Essays

Does Trump Deserve Credit for the Stock Market?

As an advocate for economics education, I get upset when I hear bogus economics claims being made in politics and the media. When this happens, consumers are fooled into spending irresponsibly. Voters are fooled into supporting policies detrimental to the economy. This has been on my mind lately as President Trump doesn’t let a day go by without taking credit for how well the U.S. stock market is doing. Continue reading “Does Trump Deserve Credit for the Stock Market?”

Book Reviews

Book Review: University of Berkshire Hathaway

university of berkshire hathawayThe market is flooded with books about Warren Buffett. This is the 5th one that I have read. Some books assemble or quote Buffett’s writings; others reverse engineer Buffett’s investment strategy. Often these authors seem to be trying to convince you they have inside information or trying to indoctrinate you into the Buffett cult. University of Berkshire Hathaway is not one of those books. It has details you won’t find anywhere else, which makes it a relevant addition to the prolific repertoire of books about Buffett and Berkshire. Continue reading “Book Review: University of Berkshire Hathaway”

Book Reviews

Book Review: Flash Boys

Flash Boys pbk mech.inddMichael Lewis is one of the great non-fiction authors of our time. He brilliantly tells tales involving highly technical details in ways that are entertaining and engaging, and–like any great artist–he makes the feat look easy. Lewis uses the colorful character and language of his subjects and weaves their personal stories into the greater picture.

The topic of Flash Boys is high-frequency trading (HFT). High-frequency traders utilize the fastest hardware, software, and internet connections–all carefully located–to engage in arbitrage schemes that suck billions of dollars from investors by beating their trades to the exchanges and raising the prices. What is most disturbing is how so many of the exchanges, banks, and brokers enable it, profit from it, or are complicit in it.

Flash Boys follows the men who exposed this dark underworld of Wall Street and set out to create their own alternative stock exchange that would play by its own rules, rules that are fair to investors. It also follows two other stories connected the HFT movement. This is a great story told by a great storyteller, and it is essential reading for anyone who desires a better understanding of how the world works.