Tuesday, July 3, 2012

The "Real Economy" Makes The News

Well, darn it!, I feel vindicated at long last... I've been harping on the need to focus on the Real Economy (tm) for so long in this blog, I was beginning to feel like a "nut".  

Lo and behold, Reuters just ran an article on the theme: Crisis forces "dismal science to get real".  Out go "rational expectations", "supply and demand", econometric formulas, etc. and in come... Argentinian ants, of all things (read the article).
 As Real As It Gets, Apparently..

Here's another "shock" from the Reuters report: testosterone levels in human "players" are more important than risk-return analysis (duh.. anyone who's been around a dealing room/trading floor could have told 'em, several dozen years ago, even).

Mmm... better lay off the bug spray.  It may prove dangerous to your (financial) health.


Rufus said...

The problem with "all government is bad" ideology:

said Gatti. "What the traditional theories do not consider is that the financial market must be regulated. A too-liberalized market creates monsters."
And do we have monsters.

Hellasious said...

Oh do we ever have monsters...

Financial markets went to truly uncharted territories a few years back, but without paying any attention to the warning Hic Sunt Dracones (here be monsters) placed on the map... :)

Rufus said...

Analogous to the saying, you kill one person you're a criminal and go to jail, you kill a million people they call you a general, you kill everyone they call you god.

You rob from one person they call you a criminal, rob a million people they call you a trader, rob everyone they call you a banker.

commodity tips said...

China is certainly not the only country encouraging investment in its real economy, other countries are doing the same.