Tag Archives: Business

Heartbleed’s Password Heartbreak


BOOK REVIEW

The Story of an Accidental Revolution, Author: Linus Torvalds.

By Leonid Bershidsky – Linux [2, 3] creator Linus Torvalds wrote, “in a society where survival is more or less assured, money is not the greatest of motivators. It’s been well-established that folks do their best work when they are driven by a passion.”

Two conclusions follow.

First, where there are people passionate enough about a product to work for free, others will claim their work and use it for profit because they are equally passionate about money.

Second, open-source software will never be painstakingly debugged: No one is passionate about that kind of drudgery.

This does not mean commercially-produced software is free from bugs, but at least paid developers bear responsibility for the products. more> http://tinyurl.com/kxt58eg

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When credit is too much of a good thing


By Edward Hadas – What does credit do after it has finished the job it was designed for?

The supply of credit ought to stop at funding productive activity.

But the reality is different. Surplus credit fuels dangerous asset price inflation and funds profligate governments.

Credit too easily goes astray and there is no natural force to rein it in. Without firm regulatory guidance, credit seems to expand indefinitely, until the financial system explodes. That has been the pattern since the end of the Second World War. more> http://tinyurl.com/pyl26kh

The short guide to Capital in the 21st Century


BOOK REVIEW

Capital in the 21st Century, Author: Thomas Piketty.

By Matthew Yglesias – There are different concepts of capital floating around in the economics literature. But Piketty uses an expansive definition of capital so that it is the same as wealth.

The fortunes of the wealthy were destroyed by two world wars, the Great Depression, and extreme wartime finance measures.

Then a few decades of rapid economic growth created a situation in which newly earned income was a much bigger deal than old wealth.

In the contemporary environment of slow economic growth, Piketty says this process is over.

Unless drastic measures are taken, the future belongs to people who simply own stuff they inherited from their parents. more> http://tinyurl.com/lyn4pjv

Updates from CHICAGO BOOTH


Do economic sanctions ever work?
By Robin Mordfin – World leaders are considering how to respond to Russia’s annexation of Crimea from Ukraine, and there has been plenty of talk (but so far, little action) about placing economic sanctions on the newly expanded nation. Some have expressed concern that sanctions won’t have the intended effect, and that they furthermore will be imposed at the expense of the global economy.

Do economic sanctions ever work? more> http://tinyurl.com/mb2rss6

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Dark markets may be more harmful than high-frequency trading


By John McCrank – When the average investor, or even a big portfolio manager, tries to buy or sell shares now, the trade is often matched up with another order by a dealer in a so-called “dark pool,” or another alternative to exchanges.

The pools were originally created for institutions to trade large blocks of stock without creating a large impact in the market. If an order of 1 million shares was tracked, people on the other side of the trade could quickly jack up prices and the original investor could easily pay more than expected.

But much of the trading isn’t like that now – the average size of orders in dark pools has shrunk to around 200 shares, similar to levels on public exchanges. more> http://tinyurl.com/kjyr5qq

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