it’s debt, if it’s capital base grows faster than the cost of servicing that debt, and same holds true for government. This is basic finance. The [...]
With all this iPhone nonsense buzzing around the world today, you may have missed a huge decision. In Quanta v. LG Electronics, the Supreme Court ruled that a company can’t enforce patents down the supply chain, when a customer purchases a full licensed product from one of the patent holders licensees. LG wanted to collect [...]
Warren Buffet has bet the principal in the hedge fund Protégé Partners, that an S&P 500 Index Fund will yield higher returns than the net average returns (less management fees) of any five hedge funds of his choice. The amount of the bet: $1m and the proceeds going to charity. – Fortune
The New York Times has an awesome chart breaking down inflation and all its little components. “Each month, the Bureau of Labor Statistics gathers 84,000 prices in about 200 categories — like gasoline, bananas, dresses and garbage collection — to form the Consumer Price Index, one measure of inflation. It’s among the statistics that the [...]
The orange juice futures market is a better predictor of Florida’s weather than the National Weather Service. A 1984 paper by UCLA finance professor Richard Roll.
Zillow.com – My brother told me about this weeks ago, but the site is official only as of today. It estimates real estate pricing using a variety of variables such as taxes, comparable sales, etc. For states like California and Arizona it is remarkably accurate, but not so good for states like Indiana.
Google joins S&P 500. (WSJ, subscription required) This should really raise the equilibrium price at which Google trades since some of the stock will be tied up in index funds. As more stock is tied up in index funds, there is less available for trading effectively raising the price. Looks like the stock has already [...]
Google Finance – As Kottke said, Google did for stock charts today, as they did for maps when they released Google Maps. This finance application is really amazing, and leaps and bounds ahead of it’s competitors.