…item 2 stems directly from the “efficient markets hypothesis”–that markets price items appropriately through sharing of information. But what we know suggests this isn’t true. We have an entire vocabulary…

…two don’t have to be linked, although they often were–was that it was relatively easy to model the movements of markets and manage the risks thereof. If you believed these…

Robert Waldmann Two quotes about liquidity. An anonymous TPM reader it is in everyone’s interest that markets be as liquid as possible. One of the factors increasing the risk of…

rdan GAO has a report on regulation deficiencies of financial markets: Several key changes in financial markets and products in recent decades have highlighted significant limitations and gaps in the…

…would, among other things, make markets thick, volume high, markets unfrozen and adverse selection drowned in the flood of liquidation by firms with binding capital requirements (note the argument works…

McCain and Obama on Lehman Brothers McCain: “The crisis in our financial markets has taken an enormous toll on our economy and the American people — first the decline of…

…weakened against the euro, China has stepped up its intervention in currency markets to keep its yuan inexpensive and exports growing. Factoring in higher oil prices too, the overall trade…

…given company, they have some monopoly-like power over you (even though they lacked such power before you signed on). How does this work out for consumers? In lock-in markets, most…

…because neither the Fed nor the markets understand it properly. Certainly the Fed governors have strong disagreements about how it works. (Arguably, nobody understands, very much including me. There are…

…of the others that have ever been invented. My inclination to leave markets along (except for 1-6) is based on mistrust of the state not trust in markets. I am…