Category Archives: Economics

HOW LONG IS THE COAST OF BRITAIN?

HOW LONG IS THE COAST OF BRITAIN? I learned from an obituary for Benoit Mandelbrot that one of the important mathematical papers of the last century was entitled “How Long is the Coast of Britain?” Mandelbrot’s article was an early … Continue reading

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BENOIT MANDELBROT AND FRACTALS.

BENOIT MANDELBROT AND FRACTALS. Benoit Mandelbrot has died. I have posted on his insights into the financial system, in particular the insight that “rare events’ are much more frequent than people in financial markets have assumed by using normal or … Continue reading

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DEFENDING THE BOURGEOIS.

DEFENDING THE BOURGEOIS. I wonder if my reaction to MADAME BOVARY arises from my dislike for his view of society. Jonathan Raban says in his article that “Flaubert …never sheds the mantle of an haut bourgeois writing …. about members … Continue reading

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TOXIC ASSETS AND FORECLOSURE PROBLEMS.

TOXIC ASSETS AND FORECLOSURE PROBLEMS. I have posted several times about how the toxic assets seem to be the distinctive feature of this financial crisis, about how “a lot of the paperwork on mortgages hadn’t been done” (here) and on … Continue reading

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“RIMAN SHOKKU.”

“RIMAN SHOKKU.” The Wall Street Journal noted the other day that what I have been calling “the current financial crisis” is referred to by the Japanese as “Riman Shokku” (or “Lehman Shock”). It’s a good name if you think (as … Continue reading

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FLATTERY.

FLATTERY. How do you go about getting power so that you can be corrupted and absolute power so you can be corrupted absolutely? The Schumpeter column in the September 11 Economist discusses some academic research on how to get power. … Continue reading

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THE IMPORTANCE OF THE GREEK DEBT CRISIS.

THE IMPORTANCE OF THE GREEK DEBT CRISIS. Kids, I posted here about how the euro is threatened by the Greek debt crisis. Michael Lewis in this interview says that he doesn’t think that Greece can repay 100% of its debt … Continue reading

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NOT COLLECTING TAXES.

NOT COLLECTING TAXES. Without accountants, a modern government would not be able to collect taxes. Greece didn’t collect taxes. Michael Lewis quotes the Greek finance minister: “The first thing a government does in an election year is to pull the … Continue reading

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NOT KNOWING HOW MANY EMPLOYEES YOU HAVE.

NOT KNOWING HOW MANY EMPLOYEES YOU HAVE. One of the things accountants do is keep track of things, such as assets—or employees. The Greek government did without a count of employees. There were a lot of off-the-books job-creation programs. Lewis … Continue reading

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WHAT IF THERE WERE NO ACCOUNTANTS?

WHAT IF THERE WERE NO ACCOUNTANTS? Bernie Madoff, of course, answers the question for private corporations. From another great Michael Lewis article in Vanity Fair, it seems that the Greek government provides a good example of what a public organization … Continue reading

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