Should Stocks Trade in Increments of $.0001?

johnleemk · 2012-05-25T16:15:22.753498+00:00

These quotas are Individual Transferable Quotas (ITQs) -- this term is mentioned but not well-defined in the article. They are individual, not communal (i.e. each licensee owns a share of the catch in their own right, separate from any industry-wide quota), and they are transferable, which is a key property right.

Unlike traditional licences, ITQs can be sold or transferred, much like pollution permits under a cap-and-trade regime. Consequently, the licence in of itself is valuable, and the value is directly tied to the sustainability of the catch. The right to sell your licence in the future encourages current licence owners to think sustainably about their fishing practices and trade-off the current value of catching more fish versus the future value of having more fish for the future licence owner to catch.

johnleemk · 2012-05-25T16:13:54.272432+00:00

The key part which dagMan didn't mention is that these quotas are Individual Transferable Quotas (ITQs) -- this term is mentioned but not well-defined in the article. They are individual, not communal (i.e. each licensee owns a share of the catch in their own right, separate from any industry-wide quota), and they are transferable, which is a key property right.

Unlike traditional licences, ITQs can be sold or transferred, much like pollution permits under a cap-and-trade regime. Consequently, the licence in of itself is valuable, and the value is directly tied to the sustainability of the catch. The right to sell your licence in the future encourages current licence owners to think sustainably about their fishing practices and trade-off the current value of catching more fish versus the future value of having more fish for the future licence owner to catch.

johnleemk · 2012-05-25T16:11:26.346605+00:00

Unlike traditional licences, ITQs can be sold or transferred, much like pollution permits under a cap-and-trade regime. Consequently, the licence in of itself is valuable, and the value is directly tied to the sustainability of the catch. The right to sell your licence in the future encourages current licence owners to think sustainably about their fishing practices and trade-off the current value of catching more fish versus the future value of having more fish for the future licence owner to catch.

foggybottom · 2012-05-25T04:21:47.030752+00:00

It has a reputation for very boxy fits, and certainly their jackets which I've tried on have not been slim-fitting in the least.

foggybottom · 2012-05-25T03:13:35.116609+00:00

Depends on how much time you have (thrifting takes time), how picky you are about fit, and what kind of look you're going for. If you don't mind more boxy sack suits, Jos A. Bank might actually work for you. If you're more picky about fit, your only low-cost way out will be to thrift -- but it will take a lot of time and effort to find suits with a cut and fit that you like.

uplift17 · 2012-05-24T20:05:05.257798-07:00

Wouldn't the use of a presidential system be the effect of an essentially authoritarian political class, rather than the cause?

Not sure if one should say that is more true in notable presidential countries like the US and France than it is in notable parliamentary countries like the UK.

But as I said, this is why it's one thing to answer the question of whether a correlation exists (though even this is fuzzy, given how one defines various terms) -- it's yet another to explain which way, if any, causation runs.

Chinese_redditor · 1 day

Not too sure on the cultural reasons, but for your question #3, the West Lothian Question arises because the British Parliament has full freedom to legislate on English law and policy; there is no separate English Parliament. In the US, this would be akin to Congress being able to make state law for ~2/3rds of the country, with this 2/3rds lacking any state legislative body.

The obvious solution to the West Lothian Question in principle is for there to be an English Parliament. But the reason why there isn't such an English Parliament...that's not so clear/easy to explain, beyond the tl;dr of "politics".

One thing you don't seem to have mentioned is linguistic differences. Scots, Welsh and Irish/Gaelic are distinct languages from English. Beyond that, English policy was also fairly repressive toward Wales, Scotland and Ireland (Ireland especially and most recently) historically. These have obviously contributed to a greater sense of identity separate from the British state, although how far they've contributed, I can't say.

osamabindrinkin · 1 day

Naturally I agree, but I don't think historical research (defined as producing new knowledge about history) is necessary to developing those skills. A lot of the same learnings come just from knowing a bit about history, developing hypotheses based on what you already know, and reading more (whether it's primary or secondary material) to confirm or disprove those hypotheses.

When one says research in the context of history, I think of trying to add to the body of existing knowledge, which though in of itself highly educational, isn't fully necessary to get the main benefits of a historian's education. Building the mental muscle to think critically can be done just by "researching" in the body of existing knowledge, because so much of existing historical knowledge is not widely known.

In other words, I think musschrott's points #1 and #2 are an extension of my point #1, and his point #3 is an extension of my point #2. IMO the benefits of a historical education aren't so much that you're forced to write papers (writing a paper in of itself is beneficial, but it's a sufficient, not a necessary condition IMO), but that you're forced to engage with other scholars of the same materials you've been studying; this engagement need not be through conventional academic papers.

uplift17 · 1 day

This question is extremely broad so I don't know how good an answer you'll be able to get for this. In the first place how does one define the term "democratisation"? Do you just mean that parliamentary polities tend to be more observably democratic in the liberal democratic sense compared to presidential polities?

Even assuming the correlation holds true (my prima facie impression would be yes, parliamentary systems seem to be more historically democratic than presidential systems), it would be very, very difficult to answer the next bit -- why. You could write several books offering several different explanations and still not come close to exhausting the possible range of answers.

But anyway, probably the tl;dr answer to your question is in Wikipedia: http://en.wikipedia.org/wiki/Parliamentary_system

Some scholars like Juan Linz, Fred Riggs, Bruce Ackerman, and Robert Dahl claim that parliamentarianism is less prone to authoritarian collapse. These scholars point out that since World War II, two-thirds of Third World countries establishing parliamentary governments successfully made the transition to democracy. By contrast, no Third World presidential system successfully made the transition to democracy without experiencing coups and other constitutional breakdowns.[citation needed]

Note these scholars tend to be political scientists or sociologists so you should also try to find some answers in those fields.

schueaj · 1 day

The argument tends to hinge on some idea of East Asian cultures being more entrepreneurial (or alternatively, collectivist) or otherwise having traits that make them more amenable to modern development (e.g. a long history of state-centred bureaucracy in China, etc.). Southeast Asian cultures on the other hand have been mostly agricultural, although there were certainly some mercantile empires or states that are often forgotten about when these arguments are made.

I don't know how much currency these arguments have in modern historical scholarship -- little, I would suspect -- but the East Asian exceptionalism argument often finds its way into the press and other pop journalistic outlets, both in the West and in Asia. In Malaysia, PM Mahathir in the 1980s quite openly exhorted Malaysians to model economic society and culture on that of the Japanese.

Aurevir · 1 day

I found the Copperhead (Northern Democrat) slogan, "To maintain the Constitution as it is, and to restore the Union as it was", which is pretty damn similar. Maybe this is a derivative?

Possibly. I've heard this phrase ("...the Union as it was, and the slaves where they were") before but can't remember where. Possibly stems from Republican/Unionist rhetoric lambasting the Copperheads.

johnleemk · 1 day

So the policy response is to lower interest and do QE to increase liquidity. But banks aren't lending more, consumers continue to deleverage. Either consumers don't want those good/services that are idle or banks can't find credit worthy people to loan to, right?

You're confusing money and credit. Easy money does not require more lending. Money has quite clearly been too tight in any event.

So how does the fed you create easy money? and how does easy money translate into real growth once easy money is taken away?

The money illusion leads to sticky wages which artificially force people out of work and drive down AD. The role of keeping the price level growing is to ensure real wages can adjust appropriately to any shocks; when wages do not adjust properly, you get weak AD.

The only reason really easy money is needed now is to correct for the Fed's failure in keeping money too tight, and catch nominal income back up to where it would have been if the Fed had kept nominal income at trend through the crisis. Once the failure has been corrected, the Fed can easily cut back to an appropriate inflation rate.

johnleemk · 1 day

do you have a reference for further reading on the statement that 70's stagflation was supply side phenomenon?

http://en.wikipedia.org/wiki/Stagflation

I guess my argument comes down to I am very suspicious that the economy recovers (real growth that is independent of easy credit) first and then the inflation kicks in. If it doesn't happen in that order, then the Fed has no exit strategy.

Why not? If loose money isn't creating real growth, the Fed isn't obligated to continue trying loose money. The problem with the status quo is that loose money hasn't even been properly tried. In spite of the Fed's actions, 2009 saw the lowest inflation rates, hitting deflationary territory, in recent US history. Current inflation rates are still on the low to low-medium end by historical standards, and nowhere near hyperinflationary territory.

And all this boils down to "real growth is impaired due to lack of easy credit / AD problems" which I am very skeptical of. I don't think the issues impairing growth are that simple and neat.

It's not lack of easy credit, it's lack of easy money. And the simple fact that money has been too tight means AD has been artificially impaired by monetary policy; even if you believe there are AS problems, that hardly precludes AD problems as well.

schueaj · 1 day

How absolute was the Philippines independence though? Did the people really want the US there or was it American money buying Philippines' leaders consent?

I'm half-Filipino and although Filipinos take pride in their independence (Aguinaldo remains a national hero and the officially recognised first president of the Philippines, because of his struggle against American conquest), there's genuine affection for the US. (Some Filipinos even wish they'd become a US state instead.) I'm not aware of any significant anti-American sentiment in the Philippines, even though the US propped up Marcos's hated regime.

My understanding of the historical consensus on the subject is that although Filipino leaders were subservient to US policy prior to official independence in the late 1940s -- the self-government of 1934 being something of a sham -- there's no good reason to think it was a puppet state from then onwards. It was certainly just as independent as the Diem regime was in South Vietnam (which contrary to the apparently common belief, was not much of a puppet state either).

johnleemk · 1 day

Once the economy has recovered and inflation is running away, there is no need to worry about hiking rates/destroying money.

Comparisons to stagflation as far as recovery goes are inappropriate because stagflation was primarily a supply-side phenomenon while the current crisis is mostly demand-side.

schueaj · 1 day

It's a loose grouping, don't take these labels for anything rigid, but here you go: http://en.wikipedia.org/wiki/Southeast_Asia and http://en.wikipedia.org/wiki/East_Asia

Malaysia has a significant Chinese minority so some might attribute its relative success to that. Others might argue that the maintenance of British common law institutions (even though they've become corrupted somewhat since independence) is the main factor. Both the institutional and ethno-cultural explanations are also consistent with Singapore's outperforming Malaysia economically.

johnleemk · 1 day

If one is judging monetary policy by the inflation rate, it's emphatically clear that it is not too loose, and that it was in fact far too tight during the worst of the crisis: http://inflationdata.com/inflation/inflation_rate/currentinflation.asp

If one judges monetary policy by nominal income, a similar picture emerges: http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&ctype=l&strail=false&bcs=d&nselm=h&met_y=ny_gdp_mktp_cd&scale_y=lin&ind_y=false&rdim=region&idim=country:USA&ifdim=region&tstart=959140800000&tend=1274673600000&hl=en&dl=en&ind=false&q=nominal+gdp+in+the+us

Likewise, the GDP deflator has been below trend since 2008: http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&ctype=l&strail=false&bcs=d&nselm=h&met_y=ne_dab_defl_zs&scale_y=lin&ind_y=false&rdim=region&idim=country:USA&ifdim=region&tstart=959140800000&tend=1274673600000&hl=en&dl=en&ind=false&q=nominal+gdp+in+the+us

People squawking about hyperinflation don't seem to realise that even by the CPI, the current US inflation rate is over 3x, even 4x lower than the worst of the stagflationary era, which one cannot describe as hyperinflation by any stretch of the imagination. US money is certainly not extraordinarily loose.

schueaj · 1 day

Well it's not like all was hunky dory in Korea pre-WWII either. Korea was a colony of Japan for a similar amount of time as the Philippines was a colony of the US.

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