“Well what does it all!”
Would a factory worker from the early years of the last century feel that we nowadays live in a financial crisis? I do not think so. This factory worker sees unprecedented wealth. Things that were inaccessible to him in the last century today are common. The TV, a car, a second car and a high [...]
Scarcity of goods: ‘El crash del 2010’
Are there any periods in which the general ideas about the economy are changing? Yes of course! We see economies come and go and ideas on how an economic system must be completed, they are as sensitive as fashion. But this boom-bust evolutionary states of the economy, can that be calculated? Can we predict this [...]
“Watch your back Europe”
Something is wrong! Something is wrong with the way the dollar stay strong as a global trading currency survive one storm after another. There has been a bookstore written about the falling dollar and widening of the U.S. public debt. Yet know the dollar continues to survive. Has it all to make with the power [...]
Stressed? No, hyper-nervous!
Europe is following the American stress tests for major banks. What happens if the economy falls 3%? In one simulation, the banks face rising interest rates, falling currencies and stagnant economic activity. Are European banks able to survive the stress test? According to European Bank President Trichet, it is!
Last Thursday, the ECB president did say [...]
Neo-Keynes! “A new period in world history
The golden age of deregulation and neo-liberal thinking is gone forever. Down with free markets. We are going back to collective regulation of the markets. This week, the Senate of the U.S. agreed on how the banking industry regulates and how this neat dog keeps walking next to the boss. It is the beginning of [...]
The bulls have to laugh
“A crisis!” Is there a crisis? Last week the bulls had a good laugh at all those who think that a second economic crisis is breaking out. A successful loan to Spain proves that the Bulls are right. There is enough confidence in financial institutions, and Europe has solved the problems well. So we can [...]
Payback time
What goes around comes around! It was the investment bank Goldman Sachs who invented the credit default swaps. This bank has also directly been aware of the dangerous side of these mortgage insurance policies. Goldman came out as the winner of the credit crisis in 2008, the only bank that was still standing firm. But [...]
