On the EU’s Substitution Effect: Haircuts and Market Realities
We have the feeling that we needed a surgery and we got a counseling session. The “landmark” deal announced in the early morning hours (EU time) yesterday, is full of uncertainties and ambiguities. Moreover, it seems that is another band-aid that seems to kick the can...The Abyss of a Credit Freeze: EU Imbalances and the Enigma of Market’s Exostosis
An abnormality (exostosis) has been developing in the markets that involves an a priori assumption that the EU will solve its debt and banking problems. On the surface it seems that this exostosis is benign and can be fixed with the expected enhancement of the EU’s...Does Money Matter? Blowing (Bubbles) in the Wind
The late Milton Friedman used to ask his students at the University of Chicago whether money matters. Of course, the classic answer that he was expecting from them was: “Only money matters!” Whether someone subscribes or not to this strict monetarist view, the...Dark Energy or Dark Matter? The Greed and Fear of a Market that Seeks Life Through Death
The markets are known to be moved by the forces of greed (upswing and bullishness) and fear (downturn and bearish trend). In a similar way, in the cosmos there are two contradictory mysterious forces that move the universe in opposite directions. The first one is...Sign Up for Our Publications
