Money quotes: "Essentially, it says that financial markets have built-in biases which have an impact not only on prices but also, in extreme times, the fundame

Money quotes: "Essentially, it says that financial markets have built-in biases which have an impact not only on prices but also, in extreme times, the fundamentals themselves. In such moments, market events affect as well as reflect supply and demand." "But this crisis is profoundly different from its predecessors, he argues—at least, all those since the Depression—because two bubbles are coinciding: a “straightforward” one in housing, pumped up by low interest rates in the wake of the dotcom collapse; and a longer-term, more complicated “super-bubble” fed by globalisation, deregulation and decades of credit expansion, which is taking in commodities, currencies and more besides." “[S]hort US and European stocks, US ten-year government bonds, and the US dollar; long Chinese, Indian and Gulf States stocks and non-US currencies.”