Felix Salmon

The end of asset allocation

It’s a pretty solid rule of investing: good ideas tend to become broadly adopted. And once enough people are all doing the same thing, that thing is probably not a good idea any more but rather a bad idea.

Antigua sued for $24 billion

Latest piece of Stanford idiocy:

A group of R. Allen Stanford-run business investors sued the government of Antigua and Barbuda, claiming the Caribbean nation helped the financier…

When IOUs become currency

OK, this is getting REALLY annoying — it’s happened again! Why is Ecto killing my posts when I publish them? Here’s a shorter version of my now-lost IOU post:

More on Taibbi, Goldman Sachs, and squids

(Having Ecto troubles: this is the second time I’ve written a blog entry, clicked “Publish” in Ecto, and then only the headline appears, with the entry body being blank. Anybody know how to fix this?)

More notes on blogging

I got some very interesting feedback on my notes about blogging, in the comments, from other blogs, and from participants at the SAJA seminar I led. Karl, in particular, had some extra questions, which are worth answering:

Why Berkshire’s cutting back on reinsurance

Scott Patterson reports that Berkshire Hathaway wrote less than half the amount of reinsurance in 2008 as it did in 2006, and that 2009 will be substantially lower still. He relates this development to Berkshire’s credit rating, which was downgraded from triple-A by Moody’s in April:

Why I’m unconvinced by calls for a second stimulus package

Brad DeLong has an impassioned plea for further fiscal stimulus under the headline “Fiscal Policy: The Obama Administration Is Not Making Much Sense These Days”. His basic argument is simple: if the $787 billion package was designed using assumptions which turn out to have been overoptimistic, then surely now that unemployment is heading into double digits a second major stimulus is warranted.

Food TV chart of the day

The latest issue of my favorite obscure periodical, Meatpaper, has just arrived in the mail, and features this wonderful chart, in an article by Chris Ying:

An income tax is not a wealth tax

The WSJ, on both its print and its online front page, as well as in the headline of the article in question, says that the “Health Bill in House Relies on Wealth Tax“.