When the Emperor Was Dying
Keynes realized almost a century ago that all markets are psychological. The current crisis is proving how right he was, and how tricky a role "just words" play in the ongoing drama.
Keynes realized almost a century ago that all markets are psychological. The current crisis is proving how right he was, and how tricky a role "just words" play in the ongoing drama.
President-elect Barack Obama holds an unprecedented meeting tomorrow with the nation's governors to outline key steps that need to be taken to revive the nation's economy.
What has changed most in the economic crisis is the way that the U.S. is viewed, perhaps permanently. For all the talk in past year about the shifting balance of power globally, until now it has been just that -- talk.
Can you imagine having to explain that you're unemployed to the people you see only once a year?
A bad economy will cause increased defaults in commercial real estate, but nothing even approaching what happened in the residential world.
The good news is that, after 15 years of being overvalued, the S&P 500 is finally priced to deliver an average long-term return: about 9%-10% in nominal terms and 6% after adjusting for inflation.
The way out of our crisis is to limit further the influence of government over the economy, so that even if someone could afford to buy political influence, there would be very little to sell.
It's worth it for non-economists to better understand how got into this mess -- and how to get out of it.
It is the American dream to make a rush toward fortune. In 1849, people swarmed to California for gold. In the late 1920s, people rushed to the stock markets when margins were as low as 10%.
Mr. Claus, age unknown, offered no specifics about how he would use the government funds, asking only that the Congressmen simply "believe in" him.
Obama presented his economic team -- all protégés of Robert Rubin -- just as the Treasury was pumping out billions to rescue Citibank -- which featured Rubin as chair of its executive committee. Is this the change we need?
The underlying cause of the current recession is the pervasive ideology of self-interest that has guided President Bush's administration and permeated mainstream American ethics.
Instead of spending money on more band-aids, a revised Constitution with a health care amendment would give direction to a unique American purpose and, over time, solve an historic problem.
We need a bailout of the auto industry to give the new contracts and the new automotive products a chance. And then we need to address the larger question about the auto industry, and about American industry in general.
There is no denying the plain fact that only progressive remedies, of large scale public spending and stringent government regulation, will fix what's broken.
It's Judgment Day. Rubin needs to get a pink slip and stand on the unemployment line with the vast sea of people he helped put there.
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They national council of economic researchers declared that we have been in recession since 2007......
main street could have told you that in 2007.....this is a joke. now that the dow is trouble and the fat cats are losing dough we admit there is a recession....how long will it take to admit to a depression.....do we need bread lines first? if so, maybe the economic council should start researching food banks....we are here. TAKE A LOOK AROUND YOU.
When the Local Nightly News expands their normal lead-in of body-counts from civil strife to one half hour. Then you'll know.
When Local politicians assign your neighborhood it's day to pick up Government cheese, butter and body armor. Then you'll know.
When the shrieks of the vulnerable exceed the rated capacity of your earmuffs to silence them. Then you'll know.