President Bush in an interview with CNN’s Candy Crowley (broadcast 16 December on Lou Dobb’s Tonight) — Excerpt: I feel a sense of obligation to my successor to make sure there is not a, you know, a huge economic crisis. Look, we’re in a crisis now. I mean, we’re in a huge recession, but I …
President Bush: “I’ve abandoned free market principles to save the free market system” Read More »
More about the Obama Administration’s team, whose motto seems to be “You cannot believe in Change.” I recommend reading the full article. “What Barack Obama Needs to Know About Tim Geithner, the AIG Fiasco and Citigroup“, The Institutional Risk Analyst, 24 November 2008. It’s worth reading in full. Here is their conclusion: By embracing Geithner …
“What Barack Obama Needs to Know About Tim Geithner, the AIG Fiasco and Citigroup” Read More »
Summary: Two bright lights shine amidst the torrent of bad economic news. First the G20 meeting. Second, President-Elect Obama’s new team at the Treasury Department. I suggest that we avoid disappointment by expecting little from either. We are far “off the map”, with little in history or economic theory to guide us. Only time and …
Expect little or nothing from meetings like the G20 – or the Obama Administration Read More »
Professor Nouriel Roubini is a “Dr. Doom” (source: NY Times) for our time. His forecasts are both analytically clear and terrifying, as in “I fear the worst is yet to come” (The Times, 26 October 2008). As such he provides a clear reference point against which to compare other scenarios. How does my view contrast with his? …
Summary: we have a bad case of debt deflation. Although well-described by economists since the 1930’s, this malady was not taken seriously by the mainstream of the profession. Now we have it. This post describes this macroeconomic illness (which will help you better understand events), and possible cures. The diagnosis is simple; the cures less so. …
