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Category Archives: Economy

Google to the rescue

Investigative journalism has never been a money-maker for newspapers. It’s good for democracy, it makes newspapers into power brokers, and it occasionally sets the national conversation, but let’s be honest, front-page stories about Tiger Woods’ hook-ups sell way more papers than 6,000-word droners about health-care lobbyists. Newspapers were able to produce expensive, time-consuming investigative journalism […]

Fun with graphs

UPDATE: “Traditionally, three sectors have led the way out of recession: automobiles, home building and banking.”

You’re welcome

Goldman Sachs 2009 earnings: $13.4 billion. Government funds received by Goldman Sachs via the AIG bailout: $13 billion. Think about that.

The shoe-shine boy speaks

It is said that Joseph Kennedy got out of the stock market in 1929 – right before the crash – after getting a stock tip from a shoe-shine boy. The theory was that once a bull market sucks in people who have no business being there, some sort of collapse is imminent. On the heels […]

“… and by recovered I mean, apparently re-dipping their balls in gold.” The Daily Show With Jon Stewart Mon – Thurs 11p / 10c Clusterf#@k to the Poor House – Wall Street Bonuses www.thedailyshow.com Daily Show Full Episodes Political Humor Health Care Crisis

Nothing up my sleeve

The longer I’m alive, the more I think economists are the academic version of Gypsy palm readers: They charge you a lot of money to make stuff up about the future, then when it doesn’t work out, you go back to them for more advice. Watch Eugene Fama, founding father of the efficient-market hypothesis, scuttle […]

Sub-prime education

I looked into going back to school recently. I might still do it some day. In some ways it’s hard to see a financial benefit. Cost = ($30,000 annual tuition x 2) + ($40,000 in annual salary foregone x 2) = way more than the benefit I’d gain from Master’s-level government employment (Oh, didn’t you […]

From the most excellent Baseline Scenario: … yes, bankers are like athletes. Their individual contributions are overrated relative to their supporting environments; they are overpaid; they are paid based on where they randomly fall in the probability distribution in a given year; and paying a lot for bankers is no guarantee that your bank will […]

Globalization and the crash

In The Crash of 2008 and What it Means, George Soros makes the most eloquent critique of globalization that I’ve ever read. In a nutshell, he argues that starting in the 70s, rich countries forced Washington consensus austerity measures on poor (“periphery”) countries, while at the same time reserving for themselves the right to enact countercyclical […]

CEO entitlements

During the last 50 years, the ratio of the highest-paid employee’s compensation to that of the lowest paid rose from 24:1 to 275:1. From the New York Times Magazine: Indeed, what has happened with executive compensation … is that a culture of entitlement has apparently become the norm. It’s not a matter of how much […]