How did the dollar shortage occur?

The dog wants to point you in the direction of a great paper over at the BIS. The paper is entitled "The US dollar shortage in global banking and the international policy response" and is written by Patrick McGuire and Goetz von Peter. Here is the paper for your review:

http://www.bis.org/publ/work291.htm

This paper is a great examination and analysis (reconstruction of balance sheets) of data leading up to the shortage of the dollar.

Tell us what you think.......................

Is the safety temporary?

Congrats is in order for the current "Economic Recovery". However, it may be possible that, in economic terms (defined by long periods of time......i.e. years), the recovery could be short lived. It really depends on the time frame in which we define "success" (Dog's Opinion). It may even depend on the economic philosophical lens you observe it through. Here is the article:

http://www.imf.org/external/pubs/ft/survey/so/2009/NEW102309A.htm

Eliminating bias is an important art of scientific objectivism. This could have been lost over the years in analytical thinking. The dog would like to point you in the direction of a great book that might possibly help eliminate biased thinking. Here it is by William Minto, "Logic Inductive and Deductive":

http://books.google.com/books?id=6i8qKpmd4d0C&dq=minto+logic&printsec=frontcover&source=bl&ots=81HpriZcJL&sig=d71uJo7AAF-NH2czEIVboN_HP9k&hl=en&ei=-ZPkStCrOI6StgO7jMGwBA&sa=X&oi=book_result&ct=result&resnum=1&ved=0CAoQ6AEwAA#v=onepage&q=&f=false

Tell us what you think....................

Economics and music??

Due to a great request by an excellent individual......... the dog wants you the reader to come up with a music playlist that describes the current economic situation. Currently, we already have two dedications......here they are:

"The Trees", by Rush


and "Welcome to the Occupation", by R.E.M.



The dog would like to dedicate this live version of "Bittersweet Symphony", by the Verve. What a great movie this was at the time.............




Tell us what you think......................

BIS information update.

The dog wants to point you the reader in the direction of a great working paper over at the BIS. The paper is written by Michael R. King and is entitled "Time to buy or just buying time? The market reaction to bank rescue packages". Here is the paper:

http://www.bis.org/publ/work288.htm

It is a fantastic statistical analysis of the financial intervention especially in the area of "CDS" aka "Credit Default Swaps" spreads IMHO.

Tell us what you think...............................

G20 claims financial intervention worked?

The dog always strives to bring you the reader great information. We have found some great info from the G20 meeting at The Pittsburgh Summit 2009. Here is the article entitled "Leaders' Statement: the Pittsburgh Summit":

http://www.pittsburghsummit.gov/mediacenter/129639.htm

Did the intervention work (short term)? Possibly. Has the financial alchemy put us in a worse long term situation?......time will tell IMHO.

Tell us what you think................................

Not so fast..... on a rapid gold price rise?

The dog has been busy tracking this for quite some time. Now we want to bring it to you the reader. The IMF has approved the sale of up to 403.3 metric tons of gold into the market. The dog theroizes IMHO that even though the dollar may devalue further...... gold prices will remain flat, possibly decrease slightly, or not have a rapid rise in price due to this action (sort of a gold stabilization move in the middle of all this global currency printing). Here is the article from the IMF for your review:

http://www.imf.org/external/np/sec/pr/2009/pr09310.htm

Tell us what you think..............................

Why does this site about economics and behavior exist??

Well, for starters......this site exists for anyone who is interested in learning. Furthermore, no matter what your economic and behavioral beliefs are........ we link you to great information to help you the reader understand what is going on in the micro and macro perspective. Then, armed with this information we hope that it will help you make better decisions in life that yeild positive results. How can you compete with people that have better information than you? Simple. By reading the same information and inter-bank communications they do so you can use it to your advantage. For this, the dog wants you the reader to read up on GAME THEORY(Wiki). Also, read here on GAME THEORY2 (Stanford Encyclopedia of Philosophy). Knowledge is power (Knowing the rules of the game). Executing financial maneuvers faster and better than the next guy will make you a winner of the game (Mastering the game).

Tell us what you think......................