Everything written about the economic crisis overlooks its true nature

Summary:   This site opened in November 2007 with three posts about this crisis, describing it as End of the post-WWII geopolitical regime.  Until we and our leaders understand this, we can neither appropriately respond to events nor prepare for future problems.  While the title overstates the situation (there are many who understand), it captures the key mental barrier we … Continue reading Everything written about the economic crisis overlooks its true nature

This financial crisis is the transition to a new world; like birth, it is painful

Summary:   This is an attempt to gain a historical perspective on our time, speculation about our present and future -- seen in terms of past cycles. Here is a surefire way to get economists' attention:   tell them that we are only in the second "inning" of this downturn.  Their incredulity results from belief that the trough is near … Continue reading This financial crisis is the transition to a new world; like birth, it is painful

Expect little or nothing from meetings like the G20 – or the Obama Administration

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 … Continue reading Expect little or nothing from meetings like the G20 – or the Obama Administration

A look ahead to the end of this financial crisis

Summary The global financial situation is complex and wreathed in fog, but at least two things are clear. The financial crisis consists of fore-shocks before the main event. A new geopolitical order will mark the solution of this crisis; it lies far in the distance.  This post examines the grim details of item #2.   The slowdown might … Continue reading A look ahead to the end of this financial crisis

A quick guide to the “Emergency Economic Stabilization Act of 2008”

There are only five things of significance about the Emergency Economic Stabilization Act of 2008 (EESA), in my opinion (although we do not yet have the final version): Drafted in haste, it will have many and serious unintended consequences. Its provisions are largely irrelevant to our economic problems, intended to treat the symptoms. Our leaders have … Continue reading A quick guide to the “Emergency Economic Stabilization Act of 2008”