How Globalization Went Pop

Global trade is old — really, really old. But something new is happening to the world economy as software and container trade shrink the globe — the rate of “globalization” is increasing, allowing developing countries to hitch a ride on the capital of advanced economies and race forward.

But how do you measure how fast the world economy has “globalized” in one figure? Perhaps, by borrowing a concept originally developed by physicists known as entropy.

The Mystery of the Incredible Shrinking American Worker

The mysterious and growing divide between the rich and the rest in just about every wealthy country on Earth, including the U.S., is really two mysteries wrapped in one. The first mystery is why real wage growth has sped up at the top and slowed down for everybody else. But the second, more recent, and more fascinating problem is why labor’s share of the winnings in developed economies has been in decline. It’s not just that middle-class wages are falling behind the rich. Overall wages are falling behind something else — capital.

People are becoming less valuable to companies. Why?

Continue reading on The Atlantic…

Kalle’s Kultur

Folks,

I’ve started a culture blog called Kalle’s Kultur. As much as I love Derivative Dribble, I have a lot of interests outside of finance, and this project will give me the opportunity to more fully explore these interests and share them with others. I hope you enjoy it!

Best,

Charles a.k.a. Kalle

Your Guide to the National Debt

All,

I’ve written my first piece in a very long time, this time on the National Debt. I’ve put quite a bit of work into it, and I’d appreciate your thoughts.

Best,

Charles

The Fearful Rise of Markets

All,

Gregory White of the Business Insider has done a fine job with this interview of John Authers, discussing Authers’ new book, The Fearful rise of Markets, and the impact of moral hazard on the financial markets.

Regards,

Charles

Securitization Conference in Mumbai

I will be leading a two day conference on securitization taking place on July 29th and 30th in Mumbai, India. The conference will cover a broad range of topics related to securitization, and do so from a global perspective, but will close with a panel discussion on the future of securitization in India.

Those interested in attending should contact Vikram Singh of Astute Forums:

Vikram Singh

Director – Business Development

email: vikrams@astuteforums.com

H/P: 91 9820188518

Astute Forums

www.astuteforums.com

(A Division of NLinks Marketing Promotional Services Pvt. Ltd.)

Office No: 2/014, Om Herra Panna Mall I Link Road I Oshiwara I Andheri – West I Mumbai – 400053 I

Board Line: 022 42365959 I Direct: 022 42365912 I Fax: 022 42365999

Serious Coverage on High Frequency Trading

Jeremy Grant, editor of the FT’s Trading Room, has put together a great interview with Hirander Misra, co-founder of Algo Technologies.

Jeremy’s work on HFT is the best I’m aware of in the mainstream media, so again, I recommend you follow his work. Jeremy tends to interview people who actually work in the industry,  so the interviews are generally incisive and concrete.

Regards,

Charles

High Frequency Trading

All,

Jeremy Grant of the FT has put together a fantastic article on algorithmic and high frequency trading. Unlike all the hype and nonsense floating around on the subject, Jeremy’s article is a refreshingly in-depth, yet approachable piece. I highly recommend you take the time to read it.

Regards,

Charles

Happy Holidays

I’ve been working on a few things that have kept me from blogging, but I will be posting an article soon on the epistemological lessons of 20th century mathematics that every economist should know.

Hope you and yours have a happy holiday weekend.

Regards,

Charles

FT Trading Room

All,

Jeremy Grant of the Financial Times has been doing a great job reporting on some of the most poorly understood corners of finance, including OTC Derivatives and High Frequency Trading. The material is assembled on his micro site, the FT Trading Room.

Perhaps the most unique aspect of, and in my opinion the most valuable resource in, the FT Trading Room is the collection of video interviews Jeremy has conducted with industry practitioners, which is available here. These interviews offer a rare and often candid industry perspective on some of the most contentious areas of finance. I encourage all of you to make the FT Trading Room part of your daily reading.

Regards,

Charles