Efficient Markets and Hopes of Recovery

• Tentative signs of economic recovery. and Oil prices resumes their rollercoaster ride.
• Warning over getting carried away by recovery as unemployment rises
  
• Efficient Market Hypothesis - The idea that markets will correctly predict stock prices and avoid irrational decision making. Needless to say the great recession has punched another hole in this theory. Yet, there are still some who try to maintain markets will rationally and correctly price stocks. See also Psychology of bubbles
  
• How Will sustained government borrowing impact on Economic Growth? - An interesting question. Note sustained government borrowing is different from cycling borrowing in a recession. It seems this is an issue most developed countries will have to face in the 'hangover' of the great depression.
• A British Bounce ? - (P.Krugman blog) There are signs that the bold economic policies has enabled the UK recovery to be better than our EU counterparts.