By Edward Hadas
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
The shale oil boom in the U.S. may top media headlines over the holiday shopping blitz this day after Thanksgiving in the U.S.
By Edward Chancellor
The author is a guest columnist. The opinions expressed are his own.
What is the glue which holds an economy together? Disciples of Adam Smith would argue that self-interest serves as the organising principle. The problem with this way of thinking is that it overlooks the fact that man is not an island unto himself. He is a social animal, who must have constant dealings with other people. Besides, according to John Maynard Keynes, it is impossible to pursue our self-interest rationally, because we don’t have enough information to make probabilistic judgments about the future. Instead, we must rely on irrational animal spirits as a spur to action.
Volatility has cooled for the moment, even as the U.S. Federal Reserve lifted its quantitative easing program on Wednesday, but Europe, China and Brazil are still concerns for financial markets, according to a veteran investment manager.
A dip in 30-year mortgage rates to their lowest level in more than a year and stronger U.S. housing data on Friday appeared to be the green shoots of the next phase of U.S. economic recovery, that being the housing market.