Archive for November, 2008|Monthly archive page

Clown Rings Bell on Wall Street

Maybe a picture is worth a thousand words. Here are clowns — not the ones in the executive suites, but real clowns — ringing the opening bell on the New York Stock Exchange. clowns-on-wall-street

The Bank of Michael Perelman

I am happy to announce that I have changed my name. As of now, you may address me as The Bank of Michael Perelman.

I am not greedy. If Secretary Paulson would grant me only a couple hundred million, I would not trouble him for one of the billion dollar bailouts.

Why Markets Fail

Markets fail for many reasons. With all the attention to the current financial crisis, the time has come to look at another part of market failure — the reluctance to invest in long-lived plant and equipment. I’m not merely thinking about the deindustrialization of the US economy, but a more general reluctance.

The commitment of funds for fixed capital entails taking a risk. In the words of John Hicks, one of the earliest economists to win a so-called Nobel Prize, pointed to the obvious problem: “an entrepreneur by investing in fixed capital gives hostages to the future” (Hicks 1932, p. 183). Unfortunately, neither Hicks nor virtually any other economist has explored this fear of investment.

The most popular response to this reluctance to invest came from a very conservative Austrian economist, who once served as a socialist minister of finance, before landing at Harvard. Joseph Schumpeter was indeed one of the giants of 20th century economics. Here his reputation to his personal brilliance, as well as a willingness to learn from Karl Marx.
I have attached the rest of the piece as a pdf. It was written to help me focus my thoughts for my talk in San Francisco tomorrow. Any comments will be appreciated.

schumpeter

Johnathan Swift on The Bubble

No commentary needed:

The Bubble
Ye wise Philosophers explain
What Magick makes our Money rise,
When dropt into the Southern Main;
Or do these Juglers cheat our Eyes?

I will be giving a talk in San Francisco next Wed

It would be fun to meet the people that I encounter on lists.

San Francisco Peace and Freedom Party Presents:
A Forum

The Financial Panic, The Causes and The Solution
with
Author
Michael Perelman, CSUC Economics Professor and Author of

THE CONFISCATION OF AMERICAN PROSPERITY
From Right-Wing Extremism and Economic Ideology to the Next Great Depression

Wednesday November 12, 2008 7:00 PM
522 Valencia St/16th St. 3rd Floor
San Francisco, CA

$5.00 Donation requested (no one turned away due to financial need) strikers and unemployed Free

Sponsored By Peace and Freedom Party, San Francisco
For more information call (415)637-3787
http://www.peaceandfreedom.org