Making Sense of the Global Financial Market: 'Trust Conspiracy Theories'

Abstract

The most crucial fact about the financial market is that finance is an information industry and asymmetry is a prevalent characteristic of information. Information is unevenly distributed, and the more valuable the pieces of information, the more unevenly they are distributed. This inherent information asymmetry is often ignored, as financial market regulations ostensibly aim at creating a perfectly competitive environment and providing participants with level playing fields by making “equal” information accessible. This paper argue that this information asymmetry wide open a room for conspiracies and this forms a basis of so many "wrong predictions" based on "fundamentals" in the global financial market.

Keywords: Global Financial Market, Conspiracy Theory, Information Asymmetry