- Why the crisis hasn’t shaken the cost of capital
The cost of capital hasn’t increased so far in the downturn—and didn’t in past recessions.
- The End of the Financial World as We Know It
by Michael Lewis & David Einhorn
Americans enter the New Year in a strange new role: financial lunatics. We’ve been viewed by the wider world with mistrust and suspicion on other matters, but on the subject of money even our harshest critics have been inclined to believe that we knew what we were doing. They watched our investment bankers and emulated them: for a long time now half the planet’s college graduates seemed to want nothing more out of life than a job on Wall Street.
- Why India Won’t Rebound Soon
India’s stock market may look attractive after its massive slide, but there’s probably more pain to come. A host of economic and political challenges could keep a new bull market at bay for more than a year.
- An undercover economist on sex, logic & life
Economists normally like to talk about the graver things in life, like the impending recession, the perils of deflation, the current financial crisis and so on. But what would you say about an economist who talks about things that happen in everyday life? Things like Starbucks and the coffee that it serves; or why are people paid more as they go up the hierarchy, even though the amount of work they do comes down. He even writes that “Oral sex is definitely in vogue.”
- Bracing for a year of brutal trench warfare
There was palpable relief as at the end of 2008 the ‘financial’ crisis moved into the ‘real’ economy. Commentators could move to the relatively familiar language of ‘recessions’ and ‘depressions’.