The Drink Exchange

The Drink Exchange is an increasingly popular software being implemented in bars across the world. How it Works Designed to mimic the real-world Stock Market, prices of drinks rise and fall depending on popularity. Television screens across the bar show real time prices of drinks that change by the minute depending on supply and demand. This may be the only market in the world where everyone is hoping for a crash. Promotions As for now, customers are fighting to purchase drinks at the lowest price they can. In the future, however, the company plans to incorporate more Stock Market themed Continue reading The Drink Exchange

What Increasing the Federal Funds Rate Means for the Stock Market

Since the Great Recession rocked the U.S. and world economy in 2007, the federal funds rate in the U.S. has been at or near zero, falling from its pre-recession level of 5.25%. The hallmark of post-recession years has been the Fed’s strict adherence to low interest rates for fear that raising them could send the United States back into a recession. But now, this period may finally be coming to an end. For the first time in nine years interest rates may be set to climb as Janet Yellen announced at the Fed’s annual Jackson Hole meeting two weeks ago Continue reading What Increasing the Federal Funds Rate Means for the Stock Market

Signaling and the Dutch East India Company    

About a month ago, NPR’s podcast planet money aired an episode on shorting the stock market, and specifically, the very first short in the stock market. This may be one of my very favorite episodes they’ve ever done, for two reasons. The first reason is that it represents the beginning of a very interesting (albeit dangerous) phenomenon in the stock market. The second is how signaling gave birth to many of the features of the modern stock market. This second part is interesting, and I’d like to give some explanation as to how it works, and then, how it birthed Continue reading Signaling and the Dutch East India Company