30th September 2011
Stock markets have rallied this week on the hope that politicians in Europe are putting together a plan to save the euro. But according to The Economist such hopes are likely to be short lived and the global economy will continue its perilous decline unless political leaders show more courage.
With unemployment in America still north of 9%, Democrats and Republicans are now turning their discussion towards job creation. Yet Paul Krugman of The New York Times describes the republicans assertion that the US government's business policy is hurting job creation as "completely divorced from reality".
The increasing view that Wall Street exhibits too much influence over US policy has spilled over into a new movement that began on the 17th of September called ‘Occupy WallStreet'. Matt Stoller writes in Naked Capitalism that what these people are doing is not protesting or marching but merely building a church of dissent.
Writing for Project-Syndicate J. Bradford Delong comes up with a way in which the US government can solve its macroeconomic issues. He says that if the government could borrow $500 billion and spend it on infrastructure it can reduce unemployment and increase output with no cost to the taxpayer and not add to its national debt.
In a guest post in FT Alphaville Jason Abbruzzese compares the recent financial crash to the collapse of the 2011 Boston Red Sox and Atlanta Braves in baseball. He analyses the use of statistics in financial markets and professional sports that appear to tell us "anything and everything" but couldn't predict these two different events from happening.
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