Wednesday, October 31, 2007
Monday, October 29, 2007
Friday, October 26, 2007
Freakonomics is an international bestseller where Steven Levitt and Stephen Dubner explore the hidden side of everything. In a lucid manner they explain how the incentives of the real estate business, for example, encourages the agents to act against the best interests of their customers!
Agents are often better informed than the clients who hire them and may exploit this informational advantage. Real-estate agents, who know much more about the housing market than the typical homeowner, are one example. Because real estate agents receive only a small share of the incremental profit when a house sells for a higher value, there is an incentive for them to convince their clients to sell their houses too cheaply and too quickly. We test these predictions by comparing home sales in which real estate agents are hired by others to sell a home to instances in which a real estate agent sells his or her own home. In the former case, the agent has distorted incentives; in the latter case, the agent wants to pursue the first-best. Consistent with the theory, we find homes owned by real estate agents sell for about 3.7 percent more than other houses and stay on the market about 9.5 days longer, even after controlling for a wide range of housing characteristics. Situations in which the agent’s informational advantage is larger lead to even greater distortions.
How do we reduce the information disadvantage? Internet is a powerful way. We need more information power on sites like one I have started
India's first online weekly onpersonal finance
Thursday, October 18, 2007
"The basic point is what is India going to do about capital controls. Do we want to become a modern market economy, do we want to integrate into the world economy, do we want to harness the benefits of globalisation or not?
There is a school of thought which thinks that the good old days were better, the good old days when we did not particularly have capital flows and we were more cutoff from the world. That is the point of debate that all of us face today."
Wednesday, October 17, 2007
There's no gain without pain. It's unrelated, but that brings me to note that I have completed one year of blogging somewhere in October. And it all started when I was stuck up with back pain! The gains for me is I have been able to look at some real good stuff( no, not porn!, but serious insights and wacky humour) on the web and that I am little more organised about my own finances.
The real gain, I guess, is that I have a sense of direction of what I want to do over the next 5 years or so. And one of them is about this web site
Monday, October 15, 2007
Moneyoga will develop a systematic & disciplined approach to investing and trading in the Indian stock market. I have been following Deepak's Blog on investment and I have really learnt a lot from him. He and Kaushik bring with them tremendous knowledge and loads of enthusiasm into this venture. I recently read the following passage from a speech by Theodore Roosevelt on Zoho Blogs and I want the Moneyoga guys to remember that!
It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement.......
Friday, October 12, 2007
Tuesday, October 9, 2007
I have been after Aditya with my set of questions on how two individuals can set up such an amazing site and concept in action. Thanks Aditya for some candid and interesting answers.
Saturday, October 6, 2007
how to figure out where our money is going and how to make it go
where we want. Make it simple, make it interesting, and get other young people
to join in on the conversation.