By Felix Salmon
July 1, 2010

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David Merkel’s analysis of Maiden Lane III — Aleph

Stephen Gandel, contra me: “there is no math that links interest rates and housing.” — Time

“Friends of accused Russian spy Anna Chapman say they thought she was either a billionaire or hooker” — ABC

Verizon iPhone coming in Jan — Bloomberg

Chris Whalen goes to war against Bob Rubin — IRA

Research 2000 sued for fabricating poll results — National Journal

Mark Thoma on Kartik Athreya — Economist’s View


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“friends of accused Russian spy Anna Chapman say they thought she was either a billionaire or hooker”

Is that what friends of Bill Gates and Warren Buffet say about them?

Posted by DonthelibertDem | Report as abusive

Stephen Gandel is unbelievable. House prices, as all asset prices, are all linked to interest rates. The theoretically correct way to value any asset is with a discounted cash flow model, where the discount rate has to be the interest rate. “no math”, sure.

Posted by Narg | Report as abusive


Agreed that “no math” is a little strong, but there really is no reasonably reliable mathematical relation. No one’s been able to really show empirically that lower interest rates raise house prices. Of course, that doesn’t mean it’s not really true, just that interest rates are lowered countercyclically by the Fed, so even if lower interest rates raise asset prices, this effect is often dominated by the way in which lowered asset prices lead to lower interest rates.

Posted by Benquo | Report as abusive

Athreya sounds as though he has Aspergers.

Economics is hard and is an exact science. it’s you darn unpredictable people that keep getting in the way of economic models. Especially you know it all bloggers~

Posted by hsvkitty | Report as abusive