By Steve Keen, Associate Professor of Economics & Finance at the University of Western Sydney and author of Debunking Economics: The Naked Emperor of the Social Sciences The US Senate should not reappoint Ben Bernanke. As Obama’s reaction to the loss of Ted Kennedy’s old seat showed, real change in policy only occurs after political […]
Read more...By Satyajit Das, a risk consultant and author of Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives John Cassidy (2009) How Markets Fail: The Logic of Economic Calamities Like Mark Anthony with Julius Caesar, many have now come to bury the Efficient Market Hypothesis (“EMH”) rather than praise it. Amusingly, […]
Read more...By Richard Alford, a former economist at the New York Fed. Since then, he has worked in the financial industry as a trading floor economist and strategist on both the sell side and the buy side. A week ago, in Atlanta, Bernanke responded to his critics, including John Taylor of Taylor Rule fame (the Taylor […]
Read more...By Marshall Auerback, a fund manager and investment strategist who writes for New Deal 2.0. Speaking of President Obama, Karl Rove writes, “After a year of living in his fiscal fantasy world, Americans realize they have a record deficit-setting, budget-busting spender on their hands.” Well, given his history with former President Bush, it certainly takes […]
Read more...Last week, Pimco’s CEO said that he doesn’t think we’ll have a v-shaped recovery, and that economists, advisors and managers who have been counting on a v-shaped recovery are ignoring the economic fundamentals in our economy. Now, Paul Krugman is agreeing: Plunging prices of houses and CDOs … don’t produce any corresponding macroeconomic silver lining. […]
Read more...By Satyajit Das, a risk consultant and author of Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives Keynes: The Return of the Master By Robert Skidelsky (2009) John Maynard Keynes is having an excellent crisis. Dead for over a half a century, the British economist is enjoying a comeback as […]
Read more...By Edward Harrison of Credit Writedowns Yesterday, I indicated I would write a few thematic posts as a look back at some of the more important economic topics that this credit crisis has uncovered. Tying posts together in a theme definitely gives a better holistic view of a the themes than the posts do in […]
Read more...By Edward Harrison of Credit Writedowns. As Yves is in light posting mode, I wanted to run these thoughts by you here at Naked Capitalism regarding stimulus and the role of government in a debt-deflationary environment. As we approach the new year, I have decided to write a few thematic posts as a look back […]
Read more...A provocative report by the New Economics Foundation has made an effort to put a price tag on the broader costs and benefits of various types of work. As quoted in the Financial Times (hat tip Swedish Lex), the leader of this effort put it: Pay levels often don’t reflect the true value that is […]
Read more...By Marshall Auerback, a fund manager and investment strategist who writes for New Deal 2.0. In 1729, Jonathan Swift wrote an essay — “A Modest Proposal” — satirically suggesting that the impoverished Irish ease their economic troubles by selling children as food for rich gentlemen and ladies. In that spirit, we would like to assist […]
Read more...By Edward Harrison This quote from President Obama comes via Brad DeLong: We’ve got a long- term structural deficit that is primarily being driven by health care costs, and our long-term entitlement programs. All right? So that’s the baseline. Now, if we can’t grow our economy, then it is going to be that much harder […]
Read more...Normally I relegate items that I deem important, but to which I have comparatively little to add, to Links and label as “Today’s Must Read.” Even thought this offering falls into that general category, it is far and away the most important “Must Read” I can recall coming across, and so I am highlighting it […]
Read more...Tim Duy, my favorite Fedwatcher, has a very good post up which combines a general reading on the state of the consumer and then segues to the Fed’s take on matters. The section I found particularly telling: As has already been widely noted, the minutes of the most recent FOMC meeting reiterated the Fed’s eagerness […]
Read more...Reader Doug Smith was not happy with an article in the Christian Science Monitor yesterday, titled, “Does US need a second stimulus to create jobs? His remarks: Could you, Edward or someone consider reading this article and responding to it? My sense is that it perfectly captures ‘conventional wisdom’ and, in that sense, is a […]
Read more...By Edward Harrison of Credit Writedowns Barack Obama has now come clean about his thinking on why his administration has decided to focus first on reducing the deficit and next on jobs. He fears a double-dip recession will occur if foreigners lose confidence in the U.S. dollar, causing interest rates to spike. This is nonsense […]
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