#1 – Media decides what to report

You learn about uprising in Libya because the media reported it. You learn about earthquake in Japan because it is reported in the papers. It is impossible to report everything under the sun on any given day. Media prioritizes the news which they think would attract the most eyeballs. Likewise for finance and business news. They report what they think you are interested to know. Hence, you can only know as much as what the media reports.

#2 – Inequality in social networks

Some people are more sociable than others. Some build a vast network of friends. Network itself is capital. The more people you know and the more people know you, the wealthier you are. This is because you leverage on the relationships for certain advantages. If you have good connections with certain company employees or fund managers, you get information that …