Re: Nobel prize for economics ?

From: Sylvain Croussette (NOSPAM_sylvaincroussette_at_yahoo.ca)
Date: 07/08/04 

Date: Thu, 08 Jul 2004 10:11:30 -0400

calccurve-test23@yahoo.com (Van Jacques) wrote:

>I was watching NOVA on PBS, about the guys who got the
>Nobel prize for economics for the math of the stock market,
>(before their company went bust and the government had
>to bail them out, supposedly to keep the economy from going
>under, but really just to bail out friends of politicians).

What you are referring to is
http://www.pbs.org/wgbh/nova/transcripts/2704stockmarket.html

One of the members of LTCM was Myron Scholes, who did get the
economics prize in 1997 for the Black-Scholes formula for pricing
options (funny LTCM went bust in 98, maybe they should have waited 1
more year). But it's not all the people on LTCM that got the prize,
just him.

>
>Did Nobel really say to give a prize for economics?

I don't think so, the correct title for the economics prize is here:
http://www.nobel.se/economics/laureates/1997/press.html
http://www.nobel.se/economics/index.html

And here it says the Nobel prize is for physics, chemistry, medicine,
literature and peace, and separately for economics:
http://www.nobel.se/nobel/index.html
There is a different commitee for each.

>
>Anyway, they threw darts at a board and did better than
>the "best" traders.
>
>What do you think of giving the Nobel prize to these guys
>for economics, in light of what has happened since the prizes
>were given.

As I said it was Scholes who got the prize, for something unrelated
(directly) to LTCM.

>****************

>People don't want to accept that there are just to many variables
>to predict what the market will do, and that speculators are
>really just gamblers. They want to believe that people who are
>in the market really are able to choose the best investments.
>
>This has been proved false over and over. The only way to
>really come out ahead is to get an unfair advantage over others.
>This is how the big shots make their money.
>Recall how upset they were when Google decided not to go
>thru banks who always sell to "preferred" people super cheap,
>then make the stock go up by releasing it to the general public.
>
>Well enough of this.

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