I should be working on a paper (have three in various stages but am sick of all three, so a quick update on things and a look around (much like the old newsletter).
The Blogging World and other News
In the most important blog article of the week, at the Financial Rounds the UnknownProfessor announced the good news on his son who is cancer free! Less important he also has a really cool group of links that would help people who are considering getting a PHD.
FreeMoneyFinance has an interesting (although not necessarily the final word) on why smart people make a higher income but do not necessarily have greater wealth. The article proposes many good points to which I would add look at medians. If intelligent people are overconfident, they are apt to take greater chances and thus while having higher average income, median income may be closer to the overall average. But regardless, the suggestion of living below your means is a good one!
I must confess I do not really understand much about China buying into the Blackstone Group. They say they are doing it as an investment, which may be, but just seems strange. I guess that is what happens when you have large surplus.
The NY Times writes on a recent study by Booz Allen, Hamilton that finds that boards of directors are getting much more active in replacing underperforming CEOs. That is not surprising and fits the evidence Jon Matt (one of my graduate students) found when he looked at trends in Governance for his independent study paper.
The BBC reminds us that globalization is not an immediate win for all. There are growing pains. While the long term prognosis is good, those who are losing out as the markets do deserve help and sympathy, BUT should not halt free trade!
The World Bank (while mired in political problems) did find time to report that the Carbon Market is booming. From TreeHugger: "According the new World Bank Report, just out:- "The carbon market grew in value to an estimated US$30 billion in 2006 " which is about 300% the size of it in 2005. This is good news as it creates incentives for firms to cut carbon emissions.
John Bogle recently appeared on Consuelo Mack's Wealth Track (26 minute video) I find Bogle interesting every time I hear him. Definitely recommended. Here is talks about the lower returns we should expect in the future. (Very similar to his Fall 2006 presentation in Rochester).
Super Bowl, World Series, World Cup? World table tennis championship (if there is such an animal)? Nope. the America's Cup is the most valuable championship to host.
Prepay mortgage or save more? This is always an important question facing homeowners and the Washington Post tries to shed some light on the answer.
Inside the BonaBubble:
BonaResponds did not go to Kansas after all. We were all ready to go and got a call saying that they really did not need our help, so we waited. We will be ready next time! BTW this is open to everyone, alumni, students, staff, or just readers of the FinanceProfessor blog! ;) If you want to go help in Mississippi or Louisiana contact us! BonaResponds@sbu.edu
Construction has begun on the library addition. and of course La Verna the new coffee house has opened!
The trail through the soon to be names Bob's Woods (to the East of Campus) is almost done. It was started as part of BonaResponds' spring local service day and we've been back working on it about 4-5 times since. It is going to be great. The official grand opening will be this fall, but if you are in the area, check it out now!
I sprained my ankle yesterday so I getting my full of ice, elevation, and aspirin. Fortunately it is not that bad but sure scared me when it happened!
Oh yeah, the Baseball team is in the A-10 playoffs! Three of their players are in my classes, so if you are reading this, GOOD LUCK!!
Ok, I will go do some regressions now...lol...