Stock Market Bubbles Don't Grow Out Of

This Is The Joint Responsibility Of Everyone Who Was Involved In The Introduction Of The Euro Without Understanding The Consequences. When The Euro Was Introduced, The Regulators Allowed Banks To Buy Unlimited Amounts Of Government Bonds Without Setting Aside Any Equity Capital. And The European Central Bank Discounted All Government Bonds On Equal Terms. So Commercial Banks Found It Advantageous To Accumulate The Bonds Of The Weaker Countries To Earn A Few Extra Basis Points.

The Trouble With Institutional Investors Is That Their Performance Is Usually Measured Relative To Their Peer Group And Not By An Absolute Yardstick. This Makes Them Trend Followers By Definition.

American Supremacy Is The Greatest Threat To The World Today.

Hedge Funds Are A Very Efficient Way Of Managing Money. But There Are Clearly Some Risks. Hedge Funds Use Credit And Credit Is A Source Of Instability. Transactions Involving Credit Should Be Regulated.

Stock Market Bubbles Don't Grow Out Of Thin Air. They Have A Solid Basis In Reality, But Reality As Distorted By A Misconception.