Tag: crisis

Economy

The Real Cause of the Financial Crisis | Global Labour Supply Shifts

Colin Henderson

Over at Econbrowser Menzie highlights this new paper from two Profs, and someone from the NY Fed (no title). It closes the loop for me on something thats been bothering me about economists and the financial crisis. The debate about the cause of the crisis vacillates between Greenspan and loose credit, versus, global imbalances and Chinese who save too much. Neither of these resonate much, appear as reactions to a situation, and are therefore more symptomatic than causal. From the abstract to Why are we in a recession? The Financial Crisis is the Symptom not the Disease!, by Ravi Jagannathan, … Continue reading The Real Cause of the Financial Crisis | Global Labour Supply Shifts

Uncategorized

Concern over banks and ‘dark pools’ reaches G20

Colin Henderson

A new concern has arisen over the growth of ‘dark pools’ or private unregulated trading exchanges, where banks and large investors are trading derivatives off balance sheet. IT is significant enough to have come to the attention of this weeks G20. Exchanges issue warning on spread of ‘dark pools’ | ft.com The world’s stock and derivatives exchanges on Tuesday warned the Group of 20 leaders that the continued “proper functioning” of their markets could not be taken for granted because of a proliferation of alternative trading venues such as “dark pools”. This is relevant because the near $ 1 trillion … Continue reading Concern over banks and ‘dark pools’ reaches G20

Economy1 Comment

Financial markets did not detect the deterioration of structural productivity trends in the early 2000s early enough

Colin Henderson

A fascinating analysis of economic conditions prior to 2007, sugesting that dropping productivity and the concurrent increase in asset prices contributed at least in part to the economic crisis, yet was not picked up by the market. Productivity and the crisis: Revisiting the fundamentals | Vox Most narratives of the crisis start with problems in the financial sector that then spilled over into the real economy. This column looks at the real side first and shows that labour productivity growth declined significantly in the years prior to the crisis, particularly in the US construction sector. Financial markets may have failed … Continue reading Financial markets did not detect the deterioration of structural productivity trends in the early 2000s early enough

Canada, Economy

Countries that are least affected by the Economic Crisis

Colin Henderson

An interesting survey of business reaction to the crisis, and which countries are least impacted.  Full ranking follows the map.  This explains a lot in terms of peoples reactions. Time will tell if this reaction remains constant, and what were the contributors to and rivers of this reaction. Countries that are Least Affected by Recession | digital inspiration The data is based on the results of a business confidence survey that was done on international business people of 24 nations to identify which countries they believe are surviving the crisis the best. Researched by Nobuyo Henderson Continue reading Countries that are least affected by the Economic Crisis