economics

I was reading an article in the Sunday Business Post, Banks blame regulator - for wrong reason, and it got me thinking about how this is another example of information asymmetry.

There is lots and lots of money being pumped into the financial markets at the moment. The fed is throwing money at everything that moves, the ECB is doing the same, and the Japanese central bank has been doing it for years. Traditionally when you do this, there is lot of inflation, which is what all the central banks want too, since it inflates away all our date.

A report in the Irish Times today has this choice quote from the OECD secretary-general:

“We did not see it coming certainly. And nobody else did,”

This quote is in reference to the collapse of the banks. The OECD had said last year that the banks were in good shape, and would do grand.

The cycle of market emotions. I found this graph on the property pin, and I think it's worthy of another share.