Wednesday, September 16, 2009

Introduction: The Meta Finance Blog

Welcome to the Meta Finance Blog. As the name suggests, this is a blog about what lies beneath the edifice of modern finance. In this blog, instead of addressing the what and how, or even the when and how much, I will focus on the why of financial markets.

The bedrock of any study of finance has to be individual transactions (‘trades’), which suggests the first ‘why’:

Why are certain traders / trades / trading styles more successful than others?

Under this heading I will talk about competing trading philosophies; the design and analysis of trading strategies; various sources of trading returns; the concept of premium capture (especially risk premium); the measurement of trading performance; arbitrage, its implications and its limitations; modeling and meta-modeling; market-making and price-taking; risk management schemes; and so on.

Of course, traders don’t operate in a vacuum; they are typically funded by (and hence beholden to) institutions. This brings us to the second ‘why’:

Why do institutions look the way they do?

Under this heading I will talk about institutional structures and how they have evolved; Red-Queen patterns and races to the bottom; principal-agent issues; incentive schemes and their consequences; regulatory and jurisdictional arbitrage; politics and voting models; and so on.

I will also talk a great deal about institutional relationships: the relationships between Wall Street and Main Street; between regulators and the regulated; between investors and asset managers; between price-takers and market-makers; and so on.

The complex interactions between various institutions (mediated by individual traders, risk managers, brokers, regulators, investors and others) give rise to the glorious mess that we call the market. So, our third ‘why’:

Why do markets behave the way they do?

Under this heading I will talk about the efficient markets hypothesis and its many subtleties; game theory; expectations; positive and negative feedback; stable and unstable equilibria; regime changes and structural breaks; correlations, distributions and extreme events; and so on.

I will also have plenty to say about behavioral finance; the limits of rationality; and the importance of incentives and psychology in determining market behavior.

Markets are the barometer of the economy, hence our fourth ‘why’:

Why do economies behave the way they do?

Under this heading I will talk mainly about the interplay of micro and macro economics: specifically, the micro foundations of macro moves, and the macro currents driving micro behavior. As above, questions of incentives and psychology will dominate.

I will also discuss, but only in passing, some of the usual macro suspects: growth, inflation and unemployment; exchange and interest rates; monetary and fiscal policy; Keynesian, neoclassical and monetarist models; stickiness, rational expectations, time-consistency; positive and negative shocks; and so on.

This introductory post would not be complete without one last ‘why’:

Why are you writing this blog?

I find markets endlessly fascinating. Unfortunately, I cannot say the same for the vast majority of market commentary. Much of the analysis I encounter tends to be superficial, ephemeral or just plain uninteresting; this is because most analysis concerns itself with mere details, without investigating the ‘deep structure’ underlying financial markets. It is this deep structure that dictates why those details should be the way they are, and it is this deep structure that I propose to investigate in this blog.

Happy Reading!

121 comments:

  1. I really like this blog post, it has some great info. Thank you and keep up good work.

    entry level finance.

    ReplyDelete
  2. Unless you operate a day care center, your home office space must be exclusively used for business. Your kitchen will not qualify as home office space simply because you use the table to complete paperwork. If you use the space for personal and business, it does not qualify.

    Payday loans

    ReplyDelete
  3. Excellent content - as you always provide and inspires me to come again and again.

    ReplyDelete
  4. thanks for share your blog,its very informative.mis sold ppi

    ReplyDelete
  5. I think this is the best blog I have been through all this day.
    rapidadvance

    ReplyDelete
  6. I would be appreciating all of your articles and blogs because they are fitting up mark.
    www.ppireclaimuk.com

    ReplyDelete
  7. The quality of information that you are providing is simply marvelous. best ppc management service

    ReplyDelete
  8. I like all details that you provide in your articles.
    learn more

    ReplyDelete
  9. Your contents force out your readers for commenting.phlebotomy training course

    ReplyDelete
  10. Keep it up; keep posting more n more n more.
    gold ira investing

    ReplyDelete
  11. Your contents force out your readers for commenting.
    life insurance quotes

    ReplyDelete
  12. I’m flattened for your blogs writings and blogs as well.
    Angelita Larkin

    ReplyDelete
  13. I am very thankful to all your team for sharing such inspirational information.
    advances in computer technology

    ReplyDelete
  14. Your articles are really fit authorized and incomparable.
    Relationship Tips by Herbal Bath

    ReplyDelete
  15. Your work is totally appreciative and informative. Yu Eyut Ex Tips And Tricks

    ReplyDelete
  16. Your thing is shows latent, m gona add this to my bookmarks. Go to Onks Design

    ReplyDelete
  17. Your listing are progressing with days dungeon it up guys. Learn More About Onks Design

    ReplyDelete
  18. Hi buddies, it is great written piece entirely defined, continue the good work constantly.
    Learn More About Herbal Tips

    ReplyDelete
  19. You make sense out of the most complex topics.
    Glaa Advice

    ReplyDelete
  20. Great details here, better yet to discover out your blog which is fantastic. Nicely done!!!
    Tips by Distributioned

    ReplyDelete
  21. You have shared the best blog. This is what I really need immediately. Relationships by Ai Worlds

    ReplyDelete
  22. I will prefer this blog because it has much more informative stuff.Tips by Economy Fence

    ReplyDelete
  23. I even have been getting a lot of helpful and informative material in your web site.Click Hnn X size Link

    ReplyDelete
  24. Your contents are moving ahead with days persevere guys.

    instant payday loans

    ReplyDelete
  25. Hi, Good blog with new information. I would like to share about the site http://www.businessfinancecorporation.com, which is useful for business finance members.

    ReplyDelete
  26. I absolutely respect and appreciate your point on each and every object.

    payday loans online same day

    ReplyDelete
  27. I feel pleasure to read the content that you are posting.
    online payday loans direct lenders

    ReplyDelete
  28. The quality of your blogs and articles and worth appreciating.
    payday loans online no credit check

    ReplyDelete
  29. This short article posted only at the web site is truly good.
    online payday loan lenders

    ReplyDelete
  30. Awesome blog! Now In anticipation of a follow-up ….
    Get more info about T2 Studio HK

    ReplyDelete
  31. Each time I used to always check blog posts within the first hours in the break of day, because I like to get information increasingly more. continued

    ReplyDelete
  32. I was getting bore since morning but as soon as I got this link & reached at this blog, I turned into fresh and also joyful too.
    Visit Vuln DB

    ReplyDelete
  33. Hey buddies, such a marvelous blog you have made I’m surprised to read such informative stuff. Welcome to Radio SC

    ReplyDelete
  34. This blog is down to earth, hats off buds available.
    Read More about Forum Barcelos

    ReplyDelete
  35. Your blogs and its stuff are so notable and worthwhile it can make me return.
    PushButtonfor.org - How to file bankruptcy

    ReplyDelete
  36. I continuously keep on coming to your site again just in case you have posted new contents.
    ppi reclaim

    ReplyDelete
  37. I love this blog because it is user friendly with appreciative information.
    car accident claim

    ReplyDelete
  38. Hi, having read this awesome written piece I’m also pleased to fairly share my familiarity here with colleagues. ppi reclaim

    ReplyDelete
  39. I sent your articles links to all my contacts and they all adore it including me. payday loans online

    ReplyDelete
  40. I never ever read such type of info before this was really incredible.
    secured loans

    ReplyDelete
  41. And yet the World Bank finds that investment in Africa alone falls short of the level required by $48 billion a year. PPI

    ReplyDelete
  42. Great blogs buddy……… this will definitely assist me.

    genital warts treatment

    ReplyDelete
  43. Your articles don’t beat around the bushes exact t to the point.
    Click Saigonn Hon Long Link

    ReplyDelete
  44. I'd like to take the power of thanking you for that specialized guidance I've constantly enjoyed viewing your blog. http://www.ppirefundscompany.co.uk

    ReplyDelete
  45. Pretty remarkable post. I simply came across your blog and desired to say that I have really enjoyed searching your blog posts. cheap auto insurance

    ReplyDelete
  46. I absolutely feel ecstatic when I find articles relevant to my work and my subject. Ipswich Accountant

    ReplyDelete
  47. Your content is shows potential, m gona add this to my bookmarks. Gi Mongolia Website

    ReplyDelete
  48. I would be pleased if all WebPages provided such articles. |Welcome to Corap ANP

    ReplyDelete
  49. Your blogs and every separate material are so remarkable and lucrative it makes me come back most again. Relationship with Rural Turis

    ReplyDelete
  50. I really like this enthusiastic job you are doing folks. Relationship Tips by Screenplay Analysis Workbook

    ReplyDelete
  51. I would surely give 10 on 10 for such incredible content. Auto insurance rate

    ReplyDelete
  52. Your work is totally appreciative and informative.
    ppi compensation claims

    ReplyDelete
  53. Your blogs and accumulation attracts me to arrive rearward again n again.
    mis sold ppi

    ReplyDelete
  54. An enormous round of applause, continue the great work. Welcome to We Fix Wordpress Blogs

    ReplyDelete
  55. Marvelous work pals, I love reading your articles.
    Fit For Fundraising Relationship Tips

    ReplyDelete
  56. Hurrah, that’s what I was trying to get for, just what a stuff Presented at this blog!! Thanks admin of the site. Welcome to Foster and LLoyd

    ReplyDelete
  57. I don’t think many of websites provide this type of information.
    Relationship Issues With Ex Gay Books

    ReplyDelete
  58. I envisage feeling to have the increase that your knowledge.
    Relationships by SDJN 16Z

    ReplyDelete
  59. I believe this is actually the most useful blog I've been through this entire day. Welcome to Daniel Puig

    ReplyDelete
  60. I enjoy to translate and revalue your transmute.
    Relationship Tips by BHC Health Coalition

    ReplyDelete
  61. I feel really finicky reading these articles I mean there are writers that can write reasonable stuff.
    Read More about Forum E-Democratie

    ReplyDelete
  62. You certainly deserve a round of applause for your post and more specifically, your blog in general. Very high quality material.
    healthcare claims adjudication

    ReplyDelete
  63. I think this is the best blog I have been through all this day. Welcome to CAD Cam Corner

    ReplyDelete
  64. The quality of your articles and contents is great. Welcome to Wachovia FTU

    ReplyDelete
  65. The quality of your blogs and articles and worth appreciating. Welcome to Canones Caza

    ReplyDelete
  66. Your articles make complete sense out of each topic. Welcome to Unit PR

    ReplyDelete
  67. This blog Info is fabulous; I must wanna see best more from your writers.root Samsung Galaxy S4 for free

    ReplyDelete
  68. Wasp dudes! Amazing stuff continues the good work.
    auto insurance

    ReplyDelete
  69. Wow, awesome blog, thanks for the article.comment pirater un compte facebook

    ReplyDelete
  70. This blog Info is fabulous; I must wanna see best more from your writers.
    pirater un compte facebook

    ReplyDelete
  71. Pretty! It was really a wonderful blog. Thanks for the provided information. automobile insurance quotes

    ReplyDelete
  72. While the admin of the web site is working, no question soon it will likely be famous, due to its feature blogs. automobile insurance quotes

    ReplyDelete
  73. Every day I visit a number of blog sites to see content, however this offers quality based content. android apps free

    ReplyDelete
  74. Pretty! It was really a wonderful blog. Thanks for the provided information. employee productivity

    ReplyDelete
  75. Keep the balls rolling!! Nice posts you have given for us.
    infographic

    ReplyDelete
  76. The blog is good enough, keep up writing such type of posts.
    infographic design

    ReplyDelete
  77. You have an effect on is totally appreciative and full of interest.
    good infographics

    ReplyDelete
  78. Great blogs buddy……… this will definitely assist me.good infographics

    ReplyDelete
  79. congratulations guys, quality information you have given!!! good infographics

    ReplyDelete
  80. Pretty remarkable post. I simply came across your blog and desired to say that I have really enjoyed searching your blog posts. infographic design

    ReplyDelete
  81. Whether somebody pursuit of his vital thing, hence he or she desires to be accessible that at length, hence that thing is maintained over here. social media infographics

    ReplyDelete
  82. You people have actually provided the best blogs that are easy to understand for the folks.automobile insurance for used cars

    ReplyDelete
  83. Hi Dear, have you been certainly visiting this site daily, if that's the case you then will certainly get good knowledge. good infographics

    ReplyDelete
  84. I'm also visiting this site regularly, this web site is really nice and the users are genuinely sharing good thoughts. infographic

    ReplyDelete
  85. I went over this website and I conceive you've got a large number of splendid information, infographic

    ReplyDelete
  86. The stuff written in the blogs have allured me!!! car insurance

    ReplyDelete
  87. I want more and more articles and blogs please post soon such informative information. car insurance

    ReplyDelete
  88. I'd like to take the power of thanking you for that specialized guidance I've constantly enjoyed viewing your blog. car insurance

    ReplyDelete
  89. I truly get pleasure from while I read your blogs and its content.
    makulator

    ReplyDelete
  90. I really love your write-ups guys continue the good work.car insurance rates

    ReplyDelete
  91. Waooow!!! Magnificent blogs, this is what I wanted to search. Thanks buddy
    click here

    ReplyDelete
  92. It’s a classic great for me to go to this blog site, it offers helpful suggestions chemesis

    ReplyDelete
  93. An unbelievable blog. This blog will indisputably be definitely recommended to my friends as well. comment pirater un compte facebook

    ReplyDelete
  94. Nicest information!!! I'll be enchanted to greatly help due to what I've learnt from here. hacker un compte facebook

    ReplyDelete
  95. Whether somebody pursuit of his vital thing, hence he or she desires to be accessible that at length, hence that thing is maintained over here.

    ReplyDelete
  96. Congratulations guys, quality information you have given!!! sky blue credit repair reviews

    ReplyDelete
  97. It’s hard to find knowledgeable people on this topic, but you sound like you know what you’re talking about! bubblegum casting

    ReplyDelete
  98. I want more and more articles and blogs please post soon such informative information.
    Nephrologist Specialization

    ReplyDelete
  99. Your site is for sure worth bookmarking. vietnam travel

    ReplyDelete
  100. Your blogs are easily accessible and quite enlightening so keep doing the amazing work guys.
    anonymous vpn

    ReplyDelete
  101. Your blogs are truly awesome I have no words to praise for your blogs.vietnam travel

    ReplyDelete
  102. Amazing blogs you have guys!! Keeps the ball rolling…..vietnam tour

    ReplyDelete
  103. Really amazing blog, I’d love to discover some extra information.vietnam holiday

    ReplyDelete
  104. No wonder why you receive countless of feedbacks.Villas marrakech

    ReplyDelete
  105. This blog is truly awesome in all aspects. http://homessecuritysystemsreviews.page.tl/The-True-about-the-Home-Security-Systems-Reviews-.htm

    ReplyDelete
  106. I wonder why other professionals don’t notice your website much m glad I found this. adt security reviews

    ReplyDelete
  107. An immense moonlike of commendation, reserve it up. best remington electric shavers

    ReplyDelete
  108. I like all details that you provide in your articles. blog post service

    ReplyDelete
  109. I love to read and appreciate your work. free password manager

    ReplyDelete
  110. great tips to enhance the finance. I will surely use these tips and enhance my finance to get Umrah Packages 2019 for me and my family

    ReplyDelete