Weekend Reading – Stuff we found interesting this week

November 12, 2011

Interesting Links

November 12th  2011.

Welcome to our weekly roundup of the stuff we read that was interesting to us and hopefully to you.

 

This was my favourite post for the week and comes courtesy of Credit Writedowns. It’s titled the Road to Serfdom and really puts the Euro mess and its politicians under the spotlight.

Merkel and Sarkozy really let the cat out of the bag last week when they effectively said that a EUR break up was possible. It seems that contingency plans are being made for such an eventuality and there were many articles on this during the week – here is one.

I linked a short article last week that said that the mess is because the ECB should be more like the Fed and the BOE – I still agree with that. indeed i have always had a view that the 1987 stock market crash was pressured by Bundesbank actions around that time so the latest bout of European Central bank intransigence is just familial consistency. Here is a piece from the New York Times that looks at what the ECB should be doing – in a nutshell, BUY SOVEREIGN BONDS and ISSUE EUR into the market.

The Wharton Business School at the university of Pennsylvania is one of my favourites in the USA. Here is a link to some articles they released earlier this week on the current crisis.

I recieved my edition of Daniel Kahneman’s new book “Thinking fast and slow” during the week and have just read the introduction. What a brilliant mind this man is and what a great loss his partner in crime, Amos Tversky, was in 1996 at the age of just 59. As readers know I am a behavioural economics and finance guy and Kahneman informs much of my understanding of the way people interact to form economies and markets, as does Mandlebrot.

Here is the link from the Guardian I posted last week on Kahneman’s summary of his book and here is a link about using situational awareness in your own investing and trading. this is particularly insightful as i truly believe you need to match your mind to the market and if ou can’t – don’t trade. 

Decent people got hurt and continue to get hurt by this crisis. Here is a story from the New York Times on how a man stumbled into finance, got caught up in the market and the boom it created, blew up and journeyed back.

On the theme of the impact of the crisis and the growing inequality here is a really interesting article from my colleagues over at MacroBusiness.

Here is an interesting take on Super from The Prince over at MacroBusiness. The chart at bottom I am very passionate about. Why is it that Australian’s have so much of their super in shares? I favour more bonds and interest rate product in my portfolio allocation.

And of course the FT’s week in review

Have a great weekend

Greg McKenna

greg@lighthousesecurities.com.au

www.twitter.com/gregorymckenna

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