{"id":9894,"date":"2011-05-06T08:27:37","date_gmt":"2011-05-06T07:27:37","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=9894"},"modified":"2011-05-06T08:27:55","modified_gmt":"2011-05-06T07:27:55","slug":"so-much-for-rational-markets","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2011\/05\/06\/so-much-for-rational-markets\/","title":{"rendered":"So much for rational markets"},"content":{"rendered":"<p>As <a href=\"http:\/\/www.ft.com\/cms\/s\/0\/6e573da6-7743-11e0-aed6-00144feabdc0.html#ixzz1LYS76IwC\" target=\"_blank\">the FT notes:<\/a><\/p>\n<blockquote>\n<p>A record plunge in oil prices led the sharpest sell-off in commodities in two years as investors fled the market amid mounting concern over the strength of the global recovery.<\/p>\n<\/blockquote>\n<p>So much for rational markets working on the basis of rational\u00a0expectations.<\/p>\n<p>Yet again we've been scrwed by irrational\u00a0expectations\u00a0of greedy speculators.<\/p>\n<p>The\u00a0consequence\u00a0is high inflation (thank goodness the Bank of England did not respond), personal misery as\u00a0people\u00a0have found it harder and harder to make ends meet, excessive profiteering (not\u00a0Shell's\u00a0profits) and now the long term\u00a0impact\u00a0of having an excessively priced Glencore share issue\u00a0dumped\u00a0on our pension funds.<\/p>\n<p>Let's not pretend we have rational markets.<\/p>\n<p>We just have a system of blatant\u00a0exploitation.<\/p>\n<p>And it's in need of\u00a0regulation. But instead we\u00a0applaud\u00a0it.<\/p>\n<p>To describe this as the economics of insanity is being too kind.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the FT notes: A record plunge in oil prices led the sharpest sell-off in commodities in two years as investors fled the market amid<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2011\/05\/06\/so-much-for-rational-markets\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-9894","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/9894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=9894"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/9894\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=9894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=9894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=9894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}