Well dear reader. I have spend an awful amount of time in digging through the world of finance. And what a spectacle it was. And
still is!
It has been such a tremendous experience that I truly need to address economics and finance in a more thoroughly way in the first chapters of the English Bazaarmodel book. Because... my oh my. Just read my thought
Ludicrous (finance). If you thought that Alice in Wonderland was warped... Heh.
By the way, Ludicrous (finance) also relates to the
Overview Project C (pdf) document. Page 18, note 9 and 12, plus page 22, note 3.
Global individuals should pay attention to what is happening now in the world of finance. It shall effect every part of the globe. More important. To keep yourself afloat, as well as the company (this could also be a household) itself, you could take precautions. The best investment remains investing in good relationships with the people around you. And a good currency.
If Jean-Claude Trichet uses a hammer, by rising interest and crushing the outpouring of money (M3 money growth, see
Monetary developments in the euro area), than the euro will be a good currency. But he needs to hammer hard.
M3 growth should be around the same as economic (euro zone) growth (+/- 2%). M3 now (
August 2006 (pdf)) stands at 8.2%...
Together with
Ludicrous Finance, that also makes ECB president Trichet somewhat nervous [1]. My oh my.
J.
P.S. Trichet doesn't know how big the financial derivative market is. Maybe he will within a few months... Quadrillion here quadrillion there.
Note[1]
“European Central Bank President Jean-Claude Trichet said Thursday he supported stronger international coordination of hedge fund supervision in the wake of recent troubles in the industry. ‘It is quite obvious that you can and that you have to improve the situation in this area… In this area we need a world-wide solution. So there are no part solutions such as one continent, because it is a problem and a question that arises at the world level, obviously.’”--MarketNewsInternational - October 5, 2006