A very interesting video on the link between inequality and the origin of the financial crisis on The Real News. This is in line with recent research in Europe.
Nothing illustrates better the political crosscurrents, special interests, and shortsighted economics now at play in Europe than the debate over the restructuring of Greece’s sovereign debt. Germany insists on a deep restructuring – at least a 50% “haircut” for bondholders – whereas the European Central Bank insists that any debt restructuring must be voluntary. In [...]
Last week a British hedge fund bought 250,000 tonnes of cocoa beans, pushing prices up to a record 33-year high. Hedge funds and banks are constantly speculating on food and other commodity prices, but what was unusual in this case is that the hedge fund actually took delivery of the beans. These actions are an [...]
In early 2009, Paul Krugman gave a series of lectures at the London School of Economics on the global economic crisis in which he warned about the danger of a ‘perfect storm’ hitting the economy. The scenario he sketched was that of a fragile recovery in 2010-11 being hit by an inflationary spike, leading to [...]