ScienceDaily (Sep. 26, 2008) — Mahmoud El-Gamal, chair of Rice University’s economics department and Amy Myers Jaffe of Rice University’s Baker Institute are near completion of a forthcoming book, tentatively titled “Oil, Dollars, Debt and Crises.” The book closely examines the world financial marketplace. “It’s a book about the petrodollar and the worldwide financial system,” said El-Gamal.* More
Month: December 2009
Economist Says Current Financial Crisis Is First And Foremost A Crisis Of Confidence
Posted by – December 19, 2009
2010 economy ‘looking good’
Posted by – December 18, 2009
The Chinese economy will grow by more than 8 percent in 2010, despite lingering uncertainties in the global market, a leading Chinese economist predicted.
Fan Gang, director of the China National Economic Research Institute and a member of the money policy committee of the People’s Bank of China, is confident that the country can meet its GDP growth target of 8 percent this year and will keep the momentum of the economic recovery next year.
He attributed the strong economic growth to the government stimulus package, rising investment in property and industrial sectors as well as a growing trade surplus.
China’s 4-trillion-yuan ($585 billion) stimulus package, mainly on domestic investment and consumption, is shoring up the economy, with manufacturing showing more signs of recovery, according to the State Council, or Chinese cabinet .
“Investment in real estate so far this year has almost fallen to its lowest level for years,” Fan said, “yet money has started to flow into this sector and will increase quickly next year, making it a significant source of GDP growth.” More
Over-Consumtion is a Straight Way to Crisis
Posted by – December 18, 2009
New trendy “Do The Green Thing” published an survey. It show how much people spend on completely unneeded staff.
In 2008, £1.7 billion was spent on unwanted Christmas presents
Each person will spend an average of £435 on Chrismas gifts
Over-consumtion leads to extra garbage and CO2 emissions. More
Fundamental driving forces of the financial crisis
Posted by – December 15, 2009
It is superfluous to note on this blog that the world economy is passing through the most severe financial crisis since 1929.[1] Its results are also beginning to be well understood: the era of increasing deregulation has ended and instead increased, in the US very large scale, state intervention in the economy has begun.[2]
But what type of crisis is this – which greatly affects what its eventual outcome will be? More
Why Constitution Matters in Financial Crisis
Posted by – December 8, 2009
Regardless, as the imminent unwind occurs (not if – when), it is always the equity tranche that will take the first loss, despite the novel development of the creeping equitization concept for companies such as Citigroup (and soon Bank Of America) where dilution and value destruction of senior capital tranches is only voluntary because the administration deems it so – the loaded gun of total system collapse pointed at one’s temple can be a persuasive mechanism.
Today’s Question: How will Dubai’s debt default affect the world economy?
Posted by – December 3, 2009
Fundamental Reason for Current World Economic Turmoil
Posted by – December 3, 2009
What is the fundamental reason for current world economic turmoil? It is a quadrillion dollar question. Contrary to popular perception, the answer is not US housing crisis or exotic derivatives such as CMO’s and CDO’s or high oil prices or cheap dollar. The fundamental reason is lack of trust. People don’t trust the banks with their hard earned money. Banks don’t trust people to lend money. Investors don’t trust the CEO’s and CFO’s of public companies to invest in them . Business leaders don’t trust the political establishment and political leaders don’t trust private enterprises.Finally people don’t trust their elected officials and public institutions. It is a evil cycle: Classic chicken Egg problem. More