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Today's Theme: Regime Uncertainty
EconLog: Library of Economics and Liberty —
... that we are headed for Capitalism 2.0, in which stock prices are much lower, and banks are treated like public utilities--their job is to run the ATM machines and process payments, but not to take risks. Ricardo Hausmann says that we are still the tallest pygmy. The Dow Jones is down by almost 40 per cent so far this year but this makes it pretty much the best performing stock market in the world. Our banking system does appear to be less fragile and better regulated than that of many European countries. Our government-debt-to-GDP ratio is lower than most (although we are ...
"The Crisis Gives the US New Financial Power"
Economist's View —
...
The crisis gives the US new financial power, by Ricardo Hausmann, Commentary,
Financial Times: The economic crisis in the US signals the end of American
global hegemony. Or does it? ...[I]f the US plays its hand well, things will
turn out to be just the opposite. ...
A 21st Century Marshall Plan
The Big Picture —
... Ricardo Hausmann has a very clever idea in today’s Financial Times. We’ve all heard the idea of freeing up the housing market by using the US Government’s ability to borrow at low rates. Hausmann globalizes that idea and suggests that the US re-export money to “fairly well behaved countries such as Brazil, Colombia, Mexico, Peru, South Africa and Turkey have essentially lost access to external finance.” ...
Pink Picks
FT Alphaville —
... The Madoff scandal reflects badly on regulators, but badly, too, on the funds of funds that entrusted Bernard Madoff with their clients’ cash. And the Madoff affair is not the only challenge to the hedge fund industry. Comment: America’s new financial power Ricardo Hausman writes: Despite the financial crisis, the US can still borrow – and lend, says Hausmann, director of Harvard’s Center for International Development and a member of the Latin American Financial Regulation Shadow Committee ...
