Euro Crisis & Inefficient Markets

The Greek parliament narrowly approved a fresh austerity package on Wednesday night, opening the way for international lenders to transfer a long-delayed €31.5bn slice of funding and take steps to ease the terms of the country’s €174bn bailout. Why the Greek crisis was much larger, more complex and a greater risk than anyone assumed.

Gold prices were rallying in tandem with the dollar. As the market began to crater and eventually crash 1,000 points in one day the gold market actually continued to rally along with the dollar! For anyone familiar with gold and forex markets this was more than odd. But there is a reasonable Continue reading “Euro Crisis & Inefficient Markets”

The Fiat Money system. Is it a failure ?

Gold is Money!

One thing we constantly hear all over the media is how “all fiat money systems in history have failed”.   This is just not correct.  By my count, there are several hundred fiat regimes in existence today.  What has failed and will always fail is fixed exchange rate regimes and commodity based monetary systems.  As far as I know, there is not a single one around today that has stood the test of time.  The gold standard has always failed.  And it will always fail due to inherent constraints that make it a very poor monetary design. May be reading a book Lords of Finance The Bankers Continue reading “The Fiat Money system. Is it a failure ?”

Doing an investment : some basics to check

As I did a story few days back  When to sell and When to buy ?     trying to recollect the  some book rules for Investments that holds true in many adverse scenarios.

As all of you must be aware of that the field of behavioral finance has helped us to understand that we don’t always make rational investment decisions.We often make poor decisions because of our biases. And the Continue reading “Doing an investment : some basics to check”