Why asset price bubbles are important

Jeremy Grantham of GMO explains the importance of asset price bubbles and the risks of another sets of bubbles forming at the moment.

http://link.brightcove.com/services/player/bcpid71778049001?bclid=69928231001&bctid=79128759001

Investors fooled by randomness

http://www.newyorker.com/video?videoID=73450504001

George Soros: China's role

"The prevailing exchange rate system is lopsided. China has essentially pegged its currency to the dollar while most other currencies fluctuate more or less freely. China has a two-tier system in which the capital account is strictly controlled; most other currencies don’t distinguish between current and capital accounts. This makes the Chinese currency chronically undervalued and assures China of a persistent large trade surplus."

"The imbalances in the US are the mirror image of China. China is threatened by inflation, the US by deflation. At nearly 70 per cent of GDP, consumption in the US is too high. The US needs fiscal stimulus enhancing competitiveness rather than quantitative easing that puts upward pressure on all currencies other than the renminbi.
The US also needs the renminbi to rise in order to reduce the trade deficit and alleviate the burden of accumulated debt. China, in turn, could accept a higher renminbi and a lower overall growth rate as long as the share of consumption is rising and the improvement in living standards continues."

"Whether it realises it or not, China has emerged as a leader of the world. If it fails to live up to the responsibilities of leadership, the global currency system is liable to break down and take the global economy with it. Either way, the Chinese trade surplus is bound to shrink but it would be much better for China if that happened as a result of rising living standards rather than a global economic decline.
The chances of a positive outcome are not good, yet we must strive for it because in the absence of international cooperation the world is heading for a period of great turbulence and disruptions."

http://video.ft.com/v/628298092001/George-Soros-warns-of-trade-wars-and-double-dip

The Flash Crash revisited

http://video.ft.com/v/626857086001/Flash-crash-report-no-prescription

Smart faces, smart jobs!

James Surowiecki: Talent and Context in a Random World

http://fora.tv/2010/10/02/James_Surowiecki_Talent_and_Context_in_a_Random_World#James_Surowiecki_The_Luck_of_Having_A_Good_Face

ETF Collapse Concerns Unfounded

ETF Collapse Concerns Unfounded

Vanguard's Davis: Expect Muted Returns for Bonds

Vanguard's Davis: Expect Muted Returns for Bonds

Economy and Market Destinies Not the Same

Economy and Market Destinies Not the Same

Zweig: Prepare for 'Meflation'

Zweig: Prepare for 'Meflation'

Zweig: Tactical Asset Allocation Has a Lot to Prove

Zweig: Tactical Asset Allocation Has a Lot to Prove