never underestimate politics

it is said that money is supreme and corporate tycoons are power brokers who can do whatever they want. the recent incident of goldman CEO accepting/being given a very low bonus of $9mn as compared to $68 mn in 2007 with similar bank performance is an indicator of how strong popular voice supported by politics can force the mighty to do their bidding. I mean one can't get go back next year and give bonus for this year. then this is something spectacular happening here. public anger over perceived or actual incompetence of wall street forcing people to change their practices.

now the thing to see is whether there will be movement away from goldman sachs of the key employees due to low bonuses. does the bugbear of the reason why we need high pay in wallstreet is talent which will move away if denied obscene compensation is true or not? This is certainly me not being envious/jealous of wall street and want some sort of closure ..this is more from economic theory of whether labor markets clears and is so efficient?

articles on barack obama's first year

http://www.newyorker.com/online/blogs/newsdesk/2010/01/one-year.html

Economic Incentives which may bring catastrophe

http://krugman.blogs.nytimes.com/2009/12/16/throwing-momma-from-the-train/

One of the best takes on Obama's leadership style..

http://www.nytimes.com/2009/12/04/opinion/04brooks.html?_r=1&hp

statement about US politics

underscore just how alarmingly expertise is discounted — or equated with elitism — in our increasingly democratized era, and just how thoroughly colorful personal narratives overshadow policy arguments and actual knowledge.

Impotant Questions for Finance as raised by many economists

Can the financial sector get too big, and if so how can we tell?
Can derivatives markets concentrate risk as well as spread it?
Is financial innovation fundamentally different and more dangerous than innovation in other fields, and if so what should we do about it?
Should central banks and financial regulators try to snuff out asset-price bubbles, and if so how should they go about determining when we're in bubble territory?
Is Hyman Minsky right that good times inevitably breed crises?

a nice article on gold standard

http://web.mit.edu/krugman/www/goldbug.html

of course need to discount krugman's political attacks..