By Ben Wright – No one is saying the investment industry is entirely to blame for these problems.
They are rooted in human behavior and have in recent years been exacerbated by a raft of misguided regulation. Most investors are risk-averse, short-termist and congenitally unable to spot a bandwagon without suffering the urge to climb aboard.
This combination is not particularly conducive to making sensible investment decisions. Unfortunately, over the past decade a number of accountancy rules and regulations have been introduced that accentuate these human foibles rather than trying to correct for them. more> http://tinyurl.com/l8wdvfz
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- America’s recurring nightmare: Big banks are still too big to fail, Michael Winship, BillMoyers.com / salon.com
- Germany close to recession as ECB admits recovery is weak, Ambrose Evans-Pritchard, telegraph.co.uk
- Italy’s Second-Quarter GDP Declines, Showing Recession, Chiara Vasarri, Bloomberg
- Draghi’s Dithering Threatens Europe, Bloomberg
- Asia’s next crisis could be a flood of debt, William Pesek, todayonline.com