June 30, 2010
A "New" Risk to Markets: Inebriated Exuberance
A British financial regulator recently revealed that a U.K. oil trader pushed oil prices up $1.65 per barrel in a little over two hours of trading while he was drunk. He also apparently lost his firm $10 million.
This story provides a couple good reminders. First, there are lots of things that are a really bad idea when drinking. Driving tops this list, and trading and texting (the new dialing) are some others to clearly avoid. Second, markets are subject to all sorts of influences, even those of market participants under the influence. In the case, it wasn't irrational exuberance, it was inebriated exuberance.
June 30, 2010 | Permalink