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global financial crisis

Quote of the week: Lawrence Summers

Sina Odugbemi's picture

"The core of the revolt against global integration, though, is not ignorance. It is a sense, not wholly unwarranted, that it is a project carried out by elites for elites with little consideration for the interests of ordinary people — who see the globalisation agenda as being set by big companies playing off one country against another."

-Lawrence Summers, an American economist who currently serves as President Emeritus and Charles W. Eliot University Professor of Harvard University.  He worked as Chief Economist at the World Bank from 1991 to 1993 before being appointed as Undersecretary for International Affairs of the United States Department of the Treasury. In 1999, he became Secretary of the Treasury, a position he held until 2001. Summers later joined the Obama administration, serving as Director of the White House United States National Economic Council for President Barack Obama from January 2009 until November 2010. In mid-2013, his name was floated as a potential successor to Ben Bernanke as Chairman of the Federal Reserve, though after receiving pushback, Obama nominated Federal Reserve Vice-Chairwoman Janet Yellen for the position.

Quote of the Week: Brad Pitt

Sina Odugbemi's picture

Brad Pitt“I get enraged when people start telling other people how to live their lives.”

- Brad Pitt, an American actor and producer. He has received a Golden Globe Award, a Screen Actors Guild Award, and three Academy Award nominations in acting categories, and received three further Academy Award nominations, winning one, as producer under his own company Plan B Entertainment. Most recently, he produced The Big Short (2015), a biographical comedy-drama based on the 2010 non-fiction book of the same name by Michael Lewis about the financial crisis of 2007–2008 that was triggered by the build-up of the housing market and the economic bubble, which garnered a nomination for Best Picture.

The things we do: The economic, social, and personal costs of optimism

Roxanne Bauer's picture

Construction worker for the Panama Canal expansion projectIt is now the second week of 2016 and many people are working (or struggling) to follow through on their New Year’s resolutions. Whether they have decided to run a marathon, travel more, or save money, many people endeavor to create positive, new habits while shedding existing habits they think are less positive.  These resolutions, though, tend to last one or two months, fading into the backgrounds of their consciousness as spring arrives. 
It’s a typical combination of the planning fallacy, unrealistic optimism, and a bit of self-regulatory failure.
And this sort of challenge is not specific to New Year’s resolutions or even to issues pertaining to individuals.  City councils frequently draw up budgets that are too lean, road construction frequently lasts much longer than expected, and advances in technology often require much more investment than planners expect. So what’s at work here?  Why is it that people have a hard time judging the amount of time, energy, and resources that a project will take?

Quote of the week: Ben Bernanke

Sina Odugbemi's picture

Ben Bernanke“Individually rational behaviour can be collectively irrational. And that’s why the regulators have to do what they can to constrain individual behaviour, so that it doesn’t lead to collectively irrational outcomes.”

- Ben Bernanke, an American economist currently working at the Brookings Institution. He served two terms as chairman of the Federal Reserve, the central bank of the United States, from 2006 to 2014. During his time as chairman, Bernanke oversaw the Federal Reserve's response to the late-2000s financial crisis. Bernanke wrote in his 2015 book, The Courage to Act, that the world's economy came close to collapse in 2007 and 2008 and that it was only the innovative efforts of the Federal Reserve, in cooperation with other agencies and agencies of foreign governments, that prevented an economic disaster greater than the Great Depression.  Prior to serving as chairman of the Federal Reserve, Bernanke was a member of the Board of Governors of the Federal Reserve System from 2002-2005 and proposed the Bernanke Doctrine concerning the source of deflation.  

Wayward Bankers: An Epic Accountability Challenge

Sina Odugbemi's picture

The global community faces an epic governance and accountability challenge: the big banks that we all use either directly or indirectly are out of control and nobody seems to know what to do about them. As we mark the fifth anniversary of the global financial crisis this month, it appears as if every new week brings news of a fresh banking scandal. The recent list: