Rethinking Macroeconomic Theory Before the Next Crisis
Only after the US subprime financial crisis began have the macroeconomic and monetary theories of mainstream economists been questioned.
Read more...Category Archives: Market inefficiencies
Michael Hudson: Celebrating the One Percent – Is Inequality Really Good for the Economy?
The backlash has begun. Prominent economists are upping their game in trying to depict the gains of the One Percent as virtuous and beneficial.
Read more...David Harvey and Capitalist Hypertension
David Harvey on the circulation of capital, crisis, and the shipping crisis.
Read more...Does Wall Street Do “God’s Work”? Or Even Anything Useful?
Bank executives frequently proclaim that Wall Street is vital to the nation’s economy and performs socially valuable services by raising capital, providing liquidity to investors, and ensuring that securities are priced accurately so that money flows to where it will be most productive. There’s just one problem: the Wall Street mantra isn’t true.
Read more...Bill Black: Thomas Friedman’s Big Idea for Hillary – Embrace Wall Street and Deregulation
Help us, Tom Friedman is at it again…
Read more...Elizabeth Warren Opens Broad Attack Against Rent-Seeking Oligopolists Like Amazon, Apple, Google, Walmart, Comcast
Curiously, Elizabeth Warren is taking aim at powerful interests that are deeply loyal to Hillary Clinton. The plot thickens.
Read more...MIchael Hudson: The Slow Crash
Michael Hudson discusses some of his favorite themes; debt deflation, the high cost of consumer debt, negative interest rates.
Read more...Bill Black: Mankiw’s Mythical Ten Commandments of Theoclassical Economics
Examining Maniw’s core myths, um, principles, and how they are dangerously misleading.
Read more...Money and Banking – Financial Crises
The mechanics of financial crises and how an economy gets there.
Read more...A Global Marshall Plan for Joblessness?
Time for a Marshall Plan for unemployment: no workfare, no bullshit jobs, no compulsory work, no digging holes. Start with a Green New Deal.
Read more...Where is Amy Klobuchar? How Democratic Indifference is Squandering a Unique Moment on Antitrust Policy
It’s been a good few weeks for opponents of further market concentration. Oil services firms Halliburton and Baker Hughes called off their merger amid a Justice Department lawsuit. New rules on corporate inversions led to an abandonment of the Pfizer-Allergan merger. The White House issued a directive to federal agencies to take steps to foster competition, with an opening salvo of ending the monopoly of cable set-top boxes. The Economist, of all places, started agitating for increased competition amid record corporate profits. The antitrust movement, in short, has gone mainstream.
Read more...Uber Spends $100 Million to Save its Business Model, But It May Have Just Doomed It
I’ve written before at this august site about how Uber’s business model is to arbitrage state and federal law and replace a monopoly with a different monopoly. They obviously placed a high value on the arbitrage. How high? About $100 million.
Read more...Robert Reich: Why Is One of Sanders’ Most Important Proposals Being Ignored?
Sanders’ financial transactions tax plan hasn’t gotten the hearing it deserves.
Read more...Rajiv Sethi: Fee-Structure Distortions in Prediction Markets
Since the launch of the pioneering Iowa Electronic Markets almost thirty years ago, prediction markets have grown to become a familiar fixture in the forecasting landscape. Among the most recent entrants is PredictIt, which has been operating for about a year under a no-action letter from the CFTC.
Read more...Misunderstanding the Great Recession
How many of the textbook explanations of the Great Depression were proven wrong, yet despite that, were misapplied to the Great Recession.
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