Tag: Doomsday scenarios

Angela Merkel Urged To Put European Solidarity Over German Interests and Back Coronabonds

Yves here. Is Merkel capable of a Nixon goes to China moment? She’s such a cautious politician that it seems unlikely. Originally published at openDemocracy A meeting of eurozone finance ministers ended this morning without agreement on how to pay the huge costs of dealing with the COVID-19 pandemic, the Financial Times reports. Italian and […]

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New York Fed, FDIC Tout “Opacity in a Banking Crisis” to Keep Corporations, Hedge Funds, PE Firms & Counterparties in the Dark about Weak Banks

Yves here. Wolf Richter highlights a new (April 2) paper posted at New York Fed’s Liberty Street Economics site, written by Haelim Anderson, a senior economist at the FDIC, and Adam Copeland, an an assistant vice president in the Federal Reserve Bank of New York’s Research and Statistics Group. This looks like a timely piece […]

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The FT Says It’s Time for the Bank of England to Start Direct Funding of the Government: Modern Monetary Theory Has Won the Day

Yves here. One of the big differences between the UK and the US after the crisis was that the Bank of England under Mervyn King (along with Adair Turner at the FSA) was openly critical of the banks and attempted to break them up, but was thwarted by the Treasury. The Bank has also gone […]

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Coronavirus: A Theory of Incompetence

Leaders in the public and private sector in advanced economies, typically highly credentialed, have with very few exceptions shown abject incompetence in dealing with coronavirus as a pathogen and as a wrecker of economies. The US and UK have made particularly sorry showings, but they are not alone. It’s become fashionable to blame the failure […]

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Right to Repair and Ventilators: Saving COVID-19 Patients

By Jerri-Lynn Scofield, who has worked as a securities lawyer and a derivatives trader. She is currently writing a book about textile artisans. The United States faces a dire shortage of ventilators for treat ing its COVID-19 patients.  The coronavirus crisis has elevated the importance of the right to repair, since keeping machines currently in […]

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Services Sector Falls Off Cliff: First Data Points from the Eurozone Where Lockdowns Started Earlier

Yves here. Note that early on, Emanuel Saez and Gabriel Zucman estimated that the coronavirus crisis could produce a 10% fall in US annual GDP based on the magnitude of the hit to services. This sounded crazy then and is looking less crazy now. By Wolf Richter, editor at Wolf Street. Originally published at Wolf […]

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The Coronavirus Pandemic Has Opened the Curtains on the World’s Next Economic Model

Yves here. While the vogue for globalization, which has been a dominant business and economic model for decades, is suddenly looking imperiled, it isn’t clear what comes next. Recall the last great period of globalization was the period right before World War I. It collapsed in World War I due among other things to the […]

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Why Can’t Everyone in This Country Get Free COVID-19 Treatment?

Yves here.  Americans find it very hard abandon hustling, as our multi-faceted Covid-19 fiasco illustrates. And the Trump Administration is predictably missing in action in terms of even trying to jawbone health care providers and insurers to foot Covid-19 costs. By Diane Archer, a senior adviser to Social Security Works and founder and president of Just […]

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The EU’s Green Deal: Bismarck’s ‘What Is Possible’ versus Thunberg’s ‘What Is Imperative’ in the Age of Covid-19

Yves here. While you were busy with impeachment and then coronavirus, the EU has been moving forward with a “Green Deal”. But what to make of it? By Servaas Storm, Senior Lecturer of Economics, Delft University of Technology. Originally published at the Institute for New Economic Thinking website The unstoppable global health emergency has ripped […]

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The Coronavirus Depression Requires A New Approach to Budgeting

Yves here. Nathan Tankus wrote for NC upon occasion before getting a following on Twitter and now on his site, Notes on a Crisis, where one of his ongoing projects is keeping up with the onslaught of Fed interventions. We are grateful for being able to feature his latest work, on how coronavirus is (or […]

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Informal Workers in the Time of Coronavirus

Yves here. This post gives a sense of how many people globally are vulnerable to the coronavirus shock. By C.P. Chandrasekhar, Professor of Economics, School of Social Sciences, Jawaharlal Nehru University, New Delhi, India and Jayati Ghosh, Professor of Economics and Chairperson at the Centre for Economic Studies and Planning, School of Social Sciences, Jawaharlal […]

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Coronavirus: More Wheels Coming Off

This post will be a bit scattered due to competing obligations yesterday, but I wanted to register some indicators that coronavirus-induced economic stresses are becoming more acute. This isn’t surprising since the coronavirus hadn’t peaked in most countries, plus the severity of the shock means that knock-on effects will not only continue but also have […]

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The First Victims of the Oil Price War

Yves here. While this post has some useful information about the dynamics of the price war between the Saudis and Russia, it reaches unduly cheery conclusions regarding US shale players. The sector is almost entirely uneconomic even at much higher oil price levels. I struggle to see how “consolidation” would do much at this juncture […]

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Brace Yourselves: The US Is Setting Up a Ghastly “Natural Experiment”

Yves here. Since this post launched, Virginia had declared a state-wide lockdown till June 10 (although it could be lifted earlier). By contrast, in Alabama, the governor  last Friday only closed all non-essential businesses through April 17.  But the key bit is look how quickly things appear set to get ugly in the US. By […]

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Four Ways You Can Take Caring Action Around Coronavirus – Even if You’re Overwhelmed

Yves here. This post, particularly the first section, is awfully touchy-feely for my taste. If you are really flattened by the impact of the coronavirus, like panicking about your financial situation or trying to get care for a partner or close friend, listening to uplifting stories seems Pollyannaish. Readers may have better ideas for coping […]

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The Coronavirus Stimulus Bill Is a $2 Trillion Slush Fund for Washington Cronies

Yves here. The financial crisis was such a successful exercise in looting the public purse that our oligarchs are at it again, this time via the “stimulus” bill. By Marshall Auerback, a market analyst and commentator. Produced by Economy for All, a project of the Independent Media Institute When historians look back on our current […]

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Give Us This Day Our Daily Bread: Coronavirus and Food Security

By Jerri-Lynn Scofield, who has worked as a securities lawyer and a derivatives trader. She is currently writing a book about textile artisans. Many years go, during the ‘80s, I had an academic fellowship in Geneva, Switzerland. There I spent a wonderful year, researching trade policy, improving my French, skiing most winter weekends, and learning […]

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