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	<title>the rational post &#187; bubble</title>
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	<link>http://www.freedom24.org/rationalpost</link>
	<description>a collection of essays and articles on the science of everyday life</description>
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		<item>
		<title>turning a new leaf?</title>
		<link>http://www.freedom24.org/rationalpost/2010/04/07/turning-a-new-leaf/</link>
		<comments>http://www.freedom24.org/rationalpost/2010/04/07/turning-a-new-leaf/#comments</comments>
		<pubDate>Wed, 07 Apr 2010 20:56:52 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[banking system]]></category>
		<category><![CDATA[bubble]]></category>
		<category><![CDATA[crisis]]></category>
		<category><![CDATA[greenspan]]></category>
		<category><![CDATA[macroeconomics]]></category>
		<category><![CDATA[regulation]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=2068</guid>
		<description><![CDATA[Mr. Dollar testified before the Financial Crisis Inquiry Commission today about the challenges of a self-regulating market and the dangers that lie ahead. While his belief in free market capitalism remains unshaken, Greenspan&#8217;s warnings about the key attributes that should underpin a stable banking system &#8212; adequate capitalization, liquidity, and regulatory oversight &#8212; cast a surprising shot across the bow of modern banking giants who have grown a little too comfortable with their bailout blanket and artificially low interest rates. 
Whether the economy tips back into chaos or not remains to be seen, but the rare regulatory prudence recommended in the Maestro&#8217;s testimony is a welcome conservative voice in the growing chorus to reign in banking titans who seem unwilling ...]]></description>
		<wfw:commentRss>http://www.freedom24.org/rationalpost/2010/04/07/turning-a-new-leaf/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>volcker rules</title>
		<link>http://www.freedom24.org/rationalpost/2010/02/02/volcker-rule-sustainable-reform/</link>
		<comments>http://www.freedom24.org/rationalpost/2010/02/02/volcker-rule-sustainable-reform/#comments</comments>
		<pubDate>Tue, 02 Feb 2010 12:20:15 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[history & society]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[bubble]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[macroeconomics]]></category>
		<category><![CDATA[policy]]></category>
		<category><![CDATA[regulation]]></category>
		<category><![CDATA[speculation]]></category>
		<category><![CDATA[volcker]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=1956</guid>
		<description><![CDATA[A perennial hot ticket on the lecture circuit at economic clubs and grad schools around the planet, Paul Volcker&#8216;s influence is finally starting to resonate where it counts: at both ends of Pennsylvania Avenue. As his testimony in front of the Senate Banking Committee looms, the broader premise of a more responsible financial services sector pursuing sustainable, profitable growth needs to get out in clear journalistic prose from a messenger untarnished by the last 18 months of political and economic triage. This Sunday NYTimes op-ed attempts to do just that, despite the complexity of the topic. Unfortunately, it falls a little short for those either too stubborn or greedy to listen or too impatient to digest his astute commentary on ...]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>christianity and the crash</title>
		<link>http://www.freedom24.org/rationalpost/2009/12/25/christianity-crash-financial-crisis/</link>
		<comments>http://www.freedom24.org/rationalpost/2009/12/25/christianity-crash-financial-crisis/#comments</comments>
		<pubDate>Fri, 25 Dec 2009 16:25:54 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[history & society]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[behavioral]]></category>
		<category><![CDATA[bubble]]></category>
		<category><![CDATA[investment]]></category>
		<category><![CDATA[money]]></category>
		<category><![CDATA[psychology]]></category>
		<category><![CDATA[real estate]]></category>
		<category><![CDATA[religion]]></category>
		<category><![CDATA[speculation]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=1717</guid>
		<description><![CDATA[&#8220;America’s mainstream religious denominations used to teach the faithful that they would be rewarded in the afterlife. But over the past generation, a different strain of Christian faith has proliferated—one that promises to make believers rich in the here and now. Known as the prosperity gospel, and claiming tens of millions of adherents, it fosters risk-taking and intense material optimism. It pumped air into the housing bubble. And one year into the worst downturn since the Depression, it’s still going strong.&#8221;
Did Christianity Cause the Crash?
by Hanna Rosin in The Atlantic Monthly

IMAGE CREDIT: MARK PETERSON/REDUX
LIKE THE AMBITIONS of many immigrants who attend services there, Casa del Padre’s success can be measured by upgrades in real estate. The mostly Latino church, in Charlottesville, Virginia, ...]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>black (scholes) hole</title>
		<link>http://www.freedom24.org/rationalpost/2009/01/22/wall-street-black-hole-option-pricing/</link>
		<comments>http://www.freedom24.org/rationalpost/2009/01/22/wall-street-black-hole-option-pricing/#comments</comments>
		<pubDate>Thu, 22 Jan 2009 16:36:18 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[finance & economics]]></category>
		<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[black scholes]]></category>
		<category><![CDATA[bubble]]></category>
		<category><![CDATA[capital markets]]></category>
		<category><![CDATA[crisis]]></category>
		<category><![CDATA[derivatives]]></category>
		<category><![CDATA[models]]></category>
		<category><![CDATA[regulation]]></category>
		<category><![CDATA[risk]]></category>
		<category><![CDATA[speculation]]></category>
		<category><![CDATA[theory]]></category>
		<category><![CDATA[trading]]></category>
		<category><![CDATA[valuation]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=583</guid>
		<description><![CDATA[Scientists and market commentators have long been aware of the susceptibility of the markets to any single investment philosophy. The rise of early program trading contributed to the historic one-day loss of nearly 23% on Black Monday in 1987. Recent experiments with risk securitization may cost trillions of borrowed dollars to unwind and decades to fully digest. In this piece by veteran commentator Michael Lewis, the blame is placed squarely on the flawed assumptions of the Black-Scholes model, and the degree to which its methodology spread from the arcane trading desks of the world&#8217;s biggest investment banks to the private retirement savings of the beleaguered middle class&#8230;
Inside Wall Street&#8217;s Black Hole
by Michael Lewis
For years, investors have relied on a complex ...]]></description>
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		<item>
		<title>housing freefall</title>
		<link>http://www.freedom24.org/rationalpost/2008/12/31/housing-freefall/</link>
		<comments>http://www.freedom24.org/rationalpost/2008/12/31/housing-freefall/#comments</comments>
		<pubDate>Wed, 31 Dec 2008 18:31:36 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[featured]]></category>
		<category><![CDATA[finance & economics]]></category>
		<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[bubble]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[real estate]]></category>
		<category><![CDATA[speculation]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=457</guid>
		<description><![CDATA[This time series from Robert Shiller puts recent house price fluctuations and their associated derivatives in an important historical perspective&#8230;

]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>the view from 1929</title>
		<link>http://www.freedom24.org/rationalpost/2008/10/06/the-view-from-1929/</link>
		<comments>http://www.freedom24.org/rationalpost/2008/10/06/the-view-from-1929/#comments</comments>
		<pubDate>Mon, 06 Oct 2008 14:34:34 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[history & society]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[bubble]]></category>
		<category><![CDATA[galbraith]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[real estate]]></category>
		<category><![CDATA[speculation]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/?p=308</guid>
		<description><![CDATA[&#8220;Spectacular episodes in financial history&#8221; come about more often than we might expect, and certainly more often than we remember. Harvard economist John Kenneth Galbraith wrote a brilliant primer on financial speculation in the early 1990s, suggesting that our memory for financial disaster was far more limited than our intelligence might otherwise suggest: 
&#8220;Built into the speculative episode is the euphoria, the mass escape from reality, that excludes any serious contemplation of the true nature of what is taking place&#8230;.Contributing to and supporting this euphoria are two further factors little noted in our time or in past times. The first is the extreme brevity of the financial memory. In consequence, financial disaster is quickly forgotten&#8230;&#8221;
While speculation was only the trigger ...]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>all that glitters</title>
		<link>http://www.freedom24.org/rationalpost/2006/11/23/all-that-glitters-2/</link>
		<comments>http://www.freedom24.org/rationalpost/2006/11/23/all-that-glitters-2/#comments</comments>
		<pubDate>Thu, 23 Nov 2006 04:32:48 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[bubble]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[macroeconomics]]></category>
		<category><![CDATA[real estate]]></category>
		<category><![CDATA[regulation]]></category>
		<category><![CDATA[speculation]]></category>
		<category><![CDATA[statistics]]></category>
		<category><![CDATA[theory]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/2006/11/23/all-that-glitters/</guid>
		<description><![CDATA[November 23, 2006—More dour news about the coming financial apocalypse, this time by noted economic strategist Dr. Gary Shilling. The augur, once again, is a hyper-inflated housing market, driven principally by excessive leverage, scandalous consumer spending, and inexhaustible financial optimism. &#8220;And why not?&#8221; you might ask. Everyone and their uncle has made money in real estate over the past five years, from the slummiest crack house to the most decadent penthouse. The more money everyone has, the more money everyone spends, and most developed economies have profited handsomely from that arrangement.
To get a sense of why the experts are now tempering such myopic enthusiasm, and why these so-called &#8220;speculative episodes&#8221; are inherently not in the economy&#8217;s best interests, read some ...]]></description>
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		<slash:comments>0</slash:comments>
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		<item>
		<title>serenity now</title>
		<link>http://www.freedom24.org/rationalpost/2006/09/06/serenity-now/</link>
		<comments>http://www.freedom24.org/rationalpost/2006/09/06/serenity-now/#comments</comments>
		<pubDate>Thu, 07 Sep 2006 02:31:00 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[bubble]]></category>
		<category><![CDATA[china]]></category>
		<category><![CDATA[consumption]]></category>
		<category><![CDATA[contagion]]></category>
		<category><![CDATA[development]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[panic]]></category>
		<category><![CDATA[speculation]]></category>
		<category><![CDATA[trade]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/2006/09/06/serenity-now/</guid>
		<description><![CDATA[Morgan Stanley&#8217;s chief global economist adds his voice to the growing choir of doomsayers, predicting heartbreak for employees and consumers throughout the high-cost, developed world. His thesis is simple: growth in the world economy has come not from soaring wages but from bubbalicious home prices, soaring corporate profits, American consumerism  and low-cost third-world labour. As jobs continue to stream offshore and the markets pray for a &#8220;soft landing&#8221;, recession may be the only tune this chorus is willing to sing&#8230;
Global Growth Paradox
by Stephen S. Roach
The global labour arbitrage tilts returns to labour away from the high-wage industrial world toward the low-wage developing world.
After fixating on an inflation scare over the past four months, financial markets have turned their attention ...]]></description>
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		<slash:comments>0</slash:comments>
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		<item>
		<title>chicken little</title>
		<link>http://www.freedom24.org/rationalpost/2006/08/29/chicken-little/</link>
		<comments>http://www.freedom24.org/rationalpost/2006/08/29/chicken-little/#comments</comments>
		<pubDate>Wed, 30 Aug 2006 01:59:34 +0000</pubDate>
		<dc:creator>The Editor</dc:creator>
				<category><![CDATA[financial crisis]]></category>
		<category><![CDATA[in other words]]></category>
		<category><![CDATA[bubble]]></category>
		<category><![CDATA[employment]]></category>
		<category><![CDATA[history]]></category>
		<category><![CDATA[leverage]]></category>
		<category><![CDATA[macroeconomics]]></category>
		<category><![CDATA[real estate]]></category>
		<category><![CDATA[speculation]]></category>

		<guid isPermaLink="false">http://www.freedom24.org/rationalpost/2006/08/29/chicken-little/</guid>
		<description><![CDATA[&#8220;I can calculate the movement of the stars, but NOT the madness of men.&#8221;
- Sir Isaac Newton, after losing a fortune (£20,000) in the South Sea bubble.
I&#8217;ve been meaning to write about the impending real estate crash for quite some time, but until I get around to it, this piece is worth a read. Roubini is a Professor of Economics at the Stern School of Business at New York  University, and the work below is taken from his blog. Though the prose is somewhat awkward, anyone who produces &#8220;seminal work in international  macroeconomics, global macro policies, financial crises in emerging markets and  their resolution, and the reform of the international financial architecture&#8221; deserves at least a few ...]]></description>
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