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Peer pressure and bubbles
What has the housing bubble told us about market efficiency, social psychology and economics? Quite a lot, I believe.In the aftermath of the housing bubble, one thing is for certain: we can throw out the inane "Efficient Market…
News round-up: 18 Aug 2008
Top BillingNo Limit to Greenspan's Once-In-A-Century Events: Caroline Baum - BloombergFinancial sector woesU.S. likely to recapitalize Fannie, Freddie: report - ReutersU.S. banks scramble to refinance maturing debt - FTAnalysts Said to…
Random Musing: London house prices
An article in today's Guardian says that London property prices are falling. In fact they fell over 5% in a single month.Asking prices in London fell 5.3% in August, according to the Rightmove house price survey - equivalent to a £21,000…
Relative value in financial services
Not every financial services sector company is a basket case destined for bankruptcy. There are many well-run lower risk organizations in the bunch. Moreover, let's not blame the banking model for individual companies' woes. The Economist…
The Euro and Baltic currency overvaluation
Baltic currencies are overvalued, which has led to hot money flows and unsustainable levels of consumption. A crash is all but inevitable. The Baltics want in to the Euro, Estonia and Lithuania in particular. They are willing to…
News round-up: 17 Aug 2008 – weekend edition lite
HousingU.S. subprime collapse reaches Welsh town - LA Times (LA Times take on interconnectedness of post-bubble world)American housing - home economics - Economist (optimism)American housing - ticking time bomb - Economist (pessimism)Dr.…
Property more overvalued in Sweden than in US
This weekend I am at my wife's family reunion so I haven't have a lot of time for blogging. But, I caught an interesting article in Swedish daily Dagens Nyheter, which cites an IMF study which claims that property values in Sweden are…
Vision, Tactics, and Stubbornness
Judgment or Experience?Many American citizens claim our President needs a strategy and a vision for the future. The most common complaints are about a lack of vision on the economy, health care and in our response to terrorism and the war…
Denmark’s house prices fall
As the first bubble economy to hit the skids and officially fall into recession, tiny Denmark deserves a mention. Statistics Denmark has released figures showing that house prices are falling in Denmark, which joins an ever-increasing group…
The Cold War redux
Recently, I have become very concerned about the deteriorating geopolitical situation and its likely effects on the global economy. The Georgia-Russia situation produced a response from the U.S. to defend Poland with a missile shield,…