• Thought of the Day

    Thought of the Day

    2000: I feel grateful to the Milesian wench who, seeing the philosopher Thales continually spending his time in contemplation of the heavenly vault and always keeping his eyes raised upward, put something in his way to make him stumble, to warn him that it would be time to amuse his thoughts with things in the clouds when he had seen to those at his feet. Indeed she gave him good counsel, to look rather to himself than to the sky.

    –Michel de Montaigne, "Apology for Raymond Sebond," in The Complete Essays of Montaigne (transl. Donald M. Frame, Stanford Univ. Press, Stanford, 1986), p. 402.

Today in Financial History

1982: Futures contracts on the S&P 500 index become available for the first time, as they open for trading in the pits of the Chicago Mercantile Exchange. Now arbitrageurs and index fund managers can buy either the underlying stocks in the index, or a futures contract, whichever is cheaper. (Program traders can also bet on the futures, helping worsen the October crash of 1987.)

Susan Abbott Gidel, "100 Years of Futures Trading: From Domestic Agricultural to World Financial," Futures Industry, December 1999/January 2000, p. 16.