Lynne Kiesling In a full-information equilibrium in a liquid market, the forward price should exactly equal the spot price plus the carrying cost (storage cost plus foregone interest)[NOTE: I updated this to change the typo that the first comment caught, good catch!]. Thus you can explain the current increase in the crude spot price as … More More Contango Thoughts … More More Contango Thoughts
Lynne Kiesling Oil prices today are the highest (nominal) prices ever, over $71. Some of the driver of this price increase is uncertainty surrounding Iran. But what’s really interesting from an economic perspective right now is that oil markets are in contango, and have been in contango since early this year. Wikipedia defines contango thus: … More Oil: Shall We Contango? … More Oil: Shall We Contango?
Lynne Kiesling When Apple introduced its new Intel dual-core-powered computers, my first question to my soon-to-be-Apple employee student was “when can I dual-boot OSX and Windows on my Mac?” As everyone knows now, the anser is “as of two weeks ago”. While it’s still in beta, Boot Camp has lots of folks singing its praises, … More Two Mac/Windows Options: Bootcamp and Virtualization … More Two Mac/Windows Options: Bootcamp and Virtualization
Lynne Kiesling Thomas Dolby has a blog! And he’s touring. And the place he’s playing in Chicago is walking distance from my house. What a good way to start my morning. Thanks to Glenn Reynolds for the link to Dolby’s post on “Freakonomics in action” and the speed of information (and mis-information) dissemination on the … More Thomas Dolby Has A Blog Too! … More Thomas Dolby Has A Blog Too!