Tag Archives: GFC

Bubble trouble: not an easy money problem

The notion that “easy money” created asset booms is levelled (famously by Austrian school economists such as von Mises and Hayek) against the 1920s boom and by a range of commentators about the Great Moderation boom. In both cases, the Fed (dominated by Benjamin Strong as New York Fed Governor up to 1928 and by Alan Greenspan as Fed Chair 1987-2006) is held to be to […]

Time enough for success

Skepticlawyer’s excellent post on the GFC examines the financial crisis. The post below is concerned with the time period for monetary policy. While, as I note below, the collapse in total spending clearly worsened the GFC, this post is more about how to avoid or minimise recessions and, particularly, events such as the Great Recession. […]

Being in a different place

Australia has a long record of suffering more adversely than other economies from economic shocks.  We had a bad 1890s Depression, a very bad 1930s Depression (though our recovery was notably quicker than the US’s), a 1970s suffering particularly entrenched stagflation. Then came two decades of economic reform. The first major external economic shock the […]

Debt and boom

The slogan for this post is: don’t think debt, think safe assets. (This post is partly provoked by this post by Paul Krugman responded to by Scott Sumner and by Marcus Nunes.) In my Debt, Doom and Despair post I noted that a hugely debt-burdened post-Napoleonic Wars UK (where the national public debt was probably about […]

Don’t mention the A-word

The Eurozone, the US, Japan and the UK are all suffering prolonged economic stagnation. [You can see how serious it is in the US here.] It is sensible to suggest that they are doing something (or perhaps many things) wrong and need to change policy. What is not sensible is ignoring a developed world economy […]

Goldman Sachs – The “Muppet” Show

A manager at US banking giant Goldman Sachs in London has quit, saying he could no longer work there “in good conscience”. Greg Smith, who headed Goldman’s equity derivatives business in Europe, said it was common to hear talk of ripping off their “muppet” clients. “The environment now is as toxic and destructive as I […]

Ghost fleet

SL has done a few posts about the ghost town that is Detroit. The goddess of fortune is fickle, and deserts towns at will. Apparently she also deserts ships. Thousands of tankers and container ships stand in the waters outside Singapore, unchartered. With the global economic downturn, there just isn’t the same demand for shipping […]

The Amazing Disappearing Assets

Anyone who has a superannuation fund or the like has probably watched their assets drop in value to a massive degree over the last year or so. Right now I’m glad I don’t have my money tied up in shares. The drop has been so sharp that it has produced some interesting legal problems. Take, […]