Miscellaneous Musings


Bernanke & Citadel, Politicians & Priests

There’s been much made of the recent move by Ben Bernanke accepting a position – less than a year after leaving his position as Chairman of the Fed – with hedge fund Citadel. I’ll admit that my initial reaction was the populist one: Here we go again with the revolving-door between Washington and Wall Street […]

SNB, CHF and Our Colleague…

The Swiss Franc (CHF) was the talk of the financial world last week. We feel compelled to write something about it, but our response will be measured because we know someone directly affected by the situation. You see, we have this colleague…

Square Root of 2

Since the days of the Babylonians it’s been known that square root of 2 – which I’ll shorthand as SQR(2) from here on out – has a lot of numbers in the decimal places.  And even if they didn’t know specifically that it was irrational, with their available mathematical knowledge, they came up with …

Repeated Games & Airline TV

Pricing models are something that have long fascinated us.  So compelling is the topic that it’s a well known form of entertainment amongst economists to try and decipher how businesses set prices.  This is especially fun when there’s a good reason to think that there might be something unintuitive and more interesting than simple supply […]

Survivorship Bias, World War II Bombers & Your Portfolio

Imagine being tasked with examining the tattered carcases of bombers returning from missions in Germany during World War 2.  Your analysis will inform the military commanders where to best place additional armor on the planes before sending them on their next missions.  Let’s say that you found the most bullet holes around the tail gunner […]