The LIBOR Scandal – What Next?

Guest article written for AllAboutAlpha.com – the official publication of the  Chartered Alternative Investment Analyst (CAIA) Association Originally posted at: http://allaboutalpha.com/blog/2012/11/08/andrew-lo-on-the-libor-scandal-and-whats-next/ Finance is a world where your input, output, and value-add are the same, money… and after a while in the  markets, everything becomes just-a-number.   Traders may start their careers excited at the prospect of handling millions, but soon- even billions become just a number, a number that you play with to meet your own- or…

Continue Reading...

When You Can’t Trust Economics

Has Conflict of Interest Created a Check-Mate in the Reporting of Economic Data? In February 2012 The Economist took an astonishing step, removing Argentina from their much respected financial indicators page.   Their rationale being that, “…since 2007 Argentina’s government has published inflation figures that almost nobody believes. These show prices as having risen by between 5% and 11% a year. Independent economists, provincial statistical offices and surveys of inflation expectations have all put the rate…

Continue Reading...

The Moral Hazard of Asymmetric Information

Regardless of whether one agrees with the rationale behind Wikileaks‘ release of thousands of diplomatic cables, one certainty is that their appearance has opened a necessary debate on moral hazard’s in our own democracy. Manifesting Moral Hazard Information Asymmetry is an important concept, usually noted in transactional situations, where one party has more (or better) information than another- creating an imbalance of power (or influence) in a transaction- affecting the outcome.  “Moral Hazard” is a…

Continue Reading...

Speaker