The Radford Free Press – Page 476 – All life is problem solving.

Economics / bailouts, bank reform, banking, Citibank, Goldman Sachs, JP Morgan Chase, regulation /

Who Knew There Were Banks?

July 22, 2009

Economists sure as heck didn’t. “Before the financial crisis, most macroeconomists were blinded by the idea that efficient markets would take care of themselves.They did not bother to put financial markets and the banking sector into their models. This is a major flaw.” Professor Paul De Grauwe, a macroeconomist in today’s Financial Times. It is […]

Economics / bailouts, California, deficits, taxes /

Nationalize California!

July 21, 2009

I ended my post on Friday last week with a tongue in cheek question: should we nationalize California? Given the turmoil that has erupted since the announcement of a budget compromise this morning, nationalization may now be a serious option. “California is a true banana republic – it would be laughable were it not for […]

Economics / banking, Bernanke, consumption, deficits, Federal Reserve Board, inflation, interest rates, stimulus, US government bonds /

Inflation: Real or Imagined?

July 21, 2009

We appear to have entered a new phase of debate about the direction of the economy and the policies we need to use to get ourselves back on our feet. The story so far is that the conservative coalition of right wing politicians, neo-classical economists, and sundry centrist hangers-on have lost every round of discussion […]