Why Excessive Risk-Taking Is Not Unexpected

Leo E. Strine Jr. is vice chancellor of the Delaware Court of Chancery.Whatever the possible causes of the recent financial debacle, it seems clear that there is one cause that can be ruled out: that the directors and managers of the failed firms were unresponsive to investor demands to take measures to raise profits and increase stock prices.Rather, to the extent that the crisis is related to the relationship between stockholders and boards, the real concern seems to be that boards were warmly

A Stab At Resolving The Inflation/Deflation Debate

There is a great debate raging between students of monetary economics. On the one hand, there are the deflationists who point to the massive deleveraging in the housing, mortgage, credit and stock markets. The fall in prices in these asset markets, at least through March 2009, was devastating and destroyed trillions of dollars of wealth and credit. On the other hand, there are the inflationists who focus on Fed policies and the money supply. Since the onset of the financial crisis, the Fed

Green Chip Weekend Edition

Welcome to the Green Chip Review Weekend Edition — our insights from the week in everything renewable energy and cleantech, as well as links to our most-read Green Chip Reviews and sister publication articles. It seems everything went well for cleantech this week except stock prices. Through the U.S. Energy Information Administration, it was learned that energy production from coal has been in decline for years, and is actually falling faster because of the recession. According

Is Great Inflation Coming ?? 2008/2009?

The so-called "credit crisis" is gaining momentum. Investors increasingly question the solidity of the banking system, as evidenced by banks' tumbling stock prices and rising funding costs. With bank credit supply expected to tighten, the profit outlook for the corporate sector, which has benefited greatly from "easy credit" conditions, deteriorates, pushing firms' market valuations lower. In fact, peoples' optimism has given way to fears of job losses and recession on a global scale. Free mark

BUBBLENOMICS IS ALIVE AND WELL IN CANADA

Here is a guest post from BC union (steelworker) researcher Kim Pollock. By Kim Pollock There is growing evidence that a new stock-market bubble is growing daily, right before our very eyes. But while stock-market prices and market capitalization grow, there are still few signs of real economic recovery. In Canada for instance, real gross domestic product decreased 0.5 percent in May, a faster rate of decline tha

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