What’sTheDifferenceBetweenMarkets & Reality? About 22% YTD http://feedly.com/k/IuzA4R Faith, hope, andconfidence are the 3 key factors driving stocks at this point with fundamentals lagging an awkward 4th place. Faith in the perpetual central bank put (and bad news is thus good news); Hope that repeating the same ‘experiment’ following its previous failures will work this time; and confidence that the old normal is re-attainable (no matter … Seguir leyendo What’s The Difference Between Markets & Reality? About 22% YTD

ISLM: a furtherexplanationand a defense http://feedly.com/k/IzqT9g I noted before the traditional representation of the ISLM is problematic. Yet as I also noted the ISLM model can accommodate changes that incorporate the criticisms of classical-Keynesian, post-Keynesian and other heterodox groups. There is no need for an investment function based on the marginal productivity of capital and the principle of substitution. The accelerator can be incorporated, and … Seguir leyendo ISLM: a further explanation and a defense

ShillerWorriedAbout "Boom InUSStocks… Bubbles Look LikeThis" http://feedly.com/k/18vYY6w On the heels of his recentappearancepouringcoldwateronJimCramer’shousingrecoveryexuberance, recent Nobel Prize winner Bob Shiller unloads another round of uncomfortable truthiness (presumably on the basis of his future-proofing tenure guaranteed by the Nobel). "Bubbles look likethis," Shiller tells Der Spiegel, adding that he is, "most worried about the boom in US stock prices." As Reuters reports, Shiller is concerned since "the … Seguir leyendo Shiller Worried About “Boom In US Stocks… Bubbles Look Like This”

BitcoinPlungesIntoBearMarket http://feedly.com/k/1hrsWv8 UPDATE: BTC has rallied 26% offitslowsinthelast 55 minutes – with extreme volumes From it’s gold–matchinghighsat $1242 onThursdaynight, the price of Bitcoin has collapsedover $400 (32%) to $840 onheavyvolume. Of course, this is only a one-week low for the exuberant digital currency but still a significant plunge (as its smaller brethren Litecoin has collapsed 51% fromitshighs). Interestingly, this drops the price of Bitcoin in … Seguir leyendo Fortísima bajada del Bitcoin

WhyHayek’sTheoryofPricesandKnowledgeisFlawed http://feedly.com/k/18uhtIv Frederic S. Lee explains in the passage below from insights by the British economist GeorgeRichardson: “After reading Friedrich Hayek’s article on economics and knowledge (Hayek, 1937), Richardson became concerned with the theoretical problem of the market conditions under which the enterprise could expect to generate the necessary information on which to base its investment decisions. Approaching the problem theoretically, Richardson first argued that … Seguir leyendo Why Hayek’s Theory of Prices and Knowledge is Flawed