EconoFiction

A CasP Model of the Stock Market

22 Okt , 2020  

Most explanations of stock market booms and busts are based on contrasting the underlying ‘fundamental’ logic of the economy with the exogenous, non-economic factors that presumably distort it. Our paper offers a radically different model, examining the stock market not from the mechanical viewpoint of a distorted economy, but from ...

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EconoFiction

The Nordhaus Racket: How to use capitalization to minimize the cost of climate change and win a ‘Nobel’ for ‘sustainable growth’

28 Nov , 2018  

The LA Times called the bluff: William D. Nordhaus won the Nobel prize in economics for a climate model that minimized the cost of rising global temperatures and undermined the need for urgent action.

‘The economics Nobel went to a guy who enabled climate change denial and delay’:

It has ...

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EconoFiction

With their back to the future: will past earnings trigger the next crisis?

22 Sep , 2018  

As these lines are being written (April 2018), the U.S. stock market is again in turmoil. After a two year bull run in which share prices soared by nearly 50 per cent, the market is suddenly dropping. Since the beginning of 2018, it lost nearly 10 per cent of its
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EconoFiction

The CasP Project: Past, Present, Future

30 Apr , 2018  

The capitalization ritual consists of discounting riskadjusted expected futur e earnings to their present value. The  reduction involves fourelementary particles: (1) future earnings, (2) investors’ hype regarding these earnings, ( 3) risk perceptions associated with earnings  estimates and (4) the normal rate of return. When measured differentially, each elementary particle ...

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