Efficient markets: fact and fiction

In this clip Michael D. Goldberg talks about the efficient market hypothesis, a talk given at the King’s Institute for the inaugural conference of the Institute for New Economic Thinking (INET), a group financed by legendary investor George Soros.

This video has a behavioural slant to it, and there is a strong focus on irrationality, herding, and other behavioural aspects of the markets.

Personally I’m not convinced that we can turn our back on the efficiency of the markets, nor that we can necessarily undo or limit the inherent weakness in any market, any blockade or regulatory restriction has a tendency to fall victim to circumvention of various sorts. However, there are growing bodies of work that point out the weaknesses of markets, and in this area the behaviourists are streets ahead of the curve in understanding the key points of market movements that are difficult to comprehend because they don’t act the way we think that they would or should.

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RTE ‘Frontline’ with Pat Kenny: NAMA for the little people?

RTE Frontline 12th April 2010 – NAMA for the little person? from Irish Mortgage Brokers on Vimeo.

Irish Mortgage Brokers was featured on RTE’s ‘Frontline’ with Pat Kenny on Monday the 12th of April 2010. The topic of the day was about bailouts for home owners who are in trouble with their mortgages.

Noleen Blackwell of Free Legal Advice Centre was there on behalf of favouring methods to save home owners, and Karl Deeter of Irish Mortgage Brokers was there promoting the use of market mechanisms as a solution, along with arguing the case that for many people, bank ownership of their home is not necessarily a bad thing.

This is a hot topic in Ireland, in particular because many people feel, that taxpayers stepped up to save our banks, so now they should do the same in return.

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A tale of two bankruptcies

This is an interesting video by Fault Lines called ‘A tale of two bankruptcies’ and it looks at how, in the face of financial pressure a bank is treated versus how the regular US family is treated. This is not comparing like for like but it does point out some of the reasons for widespread anger in the US about the way that tax dollars are being spent.

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