This column highlights the top economic stories of the week. There is no gold left in California. Governor Arnold Schwarzenegger is threatening to layoff fire, police, and teachers. All of this is certain to further increase unemployment and foreclosure rates. Schwarzenegger is now considering releasing nonviolent prisoners, shortening the school year, legalizing and taxing marijuana. …
Economic populism involves an economic philosophy urging social and political system changes. In the current political and economic climate, the public concern over the inequity of wealth appears to be at a peak. There is a growing call by Senator Barack Obama and democrats to raise taxes on the wealthy to shrink the wealth gap. But is it true that the rich are getting richer? Or are the rich actually in danger of losing a significant portion of the nation’s wealth? Are the democrats worried about a problem that’s already being fixed by the markets?
The economy is in crisis, unemployment is on the rise, and there is a general feeling of fear in the market. Where some see despair, Warren Buffett sees opportunity. In a recent Op-Piece in the New York Times, Mr. Buffett explains his reasons for investing in US Equities and urges others to do the same. He …
In view of the current financial crisis, it is hard to grasp the fact that overnight investment banks once regarded the kings of Wall Street, are teetering on the edge of stability. The bankruptcy of Lehman Brothers has threatened the survival of Morgan Stanley in spite of the fact that it has just declared great earnings. All eyes are on Morgan and Goldman Sachs, the two big I-banks left standing. Will they go next? What will this mean for corporate social responsibility in the investment banking sector?