Category: Biz and Econ

Discussion on all things business related.

Wall Street and the Third World | vanityfair.com

Wall Street and the Third World | vanityfair.com:

“The former Communist countries generally turned, after the dismal failure of their postwar system, to market capitalism, replacing Karl Marx with Milton Friedman as their god. The new religion has not served them well. Many countries may conclude not simply that unfettered capitalism, American-style, has failed but that the very concept of a market economy has failed, and is indeed unworkable under any circumstances. Old-style Communism won’t be back, but a variety of forms of excessive market intervention will return. And these will fail. The poor suffered under market fundamentalism—we had trickle-up economics, not trickle-down economics. But the poor will suffer again under these new regimes, which will not deliver growth. Without growth there cannot be sustainable poverty reduction. There has been no successful economy that has not relied heavily on markets. Poverty feeds disaffection. The inevitable downturns, hard to manage in any case, but especially so by governments brought to power on the basis of rage against American-style capitalism, will lead to more poverty. The con?sequences for global stability and American security are obvious.”

(Via Vanity Fair.)

Great and succinct critique on market fundamentalism (“free markets can solve any problem”).

Obama puts critics of financial overhaul on notice – Yahoo! News

Obama puts critics of financial overhaul on notice – Yahoo! News:

“‘It will have the power to set tough new rules so that companies compete by offering innovative products that consumers actually want and actually understand,’ Obama said. ‘Those ridiculous contracts — pages of fine print that no one can figure out — will be a thing of the past. You’ll be able to compare products, with descriptions in plain language, to see what is best for you.‘”

(Via Yahoo! News.)

This is exactly what these companies don’t want.

Krugman vs. Ferguson: Letting the Data Speak – Freakonomics Blog – NYTimes.com

Krugman vs. Ferguson: Letting the Data Speak – Freakonomics Blog – NYTimes.com:

“In fact, the recent increase in Treasury yields is almost entirely due to a reduction in the probability of the deflationary (low nominal interest rates) scenario. Score this round for Krugman.
While Ferguson wrongly diagnosed the cause of the rise in interest rates, he is right that the markets are spooked about the risk of an inflationary breakout. There’s about a 7 percent chance that 25-year interest rates will exceed 10 percent, although surprisingly, this risk was slightly higher back in February. This is a fairly extreme scenario: long-term interest rates have not been above 10 percent since inflation was tamed in the mid-1980’s.”

(Via NY Times.)

Ed Krugman – Stay the Course

Op-Ed Columnist – Stay the Course – NYTimes.com:

“The debate over economic policy has taken a predictable yet ominous turn: the crisis seems to be easing, and a chorus of critics is already demanding that the Federal Reserve and the Obama administration abandon their rescue efforts. For those who know their history, it’s déjà vu all over again — literally.”

(Via NY Times.)

Does anyone pay attention to history?

For The Slavery\Civil War\Reconstruction Buff In You – Ta-Nehisi Coates

For The Slavery\Civil War\Reconstruction Buff In You – Ta-Nehisi Coates:

“I don’t say this to be provocative, but there is no way to get around this–Slavery was big business. The antebellum Southern economy didn’t have slavery as an unfortunate appendage–it was it’s trunk, not a branch. We’re not even talking about the damage done to the slaves themselves. “

(Via Ta-Nehisi Coates.)

Great, great post. Why I read this blog religiously.

Now That’s Drinking the Kool-Aid

Q&A: Microsoft’s Windows marketing chief says Apple’s ‘scared’ | Business Center | Macworld:

“I think [the way] they’re responding to our advertising is a reflection of what’s happening out in the market (both IDC and the NPD Group show Mac sales dropping in the U.S. in recent months).
They’re scared. The Ad Age survey shows how our brand is coming alive through three things: the ads, hitting our commitment to build a fantastic product with Windows 7, and around delivering the truth about the ‘Apple tax’ and the value you get when you go with Windows.”

(Via Macworld.)

It’s hard not to laugh at such delusions. Apple isn’t sleeping on Microsoft, but scared? Jokes. I love the misdirection on the sales figures. Every manufacturer saw their sales slump, except Apple saw it’s sales slump the least. Notice no mention in the interview of the Zune or Windows Mobile versus the iPod and iPhone respectively. Methinks somebody is projecting some fear.

The Ever Spending Story

The Ever Spending Story | The Daily Show | Comedy Central:

The Daily Show With Jon Stewart M – Th 11p / 10c
The Ever Spending Story
comedycentral.com
Daily Show Full Episodes Economic Crisis Political Humor

(Via The Daily Show.)

Jon Stewart’s displays usual genius.

Most Americans Don’t Blame Obama for Economy

Most Americans Don’t Blame Obama for Economy, Poll Finds – washingtonpost.com:

“The number of Americans who believe that the nation is headed in the right direction has roughly tripled since Barack Obama’s election, and the public overwhelmingly blames the excesses of the financial industry, rather than the new president, for turmoil in the economy, according to a new Washington Post-ABC News poll.”

Poll Results

(Via The Washington Post.)

It looks like the public is still in a realistic mood. Still, Obama’s plan needs to start having some effects soon or the public will turn on him.

Doe or Die

An Ultimatum for Carmakers From Obama – NYTimes.com:

“‘And so today, I am announcing that my administration will offer G.M. and Chrysler a limited period of time to work with creditors, unions and other stakeholders to fundamentally restructure in a way that would justify an investment of additional tax dollars; a period during which they must produce plans that would give the American people confidence in their long-term prospects for success,’ Mr. Obama said.”

(Via NY Times.)

If only private shareholders, particularly institutions, would be so activist, we wouldn’t be in a far better position.

The Crisis of Credit Visualized

The Crisis of Credit Visualized on Vimeo:


The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

The Short and Simple Story of the Credit Crisis.

Crisisofcredit.com

The goal of giving form to a complex situation like the credit crisis is to quickly supply the essence of the situation to those unfamiliar and uninitiated. This project was completed as part of my thesis work in the Media Design Program, a graduate studio at the Art Center College of Design in Pasadena, California.

For more on my broader thesis work exploring the use of new media to make sense of a increasingly complex world, visit jonathanjarvis.com.

Support the project and buy a T-Shirt! cafepress.com/crisisofcredit

© Copyright 2009 Jonathan Jarvis

(Via Vimeo.)

Credit crisis in short animated film. Lays it all out quite nicely.