econlife on ‘Financial Markets’

Financial markets connect borrowers and savers. By determining the price and quantity of money, financial markets are central to a market system. Financial markets also take us to central bankers like the US Federal Reserve system and the interest rates that central bankers influence. When econlife looks at financial markets, it is also exploring the role and definition of money and investment.

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    Blowing Bubbles

    Jul 17, 10 • 112 Views • Economic History, Financial MarketsNo Comments

    In The Big Short, Michael Lewis explains the subprime bubble mentality through a quote about CNBC media coverage. “…they weren’t in touch with reality anymore. If something negative happened, they’d spin it positive. If something...

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    The Marshmallow Test and Financial Reform

    Jun 27, 10 • 97 Views • Behavioral Economics, Financial Markets, Labor, RegulationNo Comments

    Is it possible that the marshmallow test relates to financial reform? As described in a 2009 New Yorker article by Jonah Lehrer and a WNYC Radio Lab podcast, a marshmallow test given to 4 year olds might predict adult behavior. 40 years ago, psychologist...

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    World Cup Soccer and Stock Markets

    Jun 23, 10 • 93 Views • Financial MarketsNo Comments

    Referring to a basic investing strategy, Vanguard founder, Jack Bogle said, “Buy and hold forever”. If you disagree, though, you might want to hear about the impact of World Cup soccer on stock markets. In a recent academic study, researchers...

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    Paying Fannie Mae’s Bills

    Jun 22, 10 • 90 Views • Financial Markets, Government, HouseholdsNo Comments

    Each of us is helping to pay a $10 million monthly grass mowing bill. Why? Because of homes that are owned by Fannie Mae and Freddie Mac. As GSE’s (government sponsored enterprises), Fannie and Freddie had purchased mortgages from financial...

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    Is Fannie Mae Your Friend?

    Jun 15, 10 • 105 Views • Economic Thinkers, Financial Markets, HouseholdsNo Comments

    I was surprised to hear that when Fannie Mae was created in 1938 as a federal agency, a part of her mission was to move money. At the time, because of the 1927 McFadden Act, interstate banking was prohibited. As a result, there could be (and was) insufficient...