Do we have the capability to eliminate booms and busts in economic activity? The answer in my judgment is no, because there is no tool to change human nature. Too often people are prone to recurring bouts of optimism and pessimism.
September 16, 2011
It's been a tough few months for the stock market but things could be worse. While the S&P 500 has declined roughly 12% from its peak in early May, the price action overseas makes the grass look a lot greener on this side of the pond. While we struggle domestically with high unemployment and uneven economic data, foreign markets ...
September 06, 2011
“Oh, my! MRK (Merck Drug) is trading like soybeans!” screamed the shocked trader. It was the spring of 1982 and stock futures and program trading had just been introduced to the equities market. Prior to then futures, which existed for hedging purposes, were only in commodity markets. Computer-driven Program Trading– the simultaneous...