The financial services industry as we have known it since the early 1990s has effectively collapsed. Its flaws of over-optimistic risk management, aggressive rent extraction and excessive leverage have proved fatal, as was eventually inevitable. Since a modern economy cannot function without an adequate financial services sector it is not sufficient to push the remaining […]

There is a considerable argument between commentators at present as to whether, apart from a pretty painful recession, we are in for a bout of inflation or deflation. Both sides have apparently cogent arguments, and maintain their positions with considerable vigor. Robert Samuelson, having recently published a book “The Great Inflation” that suggested another burst […]

Investors have spent the last few weeks bemoaning the devastation to their portfolios caused by the stock market downturn, which if it does not produce recovery by year-end will have made 2008 the worst stock market year since 1937. Their misery would be compounded if they knew that next year, while it may avoid more […]

The number of economically damaging policy ideas imposed on the United States has greatly increased in the last few months. However from the statements of the Presidential candidates, the next few years may turn this storm of bad ideas into a blizzard. Those with an emotional attachment to the US economy should brace themselves for […]