Death Star Economics



Monday, #41

Premise: Fitch said “‘comprehensive solution’ to the eurozone crisis is technically and politically beyond reach“. This is following a statement by the ECB from December 8th, when it became a secret lender of last resort, with low interest rates for banks and high interest rates for countries. You do the math.

Argument against: Felix Salmon on why that might be a good idea from a public choice theory point of view, but why it might not work out in the endread article

Argument in favor: Steve Randy Waldman on why we should prefer the ECB to have less powerread article

Let’s play the fun income-gap game again and take a look at some unfortunately US-specific numbers. The Economist shows real net income broken down into four groups (top 1%, 81st-99th percentiles, 21st-80th percentiles, lowest quintile). What’s that? Things got better for everyone? The richest take the biggest slump in income during recessions? I can’t hear you, there’s a protester screaming in my ear. view graphic

Okay, okay, fine. The income-gap is more than significant. It’s massive… on paper. But what makes a person rich in the eyes of others? What is the public perception of ‘rich’? (By the way, that is still not a tax bracket.) Research consultancy Gallup went out to find some answers. read article

Facebook is being sued for unfair-practice. Since January 2011, the “sponsored” ads on the right margin of the page name the friends who already like a product. I don’t really mind, nor do I find it disturbing to be statistically twice as likely to click on a link if one of my friends liked it before. But some people do and they sued. Their reasoning is that they couldn’t opt out from participating in the sponsored ads and that it takes privacy control away from the consumer. In other words, it’s a call to keep people’s information on their profiles, and on the profiles alone, which goes against the very concept of the newsfeed. read article

Here a little reminder that apart from building the “big bazooka”, i.e. the EFSF and its little sister the ESM, Europe, or rather European banks, also need to find €115bn to meet the new capital requirements imposed on them. view graphic

So long.


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One Response

  1. […] in February [especially now the AAA-rating is on the line]. read article In late addition to Monday’s Economist chart, Robert Frank of the Wall Street Journal explains what […]

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