Hugh McGuire

publishing, technology, media, philosophy, a bit of politics.

Category: economics

Banks: Market Caps

Good, safe investment these banks, eh? The blue circle represents market capitalization of banks in Q2 2007; the little green peas are the same banks’ market caps in Jan 2009: [via zig]

Economic Crisis & IP Policy

Canada’s feisty copyright lawyer, Howard Knopf, explores how good intellectual policy could help Canada thru the economic mess: Most governments are now taking decisive steps towards decisions on and implementation of major stimulus/investment packages to rescue, resuscitate and even reinvent national and international economies. Canada, apparently, is going about this in its own way, with […]

The 7.4 Trillion Bailout

Remember when you thought $700 Billion was a lot of money for the US government to chip in to the economy? Now multiply by 10. From Bloomberg: The U.S. government is prepared to lend more than $7.4 trillion on behalf of American taxpayers, or half the value of everything produced in the nation last year, […]

Question

What happens if (or, rather, when) China decides to stop financing US debt to create export demand for its manufactured goods, and instead starts to spend that money on creating consumer demand in China?

Schiff Calls It Right

Peter Schiff gets it right in 2006/07 about the US economy, and gets howled off the stage by the other “experts.” What’s funny is how sensible his arguments are (there is no real wealth in the US, no production, no savings; just foreign & consumer debt), and how they are totally dismissed by the rest […]

Outlook Bleak for China & the Rest of Us

One part of the recent economic picture has been the too-cheap credit that has kept us all feeling really rich for the past decade. In the most famous story about this problem, cheap credit meant many people bought houses they couldn’t afford, and we all know what happened there. When the bad mortgage market collapsed […]

Greenspan the Great

How did we end up in this mess of an economic meltdown? The answer is pretty simple: too much cheap credit, and no regulation of derivatives. Probably more than any other individual, Alan Greenspan is to blame for both. He was Clinton’s and then Bush’s wizzard Fed Reserve Chairman, who waved the wand of reduced […]

German Bank Goes Poof

From the BBC: Germany’s finance ministry has agreed a 50bn euro ($70bn; £40bn) plan to save one of the country’s biggest banks. [more...]

worse before it gets better?

Washington Post reports, the Director of the Congressional Budget Office warns that the bailout could cause things to get worse. Why? Because it might expose how bad things actually are under the hoods of the world’s financial powerhouses: During testimony before the House Budget Committee, Peter R. Orszag — Congress’s top bookkeeper — said the […]

doom, gloom

From Harvard professor of economics and former IMF chief economist, Kenneth Rogoff, in the Financial Times: Were the financial crisis to end today, the costs would be painful but manageable, roughly equivalent to the cost of another year in Iraq. Unfortunately, however, the financial crisis is far from over, and it is hard to imagine […]