Financial Markets

While Modern Portfolio Theory (MPT) is popular in academic economics and finance, it fails to properly explain profits, mistakenly confusing entrepreneurial profit seeking with risk management.

While Modern Portfolio Theory (MPT) is popular in academic economics and finance, it fails to properly explain profits, mistakenly confusing entrepreneurial profit seeking with risk management.

Policy-made rates reshape everything: mortgages, bonds, stocks, and commodities.

In this special mid-week episode of Minor Issues, Mark Thornton joins The Julia LaRoche Show.

This week, Bob walks through two related debates: Hoppe’s criticism of Argentina's President Milei for not immediately closing Argentina’s central bank, and the follow-up exchange between Guido Hülsmann and Philipp Bagus over dollarization and the peso.

The “K-shape” isn’t a mystery. As Mark Thornton explains, it’s Cantillon effects from cheap money and Leviathan.

In a special midweek episode of the Minor Issues podcast, Mark Thornton appears on Palisades Gold Radio with Stijn Schmitz.

Politicians and central bankers invoke "contagion" to demand more power and money, while their interventions cause the very fragility they decry.

50-year mortgages are likely to increase the likelihood of more "owners" becoming underwater and walking away from their mortgages. This will lead to more bailouts for the financial sector. Taxpayers will pay the price. 

In finance, memories are short. The mortgage industry makes out with 50-year paper, the consumer, not so much.