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Obama opposed the Iraq War, but now as Commander in Chief he has failed to get us out of that war. He has also got us into a completely new war in Libya. In any case, Presidents don't create the budget, Congress does. Anybody who thinks that either of the two major parties is fiscally...

You're confusing the drift component of the log price with the average rate of return of the price. They are different things. You start with mu as a free parameter, but after solving for the call and put prices the only value of mu consistent with put-call parity is mu = r - sigma^2/2 (this...

McCain is a half senile, war mongering RINO. I don't trust his judgment on anything. Remember than in 2006 Obama and all of the other senate Democrats voted against raising the debt ceiling. What we're seeing is pure political theater. Only Rand Paul has offered a bill that would actually...

One legitimate issue is that BS necessarily assumes that the underlying asset grows on average at the risk free rate. (This is enforced by put-call parity.) Of course futures pricing does the same thing -- the no arbitrage future price of a non-dividend paying stock is its current price times...

The assumption in option pricing is that the log price of the underlying is a random walk with a constant drift. In terms if the price, that means that you can have random motion around an exponential increase in price. In fact, put-call parity forces the underlying rate of growth to be the...

This is the silliest claim that I've seen. According to you, if a HF trader observes the price action and order flow, buys 20,000 shares of IBM at 180.15 and then two minutes later sells them for 180.18, for a profit of $600, that's stealing from investors. But if a day trader observes the...

I would prefer to be saved from the Democratic budget, although frankly I'm not impressed by what either party has proposed. I'd like to save intelligent life on the planet, and that doesn't include Nancy Pelosi.

I am not here to defend every practice of the HF traders. In an ideal world we would all see the same prices at the same time. In the real world, where it takes milliseconds for light to get from New York to California, there will be moments where a price is a penny higher in one place than in...

Most of the comments there would apply to any sort of trader, e.g.: <i> - There is no good reason these high volume, high speed traders should be allowed to continue to operate the way they do. They manipulate and distort the markets, taking profits away from regular investors while adding...

I read his commentary. He calls Obama a centrist. Krugman is a fool.

Krugman deserves his Nobel Prize like I deserve the NBA Most Valuable Player award. (Or like Barrack Obama deserves his Nobel Peace Prize.)

Time travel is easy. It's fast forward and reverse that are difficult.

If the average American does not want to to tell other nations what to do then in 2008 they would all have voted for Dennis Kucinich (if Democratic) or Ron Paul (if Republican). Both candidates are called "kooks" by our media masters and both got single digit percentages of the votes.

I don't doubt that manipulation at expiration sometimes occurs. (It can occur for RUT and other indexes as well.) But that is very different from what Nine Ender was suggesting -- that the VIX is kept artificially low day after day. That implies that MM are underpricing SPX options on a day...

Richard Cohen, CEO of the Southern Poverty Law Center, consults for the fusion centers. So is it any surprise that the DHS would make a video that looks like it came from the SPLC?

Sure, politicians can tax or borrow money and spend it and "create jobs" that way. But does that create any long term improvement in employment? Taxes come in large part from small business owners (those are the $80,00 to $300,000 a year guys that Democrats like to call "the rich"). The money...

There sure are a lot of paranoid people out there. How is anyone going to manipulate the VIX? It's based on thousands of option prices for hundreds of stocks. Are you saying that the option market makers are deliberately selling options cheap to keep the VIX down? If so, buy straddles all...

Politicians do not create jobs, whether they are Republicans or Democrats. Only children pay attention when politicians talk about creating jobs, as adults know better.

The health care bill is a disaster, so if the Republicans have blocked other Democratic schemes that can only be to the good. Have the Democrats gotten us out of those Middle Eastern wars? No, they have not. So on the only issue where the Democrats are supposed to be better than the...

Once the immigrants realize that they're required to live in the 'hood they'll stay in Bangladesh.