Tottering pillars of subprime castles in the air

Share markets across the globe have gone into a tizzy. Central banks on either side of the Atlantic and beyond have been forced to launch one of the most coordinated operations ever to breathe life into a market choking on a tightening credit squeeze.

As the world gropes for answers to understand the real magnitude of the earthquake rocking the financial world that epicentered in the US housing mortgage sector, the crisis brings home an uncomfortable truth: there is actually very little information in what we call the information age.

For, what we see at play today from New York to Hong Kong is nothing but the market-destroying power of information asymmetry.