August, 2009 | SLG

Recently there are a lot of debates between the Keynesian and Austrian economists on the skyrocketing government deficit. My opinion is this: In general, government spending is wasteful.  To expect governments to efficiently allocate capital is a larger mistake than to believe in Bernie Madoff. Keynesian policies only makes sense if consistently followed.  The true …

August, 2009 | SLG Read More »

October, 2009 | SLG

Someone in linkedin asked how human behavior contribute to financial bubbles and how to manage such risk.  Here is my answer: If you think of a bubble being the consequence of inefficiencies in the market, then we can examine how the two premise of efficient market theory can be broken: 1. Misinformation. Academics assumes perfect …

October, 2009 | SLG Read More »