BICs Vs. The Tobin Tax

I write this article as a commentary on Paul Krugman's support of a Tobin tax on all financial transactions.

It has gained steam lately after being picked up by British leaders including the top financial regulators and the prime minister as the Turner-Brown proposal. When French President Chirac would say this a few years ago, everybody laughed at him....

I think putting incentives that may or may not be short of a tax aimed at directing hedging and speculative activities on securitizing BICs that mirror the value of target underlyings without having an effect on them is the farsighted and most effective proposal that still stimulates rather than slow down economic activity.

in reference to:

"Turner-Brown"
- Op-Ed Columnist - Taxing the Speculators - NYTimes.com (view on Google Sidewiki)

Damned Yankees -Republican/Democrat President

This thought of Republican Vs. Democrats having an impact on NYY winning odds crossed my mind but I did not have the extensive background of Mr. Fleisher on the observation. It is easy to add such an insight in the pricing of NYY odds of winning the series as an additional factor in assessing odds of winning individual games using the BICs framework.

The interested reader is invited to look at the Wolfram demonstration (http://demonstrations.wolfram.com/BasisInstrumentsContractsBICsInBaseballWorldSeriesOdds/)and build their own demo incorporating that factor

in reference to:

"Damned Yankees"
- Op-Ed Contributor - Damned Yankees - NYTimes.com (view on Google Sidewiki)

New York Yankees World Series Triumph!

As a tribute to fellow New Yorkers, to Baseball and World Series fans the world over, I do dedicate my new Wolfram Demonstration on Baseball & BICs.


To the New York Yankees!



To a magnificent victory!

The Reach for a new paradigm: BICs

The new paradigm is to be found in a widening of the concept of probability to mind trading, hedging and risk management issues. The traditional probabilistic framework by failing to account for risk and uncertainty, perpetuates dangerous expectations based fallacies. BICs (http://tinyurl.com/cyxhpa) theory are already a comprehensive theory to help effectively navigate these issues. See:http://www.theinvestmentprofessional.com/vol_2_no_3/abstract-bics.html

in reference to:

"Economist Profiles In the wake of the worst financial crisis since the Great Depression, economists are racing to provide policy makers with the tools they need to avert a repeat -- a process that some believe could require a revolution in economic thought. In doing so, they are building on the work of colleagues who saw early on the dangers presented by an unstable financial sector. Here are some of the people who did the early work, and who are now using it to build new models of the economy."
- Crisis Compels Economists To Reach for New Paradigm - WSJ.com (view on Google Sidewiki)