It happened in the blink of an eye: Australia went from energy heavyweight to a country in crisis looking for the equivalent of life support.
Since STT got going in December 2012, we have drifted from frustration to despair and back waiting and hoping for mainstream journalists to recognise the existential threat posed by Australia’s suicidal renewable energy policies.
Now that power prices are skyrocketing and the evidence of a grid on the very brink of collapse is becoming impossible to ignore (a run of statewide blackouts and massive load shedding in South Australia is pretty hard to sweep under the political carpet), journalists are lining up to spill ink over how and why Australia now finds itself in the midst of a power pricing and supply calamity.
Gerard Henderson, the executive director of the Sydney Institute and senior columnist with The Australian hasn’t had much to say about Australia’s…
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This blog was originally published on 10 September 2015. Because of the length, it was originally done as a two-part blog – I have combined them here with minor edits. See the French translation for the first ten and for the second ten reasons.
Recently the Mommy-bloggers paid by the organic industry lobby have been hitting the scientific and corporate communities quite hard with fear campaigns and ‘if you love your children’ guilt trips. Money is pouring in from all angles and even Hollywood stars are reading from their prepared scripts: “Pesticides and GMOs = evil”, and “Organic is what good mothers do”. As many others in the risk management world, I had tolerated their baseless scaremongering as meaningless, eco-religious feel-good pulp from the privileged classes that was better left ignored … until I started to see the mainstream media pick up on them and the marketing managers of many…
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There really is an issue on which economists are unanimous, a big issue to boot.
Source: Diversified Investing | IGM Forum.
Actively-managed mutual funds cannot earn excess returns over index funds because in aggregate they earn the same as index funds, less the difference in cost. This was proposed by Sharpe in his timeless 1991 article, The Arithmetic of Active Management.
Of course, certain definitions of the key terms are necessary. First a market must be selected — the stocks in the S&P 500, for example, or a set of “small” stocks. Then each investor who holds securities from the market must be classified as either active or passive.
- A passive investor always holds every security from the market, with each represented in the same manner as in the market. Thus if security X represents 3 per cent of the value of the securities in the market, a passive investor’s portfolio will have 3 per cent of its value invested in X. Equivalently, a passive manager will hold the same percentage of the total outstanding amount of each security in the market2.
- An active investor is one who is not passive. His or her portfolio will differ from that of the passive managers at some or all times. Because active managers usually act on perceptions of mispricing, and because such misperceptions change relatively frequently, such managers tend to trade fairly frequently — hence the term “active.”
… Properly measured, the average actively-managed dollar must underperform the average passively-managed dollar, net of costs. Empirical analyses that appear to refute this principle are guilty of improper measurement.
In 2008, Warren Buffett made a bet of $1 million with Protégé Partners LLC that, including fees, costs and expenses, an S&P 500 index fund would outperform a hand-picked portfolio of hedge funds over the 10 years ending December 31, 2017.
|By:||Jonathan V. Hall ; Alan B. Krueger|
|Uber, the ride-sharing company launched in 2010, has grown at an exponential rate. This paper provides the first comprehensive analysis of the labor market for Uber’s driver-partners, based on both survey and administrative data. Drivers who partner with Uber appear to be attracted to the platform largely because of the flexibility it offers, the level of compensation, and the fact that earnings per hour do not vary much with the number of hours worked. Uber’s driver-partners are more similar in terms of their age and education to the general workforce than to taxi drivers and chauffeurs. Most of Uber’s driver-partners had full- or part-time employment prior to joining Uber, and many continued in those positions after starting to drive with the Uber platform, which makes the flexibility to set their own hours all the more valuable. Uber’s driver-partners also often cited…|
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What does it mean to “own” something? A simple question (with a complicated answer, of course) that, astonishingly, goes unasked in a recent article in the Pennsylvania Law Review entitled, What We Buy When We “Buy Now,” by Aaron Perzanowski and Chris Hoofnagle (hereafter “P&H”). But how can we reasonably answer the question they pose without first trying to understand the nature of property interests?
P&H set forth a simplistic thesis for their piece: when an e-commerce site uses the term “buy” to indicate the purchase of digital media (instead of the term “license”), it deceives consumers. This is so, the authors assert, because the common usage of the term “buy” indicates that there will be some conveyance of property that necessarily includes absolute rights such as alienability, descendibility, and excludability, and digital content doesn’t generally come with these attributes. The authors seek to establish this deception through a poorly…
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