Merton Finkler

Author: Merton Finkler

This Time is Different (NOT)

Last year, economists Ken Rogoff and Carmen Reinhardt published what will become (and may be already if that were possible) a classic. The book is entitled, This Time is Different: Eight Centuries of Financial Folly. It traces the history (both recent and ancient) of a plethora of failed attempts by countries to borrow their way to prosperity.

In his January 29th newsletter, John Mauldin selects some of the juicier pieces for citation. They make for sobering reading. Enjoy (or maybe not.)

http://frontlinethoughts.com/gateway.asp

What Should We Expect of Our Central Bankers?

Ben Bernanke’s reappointment as Chair of the Federal Reserve Bank remains in the hands of the U.S. Senate. Many are calling for a negative vote. I (and Ed Glaeser in the linked piece below) beg to differ and would like to point out that central bankers are not and should not be in charge of solving all the ills of the economy nor can they create all such ills.

http://economix.blogs.nytimes.com/2010/01/25/in-defense-of-bernanke/#more-49539

Is Efficient Market Theory Dead?

Efficient Market Theory is Dead! Long Live Efficient Market Theory!

Many pundits believe that the efficient market hypothesis as a way to describe financial market behavior has suffered a fatal blow from the recent financial crisis. These advocates have attempted to nail the coffin on the EMH. Jeremy Siegel, author of Stocks for the Long Run, begs to differ. Read his October 27th piece in the Wall Street Journal which I have posted on my website.

Efficient Market Theory and the Crisis

The Long Climb

This week’s Economist magazine features a special report on the world economy. The authors address the current state of the world economy as well as conjecture about a “new normal” for the path forward. This indepth and well referenced report serves as great background for discussion about the state of the world’s economy, how we reached this state, and what are the prospects for the future. Follow the link below to indulge.

http://www.economist.com/surveys/displaystory.cfm?story_id=14530093