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Entries from February 2009

Not the end of free market capitalism, but the end of the unregulated version

February 19th, 2009 · No Comments

Nouriel Roubini, aka Dr. Doom, was the economist who predicted most of the present mess years ago. He has still something valuable to teach us. Quite a few of these things we’ve argued here before, so we agree. But we have to be careful not to throw out the child with the bathwater. Markets, especially [...]

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Tags: Credit Crisis · Public Policy

Management Ideas 3: Web 2.0 for business?

February 19th, 2009 · 2 Comments

McKinsey did a survey on the uses of the new collaborative (so called Web 2.0) applications like blogs, podcasts, and wiki’s. Here is a quick overview of their findings, and some comments from us.

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Tags: Management Ideas

Two instruments left..

February 19th, 2009 · No Comments

The New York Times is not the only place with the best columist (Paul Krugman and Thomas Friedman). The Financial Times of London, an excellent newspaper, has Lionel Brittain and Martin Wolf. Here is one of Wolf’s gems, one of the best analysis of what needs to be done you’ll come across..

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Tags: Credit Crisis · Public Policy

Deflationary spirals and low-balling Krugman

February 17th, 2009 · 1 Comment

Funny to see how nobody can deal with the arguments of Paul Krugman, who argues the government is the only party in the economy who can spend enough to prevent a deflationary spiral from which it is very hard to escape. Here is one attempt, but the writer, a businessman and investor, has to create [...]

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Tags: Credit Crisis · Public Policy

China prepares for energy crunch

February 16th, 2009 · 4 Comments

We already posted some remarkable material from Simmons and co, who argued with hard figures that oil production has peaked in 2005. Now, the International Energy Agency (IAE) is warning that next year will see an oil crunch as demand recovers. China, meanwhile, is not sitting still..

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Tags: Credit Crisis · EFUT · IOC · Natural Gas

Will they ever learn?

February 16th, 2009 · 1 Comment

Banks are rapidly turning into the real villains. These once masters of the universe not only had a large part in triggering this recession by gambling with other peoples money and walking a way with billions, they kept on paying large bonuses even in the midst of the wreckage and on the receiving end of [...]

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Tags: Credit Crisis · Public Policy

Japanese crash

February 16th, 2009 · No Comments

Anyone seriously thinking we don’t need radical measures to get us out of the economic slump and that talk about the seriousness of the economic situation is just scaremongering hasn’t paid attention to what’s happening in the world’s second largest economy…

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Tags: Credit Crisis · Public Policy

Kristof on Education

February 15th, 2009 · 1 Comment

We’ve already alluded to this excellent article by Nicholas D. Kristof in our last column, but it really deserves a full mentioning.

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Tags: Uncategorized

Which is the real catastrophe?

February 15th, 2009 · 1 Comment

The editorial pages of the Wall Street Journal (otherwise an excellent newspaper) are usually politically situated to the right of Attila the Hun. That’s ok with us (live and let live), but they urgently need an economics 101.

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Tags: Credit Crisis · Public Policy

Do tax payers need to bail-out the financial system?

February 14th, 2009 · No Comments

Often, the best first approach to a difficult situation is to list as many ‘stylized facts’ as one can think off. Here is one ‘stylized fact’ to dominate all others: no economic recovery without a functioning banking system. It’s a simple truth, there will not be many people disagreeing with it (hence it is a [...]

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Tags: Credit Crisis · Public Policy