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Prof. Portes on global imbalances in savings. What happened and why the risks were not understood by Bernanke, Greenspan, and others. The view that successful models are very hard to change, reluctance in China to disturb the status quo, and the difficulty of getting people to accept the need to move away from this without a crisis.
Linked Articles
Imbalance in Nations' Savings Clouds Forecasts for Recovery
Wall Street Journal 03/23/2009
Chinese Savings Helped Inflate American BubbleNew York Times 12/26/2008
Mr Bailey's changing philosophy on life, happiness defined as debt free and able to enjoy life with his family. What this does to Savannah and Long Beach's port area.
Linked Articles
When the Downturn Sailed Into Savannah
New York Times 11/30/2008
Frugality Forged in Today's Recession Has Potential to Outlast ItWall Street Journal 04/06/2009
The falling clout of the Detroit automakers as the nation changed and things changed but the automakers dug in their heels into the status quo.
Linked Articles
Clout Has Plunged for Automakers and Union, Too
New York Times 11/18/2008
Bridge Loan to NowhereWall Street Journal 12/06/2008
How things are changing in Newton Iowa and other places in the midwest.
Linked Articles
Google at 10: Searching Its Own Soul
New York Times 11/08/2008
A Splash of Green for the Rust BeltNew York Times 11/02/2008
Fannie and Freddie takeover and the reporting of high level ties with lobbyists of both candidates shows the agents of change argument like the free markets argument "as only a thin veneer" as one expert puts it. In this case though the lobbyists who are in other roles as close advisors to the two candidates and the candidates themselves may not realize that politics as usual here had huge implications. Without the hard work of Secretary Paulson and Bernanke the collapse of Fannie and Freddie could have endangered the American economy, not an overstatement, and could also have serious ripple effects all over the world economy.
Linked Articles
For ’08 Rivals, a Skein of Ties to Loan Giants
New York Times 09/10/2008
The Fannie Mae GangWall Street Journal 07/23/2008
The high rate of leveraging of banks today compared to 2008, suggests that the U.S. Federal Reserve may have prematurely declared the banks safe, say experts.
Linked Articles
Stressing the Bank 'Stress Tests'
Wall Street Journal 03/14/2012
How Bad Will It Get on Wall Street?BusinessWeek 07/16/2008
Americans miles driven reached 3 trillion miles by 2007 and now are headed downward for the first time in 10 years. its affecting car prteferences in favor of smaller cars and changing driver habits.
Linked Articles
The Smaller the Better, Automakers Are Finding
New York Times 06/20/2008
Driving Less, Americans Finally React to Sting of Gas Prices, a Study SaysNew York Times 06/19/2008
Pulitzer prize winning journalist for reporting from the Middle East and expert on Saudi Arabia, Karen Elliott House, describes the changes in Saudi Arabia with the huge young demographic, and what it means for Saudi society, U.S.-Saudi relations, meeting the aspirations of young people.
Linked Articles
As the Middle East Burns, the Saudis Ease Up at Home
Wall Street Journal 06/25/2014
Our Friends in RiyadhWall Street Journal 05/14/2008
Improving unemployment figures in Ohio in 2012 with 7.2% unemployment has come with lower incomes in manufacturing and a lowering of expectations about the future.
Linked Articles
Ohio economy improving, but residents can’t feel it - The Washington Post
Washington Post 08/08/2012
The Wage That Meant Middle ClassNew York Times 04/20/2008
How the foreign investment model for countries that attracted Foreign Investment with lower wages is changing and the differentials with the US are closing, Irish hourly pay higher than US hourly pay.
Linked Articles
Ireland: The End of the Miracle
BusinessWeek 03/27/2008
China's Factory BluesBusinessWeek 03/27/2008
The Dacia and Logan brands manufactured in Romania are expected to cross the 1 million sales mark in 2012. The Logan and Dacia have established a presence in Europe as models known for reliability. Sales of these lower cost cars are popular with buyers in France who see this as a choice replacing buying a used car.
Linked Articles
Frugal Dacia Stars in Renault's Overhaul
Wall Street Journal 02/11/2008
Renault Takes Low-Cost LeadWall Street Journal 04/16/2012
How Nokia stayed ahead of the market and with new competitors like Apple's Iphone and stayed ahead of the rapid changes in the cell phone market, customers needs, new ways of using the phones, and new technologies and software changing the way cellphones are used every 1-2 years.
Linked Articles
Motorola to Spin Off Handset Unit, As Icahn Waits
Wall Street Journal 02/01/2008
Nokia Earnings Jump on Emerging MarketsWall Street Journal 01/25/2008
Among the changes in the mass market downscaling of Starbucks was the introduction of hot breakfast sandwiches. Schultz did not like the smell of the sanwiches taking away the aroma of coffees that was a key part of the Starbucks experience.
Linked Articles
Schultz Takes Over to Try to Perk Up Starbucks
Wall Street Journal 01/08/2008
Starbucks Shares Rise as CEO ReturnsWall Street Journal 01/09/2008
U.S. congresswoman Sheila Bair once said it was the task of fund raising that deterred her and others like her from pursuing careers of national service at higher levels. Obama outspent McCain and Romney by wide margins in 2008 and 2012, right wing groups such as the Koch brothers are organizing similiar efforts of their own for 2016 so as not to be outspent by their opponents.
Linked Articles
Final Fundraising Tally for Obama Exceeded $750 Million
Washington Post 12/06/2008
Koch Brothers’ Budget of $889 Million for 2016 Is on Par With Both Parties’ SpendingNew York Times 01/26/2015
This leads to the global imbalance in savings that London B-School's Prof. Portes complains about. Cross border flows fro, Asia to the West reach 3% of global GDP, pumping extra money into the US banking system, and the European banking system leading to bad lending and a consumption binge. The reluctance of China and the U.S. to change the staus quo till things simply collapsed.
Linked Articles
Imbalance in Nations' Savings Clouds Forecasts for Recovery
Wall Street Journal 03/23/2009
Global Economy: No Help from China's ConsumersBusinessWeek 11/26/2008
Linked Articles
Medicare, Medicaid Deficits Loom Over Health Priorities
Wall Street Journal 11/06/2008
New FDA Leaders Could Be Tougher on Drug MakersWall Street Journal 11/06/2008
Honda's has not lost its focus as fashions change.
Linked Articles
Honda Stays True to Efficient Driving
New York Times 08/26/2008
Toyota delays new Prius plantDetroit News 12/16/2008
Reilly questions the leveraging aspect of the Fed's 2002 stress test results as they leave U.S. banks leveraging at between 20-30 times capital, the situation that prevailed before the crisis. Experts including Anil Kashyap at the University of Chicago pointed out how the process of deleveraging works in reverse before the collapse of Lehman in 2008- for every $1 of bank losses the deleveraging cycle reduces bank lending by $20- $30.
Linked Articles
Stressing the Bank 'Stress Tests'
Wall Street Journal 03/14/2012
How Bad Will It Get on Wall Street?BusinessWeek 07/16/2008
The government's efforts to shift China away from low wage sectors to more advanced technologies with higher wages. And the growting sentiment in China among workers with the rise of the internet and mobile phones to organize efforts for higher wages in industries that range from older textile plants to automobile factories of Japanese makers, and factories that make parts for western tech hardware companies such as Apple, Dell and H-P. This includes Honda plants and Foxconn factories. This sentiment is shifting to other emerging markets such as Malaysia, Thailand and Indonesia.
Linked Articles
China's Export Machine Threatened by Rising Costs
Wall Street Journal 06/30/2008
The Rise of a Chinese Worker's MovementBusinessWeek 06/10/2010
Long term forecasting is a difficult business. IEA's 2015 forecast missed the situation in 2015 completely. Yergin was right but did not see how fast this would happen with oil prices down to $50 per barrel in 2015 and prices at the pump below $2.
Linked Articles
Wall Street Journal 12/12/2011
Energy Watchdog Warns Of Oil-Production CrunchWall Street Journal 05/22/2008
The perception that "this time is different" is a typical behavioural reaction in history to to financial crises studied by Rogoff and Reinhart. Economic weakness is part of the mechanism for correcting global imbalances which happens over a number of years.
Linked Articles
Economy May Face Prolonged Pain, History Suggests
Wall Street Journal 05/05/2008
Boom, Bust. Repeat.Wall Street Journal 10/09/2009
The insurance itself was not insurance but a chance to use different accounting rules to take the issuance of collateralized debt obligations to new heights. ACA was an outfit by the river issuing flood insurance. It had an A rating and was supposed to insure AAA securities.
Linked Articles
BusinessWeek 04/03/2008
Building WonderlandNew York Times 04/06/2008
Policymakers and economic change cause China's industry to shift from the low wage low margin model to more innovation, worker protection , environmental protection model.
Linked Articles
China's Export Machine Threatened by Rising Costs
Wall Street Journal 06/30/2008
Many Factories in China's South Sound Last WhistleWall Street Journal 02/22/2008
Smartphone competition from Chinese and Korean brands, Huawei and Samsung, and new technologies with the Android smartphones and the Apple iPhone have upended the market for mobile phones. Nokia an established competitor finds itself in a dangerous situation with a precipitious loss of market share at the low end and the high end, and eroding margins.
Linked Articles
Motorola to Spin Off Handset Unit, As Icahn Waits
Wall Street Journal 02/01/2008
Nokia Posts $1.2 Billion Loss as Sales Drop 29%New York Times 04/19/2012
EU's proposed change by 2013 would require companies to buy emissions permits. Previously under Kyoto Protocal rules these permits were first handed out free and then bought by the heavy polluters in a carbon market.
Linked Articles
Wall Street Journal 01/23/2008
U.S. Given Poor Marks on the EnvironmentNew York Times 01/23/2008
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