The Cost of Capitalism: Understanding Market Mayhem and Stabilizing our Economic Future 5 pot

... crisis, the collapse of Japan Inc. after the stock market crash of 1990, the Asian crisis of the mid-1990s, the fabulous technology boom/bust cycle at the turn of the millen- nium, and the unprecedented ... incor- rectly, that there was no theoretical justification for the visible hand of government to come to the rescue of banks and other financial institu...

Ngày tải lên: 20/06/2014, 20:20

... excessive uses of risk and concentration of investment. And the interplay of these two flaws explains each of the major economic declines of the past 25 years. In summation, the savvy analyst must be of two ... but the competition from the new commodity, the new technology, the new source of supply . . . which commands a decisive cost or quality advan- t...

Ngày tải lên: 20/06/2014, 20:20

... when your debts are in dollars, and the dollar jumps versus your currency? The level of your debt—valued in your currency—leaps relative to the value of your earnings. Once again we find ourselves ... Cisco Systems (CSCO) 30 0.44 6.9 3. 05 42.08 2 Microsoft (MSFT) 25 1.60 5. 2 8.33 77 .55 3 Intel (INTC) 20 2.32 3.3 7. 75 48.01 4 Oracle (ORCL) 25 0 .56 2.8 1 .58 14.71 5 Int...

Ngày tải lên: 20/06/2014, 20:20

... kick the football through the uprights and join the crowd of believers. And I hem, Doc, and I haw. And, I twist and turn. But the crowd grows more rest- less, and her gaze is enticing, and I ... in terms of global savings. I saw it as easy money emanating from the 130 • T HE C OST OF C APITALISM to the powers of the computer and the cell phone, and env...

Ngày tải lên: 20/06/2014, 20:20

... back 150 • T HE C OST OF C APITALISM had with the rest of the financial system, the Treasury/Federal Reserve plan wiped Bear off the map and yet minimized the adverse conse- quences to the system. Lehman ... CDO market had the implausibly high value of $55 trillion. It amounted to a mountain of wagers about corporate bonds that dwarfed the value of the underly...

Ngày tải lên: 20/06/2014, 20:20

... academia and Washington. Minsky, unruffled, offered the world the monograph John Maynard Keynes in the fall of 19 75. For Minsky, the deep economic troubles that confronted the United States and the ... brain skills. Looking through the details of the question to get to an overarching sense of the issue is at the heart of right brain thinking. Out of the...

Ngày tải lên: 20/06/2014, 20:20

... capital markets and the strong growth that they financed gave rise to the long string of successes that were celebrated through- out the 1990s and into the middle years of the first decade of the new millennium. ... More simply, the roots of the 2008 financial markets crisis can be found in mainstream economic theory and in the mathematical archi- tecture of m...

Ngày tải lên: 20/06/2014, 20:20

... crisis, the collapse of Japan Inc. after the stock market crash of 1990, the Asian crisis of the mid-1990s, the fabulous technology boom/bust cycle at the turn of the millen- nium, and the unprecedented ... expand their def- inition of excess if they want do better going forward. The Markets Stoke the Boom and Bust Cycle • 23 Figure 2.1 04020098969492908886...

Ngày tải lên: 21/06/2014, 02:20

... gone bust and the bank now owns the home. But the loan was for $58 8,000, and the house is worth $53 8,000. If lots of home loans go the way of Hanna’s loan, then the total value of the bank’s ... hereafter. Financial Markets as a Source of Instability • 45 And in the real world, people go off the deep end, with painful regularity. Our framework for thinkin...

Ngày tải lên: 21/06/2014, 02:20

... excessive uses of risk and concentration of investment. And the interplay of these two flaws explains each of the major economic declines of the past 25 years. In summation, the savvy analyst must be of two ... markets needed to be added to the Fed’s list of poten- tially destabilizing excesses. Why? Sadly, it was not the force of ideas that carried the da...

Ngày tải lên: 21/06/2014, 02:20