Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Steven Levitt and Stephen J. Dubner. Lesson 1: Three kinds of incentives dominate your life. 1. economic 2. social 3 moral For example, the disincentive, or negative incentive, to commit a crime is that 1. you lose your job economically, lose your friends and reputation socially, and … Continue reading Freakeconomics
Category: Economy
China Notes
cashless society huge infrastructure investment of railroad sharing economy Sharing Economy platform required: YES C2C light assets - only platform is required Uber and Airbnb Rental Economy platform required: NO B2C heavy assets - increases costs, such as hotel sharing phone charger and bikes A distinctive difference between sharing and rental economy is that in … Continue reading China Notes
Tariffs vs Quotas
Tariffs and quotas are both imposed on import and export products by the government of a country. Tariffs, or customs duties, are taxes on imported products, usually in an ad valorem form, levied as a percentage increase on the price of the imported product. Impacts the government can raise tariff tax revenue domestic jobs will be protected … Continue reading Tariffs vs Quotas
Sharing Economy
Features: a platform, a supply, and a demand barter system exists because of the internet subject matters are usually personal assets platforms include Uber, Lyft, Airbnb, and Taskrabbit Pros: flexibility - workers are independent contractors - have their own control seamless payments the market is more competitive users and customers feedback regulate the business Cons: … Continue reading Sharing Economy
Foreign Exchange Rate
1 Dollar = 7 Yuan 1 Dollar = 8 Yuan means US dollars have more purchase power; more yuan and fewer dollar in the trading market; dollar price UP and yuan price DOWN; In China, the Yuan depreciates, and it requires more Yuan to buy a particular good, so more Chinese want to buy US … Continue reading Foreign Exchange Rate
Cashless Debate
Pros: Convenience - easier access and quick payment Boosting Economy - people tend to spend more and stores do not have to carry cash Reduction of "black economy" - transactions are transparent for crimes, drug money, tax evasion and undocumented work No more printing money Cons: Privacy and security - data are easier to track … Continue reading Cashless Debate
Stocks 101
Rule of 72 is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. It deals with compounding periods. For example, according to the rule of 72 at 10% annual interest rate, $1 would take 7.2 years to turn into $2. It is fairly accurate, … Continue reading Stocks 101
The Market of Lemons
The Market of Lemons is about how the quality of goods traded in a market can degrade in the presence of information asymmetry between buyers and sellers, leaving only "lemons" behind. In American slang, a lemon is a car that is found to be defective only after it has been bought. For example, in a used car market, all the sellers … Continue reading The Market of Lemons
How The Economic Machine Works by Ray Dalio
Introduction - In an economic transaction, money and credits are exchanged for goods, services, and financial assets. Unlike money, credit is often misunderstood and it can be created in thin air where words are exchanged. These transactions are driven by human nature and they create three main forces: productivity growth, short term debt cycle, and … Continue reading How The Economic Machine Works by Ray Dalio
Stock Trade Orders
Market order: to be executed immediately at current market prices Stop order: to be executed (turned to market order) once the price of the stock reaches a specified price Limited order: to be executed at a specific price or better *or may not be executed at all*
Benc Tan 