The Cost of Capitalism: Understanding Market Mayhem and Stabilizing our Economic Future 7 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 ... wit- nessed the 19 87 stock market crash, the S&L crisis of the early 1990s, the Long-Term Capital Management meltdown, and the spectacular...

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- tag...

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 ... economies and near universal disillusion with Wall Street, the most visible and dynamic capital market in the world. The irony of the 1980s, then, is that while commun...

Ngày tải lên: 20/06/2014, 20:20

... interest rates is the catalyst for recession. And housing investment, without exception, plunges (Figure 10.1). 126 • T HE C OST OF C APITALISM 82818 079 7 877 7 675 7 473 7 271 706968 676 66564636261 2500 2000 1500 1000 500 In ... 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 g...

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... classical theorists Economic Orthodoxy on the Eve of the Crisis • 171 The financial crisis has upset the linkage between mortgage bor- rowers and capital markets and has revealed a number of impor- tant ... government very small, keep the Fed focused on delivering low inflation, and let the markets and the private sector deliver the jobs and economic growth as...

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 1 975 . For Minsky, the deep economic troubles that confronted the United States and the ... occurred outside of Toronto, at the end of a holiday weekend in 1998. At the conclusion of a hockey tournament, I was driving my eldest son and One Practitioner...

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... 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 ... makers need to 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 04020...

Ngày tải lên: 21/06/2014, 02:20

... gone bust and the bank now owns the home. But the loan was for $588,000, and the house is worth $538,000. If lots of home loans go the way of Hanna’s loan, then the total value of the bank’s ... changed much, on the face of it. More of the same as an opinion about the future will lead the majority to expect another period of good growth and low inflati...

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 day....

Ngày tải lên: 21/06/2014, 02:20