Weighing the Relative Risks of Action, Inaction Oddly, one of the best arguments I’ve ever heard for The Precautionary Principle — in Tom Friedman’s NYT column yesterday, titled “Trump’s Folly” — never once mentions the term. No matter. Here’s the idea: when considering a response to a looming threat, ask which way the risk(s) cut: ...Read More
Flight to Safety No, I don’t think a nuclear conflagration would be good for the U.S. housing market (or anything else). And, there’s no denying that ongoing North Korea – U.S. saber-rattling may have a chilling effect on nervous home Buyers. But, in the meantime, one of the predictable side effects of major geopolitical uncertainty...Read More
Heightened International Tension Strengthens Dollar The conflict between North and South Korea is having a predictable effect on credit markets this morning. Specifically, whenever international tensions kick up, there is a flight to safety, which — at least until now — translates into demand for U.S. dollars and U.S. debt. That strengthens the dollar, and...Read More
