...on human nature and the market, including a call for restraint on mindless regulation...
The changing way labour and skills markets operate and are being disrupted by on-line exchanges and cloud computing 'enablement' technologies
Have you ever overheard a small debate between children related to #economics? Some at theMarketSoul (c)1999 -2013 find themselves in Spain this weekend, relaxing with family and the following conversation between young siblings are worth repeating. In some bizarre way, it relates to labour economics and the minimum wage: We had just observed a single horse … Continue reading Pony ponderings…
Thoughts on over regulation and disincentives
With apologies to The Smiths; the original version of the song Panic’s lyrics reads something like this: “Panic on the streets of London / Panic on the streets of Birmingham / I wonder to myself / Could life ever be sane again?” Or is this the beginning of what we will call ‘Austerity Anarchy’? As … Continue reading Panic in the Cars of Britain?
Trust, due diligence and an investor's duty to assess their own risk appetite and profile should be the ingredients for Trust...here we highlight the basics of Trust
We decided to summarise our learning from 2011 into two brief thoughts: The pains and strains of the economic sovereign debt melt-down in 2011, should stand us in good stead to deal with even more debt and sovereign strain in 2012, as More and Bigger Europe continue to miss the point; this being … Continue reading Our Lessons from 2011
Adding further value to our conversation on The Market eQuation we introduce the concept of the: RISKed RETURN on MARKET (RdROM) today on 11.11.11. RISKed RETURN on MARKET adds a counter balance to the Efficient Market Hypothesis and Rational Market Theory, Black Scholes and CAPM, amongst others. More detail to follow in due course... theMarketSoul ©2011
Irrespective of how the twists and turns of the Greek political system plays out over the next few days and weeks, we believe that the Big EU (Eurozone more specifically) players and their leaders only have themselves to blame for Greece's seemingly petulant behaviour. If at the fundamental level we cannot understand that ANY form … Continue reading The Big Design: Moral Hazard, and the EU
Originally published 4 October 2009: Information Asymmetry is what drives the market. We alluded to this in an earlier blog posting (see Market Responsibility, Saturday, 18 October 2008). Yet we still hear the socialist agenda mention regularly that if it wasn’t for the recent government interventions to ‘save the market’, the market would have collapsed. … Continue reading The Ice Age is Cometh
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Yesterday the Independent Commission on Banking (Vickers Commission) published its long anticipated, yet low in surprises report on Banking Reform in the UK. See: Rather than rehash the analysis already performed, we only have two items to add at this stage: Get your calculators out, or at least keep the Quants busy, because unravelling and … Continue reading Get your calculators out
Some say that in life timing is everything... And so too it is with economics. We don’t yet have a fully developed and ‘mature’ [in terms of life-cycle] grasp of the impact of timing with leads and lags in the economy in general. Yes, we have very sophisticated and advance models, analytics, knowledge management, quantitative … Continue reading A sigh of relief?
As a general introduction today we will look at two US Treasury Yield curves. The first Yield curve in the Curve graphic 1 below is the 3 Month bills compared to the 10 Year bills over the last 5 years. Yield Curve 1 In this table it is clear that the current 10 Year … Continue reading The US Treasury Yield Curves – Are the markets really that bothered?
Risk has as one of its essential elements TRUST as a foundation. Trust on the other hand has many other factors that interplay and interact on it. Markets are created when there are needs that are not immediately met from you local environment and therefore scarcity exists. Market participants step in to fill this 'needs' … Continue reading Risk Management Ideas
Conspiracy theories! Today we express an opinion on the phenomenon of ‘governmental’ economic landscape shaping. Interference whether actively pursued or via involuntary actions promotes our heightened sense of concern by the effects that the aggregation of supply and therefore the encouragement, either directly or indirectly of oligopolistic and monopolistic market structures, is having on the … Continue reading An Aggregated Challenge
We link today’s article to one of our main themes on our home page, namely the ‘Battle against the Status Quo’, or as per the title of this posting, ‘The Morass of Mediocrity’. The underlying intent and theme is that of competition and competitive behaviours and the difference between rules based and principles based … Continue reading The Morass of Mediocrity
If ‘the Law’ is the codification of cultural norms and practices, does the Law then not inform culture? Policy, social malice and engineering of social outcomes bend these laws into legislative blunt instruments designed to enforce cultural behavioural changes on a grand scale, trouncing the common law of good judgment, neighbourly relations and common sense … Continue reading Does Law inform or enforce culture?
The CBI published a report entitled "The shape of business - the next ten years" in late 2009. The authors identified 5 key drivers affecting the business environment, namely: 1. Changing finance and capital conditions, 2. The decline of trust in business and markets, 3. A less benign macroeconomic environment, 4. Social and … Continue reading The Sustainability Gene
There has again been a short period of drift and volatility in 'The Markets' recently. And yet again we have heard the old refrain: "Markets hate uncertainty". This we assert is yet again a misused turn of phrase. It is not uncertainty that markets hate, because inherent within market processes and market operations is the … Continue reading The Markets do not need certainty