Asian Stocks Advance on Europe Optimism
By Shani Raja and Yoshiaki NoharaAsian stocks advanced for a second day as optimism European officials will protect banks from the region’s debt crisis boosted the earnings outlook for lenders and exporters.
Comment: The so-called "euro crisis" has really been a farce, a piece of theater enacted by commentators, journalists and investors who actually should know better. A lot of dumb ink has been shed. Yet what we must keep in mind is that with financial markets self-realizing prophecies can happen. As dumb as these prophecies may appear to the rational mind, the risk is always present that the silliest of the prophecies gains most of the attention and that it will be more likely get repeated in the press and in the end ever more adherents will follow the dumb prophecy because in the meantime it has become common knowledge and has gained the status of being almost certain.