Many think so. Former IMF chief economist Simon Johnson wrote in the Atlantic recently that "from 1973 to 1985, the financial sector never earned more than 16 percent of domestic corporate profits...this decade, it reached 41 percent." He calls it a "quiet coup." Felix Salmon at Reuters complains that "financial services companies are meant to be intermediaries, middlemen.
The H-1B visa is one of those policies that everyone loves to hate. It gives skilled immigrants -- scientists, engineers, researchers, etc. -- the right to live and work in the U.S. for six years, so nativists hate it right off the bat.
This piece in Foreign Policy says yes. Those that agree like to point out that after World War II, Great Britain, glorious empire though it may have been, was extravagantly in debt; the U.S. was a net creditor to the world, and Britain's most important source of financing.
Happy Days Are Here Again?: Obama's still got it: Two-thirds of Americans approve of his job performance, according to a new New York Times poll. And though 70 percent of respondents said they were worried about layoffs affecting their families, the percentage of people who thought the country was on the right track jumped from 15 percent pre-inauguration to 39 percent today.
This is a sentence you don't ever want to read:"The quality of the US census may be undermined because of rising numbers of people living in garages, tents, basements and motels as the financial crisis deepens." That's from the Financial Times, which says that "there is little data on the rise in 'non-traditional' housing, which is something the Census Bureau will generate for the first time as it seeks people out this year." The Bureau will hire 2,000 additional census-takers to deal with...
G20 Recap: The biggest win was an additional $1.1 trillion in funding for international aid agencies, and Jeffrey Sachs said simply that the results were "deeply heartening." Dani Rodrik called it a "a victory for the Europeans." Felix Salmon at Reuters said the resultant statement was "more substantive and harder-hitting" than most.
I just came across a fantastically interesting paper from Christopher Crowe, an economist at the IMF. (Hat tip to Zubin Jelveh at Economix.) Citing Robert Shiller's work on "irrational exuberance," Crowe sets out to test the hypothesis that "the housing cycle should be more muted in areas with high concentrations of households whose beliefs or 'values' make them less prone to participating in a speculative mania." And who better to test the idea on than evangelical Protestants, whose fervent...
The economy is back on track and economists expect global growth of four percent this year. Happy April Fool's Day!Apocalypse Now: On the eve of the G20 Summit in London, protesters take to the streets. "Four marches, led by representations of horsemen of the apocalypse, converged on the Bank in the Financial Fools' Day protest," reports the Financial Times.
This blog has only been live for two days and already we're getting excellent comments from our readers. We want Wealth of Nations to be a conversation, and when you say something smart, we plan to highlight it.I was pleasantly surprised by the reaction to my post on the end of Swiss banking secrecy.
We posted a couple times last week on the kerfuffle surrounding remarks by China's central bank governor, Zhou Xiaochuan, that advocated "creat[ing] an international reserve currency that is disconnected from individual nations." To many, this sounded like an attempt to displace the dollar from the top of the currency heap, and a sign of China's growing ambitions.Brad Setser, a macroeconomist at the Council on Foreign Relations, who I quoted in my earlier post, took the weekend to read Zhou's...
You probably thought the Jim Cramer vs. Jon Stewart feud was over. And it is, for the most part. But I just stumbled on this video from PBS. It's a clip from an episode of the investigative journalism series Frontline from way back in 1997, and the first couple minutes show Jim Cramer in action as a hedge fund manager.
The list of most dangerous professions includes jobs like Bering Strait crab fishermen and Pacific Northwest logger. A new contender: AIG executive. After the collapsing insurance giant, which has accepted $170 billion in taxpayer bailout money, announced it was paying out $165 million in bonuses to top employees -- including many in the Financial Products division, the Mordor-like seat of financial evil -- populist rage crescendoed.
To most publishers, it would've been a touch of golden luck: a manuscript about the worst economic crisis in decades, written by a financial insider and finished months before rivals had even a rough draft ready.