…must believe that markets aren’t efficient. However, they assumed market efficiency when measuring risk. Turning the efficient markets hypothesis on and off makes it possible to think that you can…

…is due at the end of the week and nobody is answering their calls. So the market collapses. In fact, a few other markets collapse – who knows who has…

…to another. However, this approach does create something known as a financial bubble; an instance in which an increase in speculation within a financial market, inflates the market value of…

…to market problem. How ? Now I have more assets to mark to market – the original instrument and the CDS that my SPE wrote me. Well fortunately AA rated…

…look at the spreads of various debt products, you can see that the market was doing that type of job even in 2007. For instance, the debt market priced [“rated”]…

…in place for their market. Though Mr. Young mostly noted Japan’s automotive market approach, so I guess he wants more of a socialistic form of central market control. Imagine that,…

The stock market rallies 900 points on Paul Krugman winning the Nobel. Why not this is as good a reason as you often see in the popular press?…

…who confuses “Pareto efficient” and “efficient” can claim this about markets with rational agents, perfect competition and *complete markets*. It is hard to explain what complete markets would look like,…

…over the next decade. Dean Baker takes the question of the bailout to an even more elementary level, having remembered that there is a market and therefore a “market value”:…

If strong money supply growth is such a problem, why does the stock market like it so much?…