Archive for the 'Current events' Category

Why stock markets crash

August 22, 2015

Stock markets around the world crashed yesterday — but why? That’s a tough one, but here’s what we know about stock prices in general:  Read the rest of this entry »


All Greece, all the time

July 5, 2015

Our students are thinking: “At least it’s not Argentina again.” We’re thinking: “This is great, a real-world experiment we can talk about for years.”

Some things to think about as the Greeks vote “no”:

  • Anil Kashyap on how we got here, the best thing we’ve read on the topic. It’s like “Murder on the Orient Express,” everyone’s guilty. Here’s another one if you like this kind of thing.
  • This likely means more austerity not less. Without support from the IMF and EU, Greece will have to finance government spending with its own tax revenue. That’s true even if it pays nothing on its debt.
  • Kim Schoenholtz on the difference between Greece and Puerto Rico: PR’s banks aren’t supported by local deposit insurance, Greece’s are. If the banks go under, that’s bad for everyone. It will be interesting to see if the European Central Bank reverses its longstanding policy and supports the Greek banking system — or not.
  • Does a “no” vote give Greece more leverage, or is it a painful self-inflicted wound?
  • Can we drag this out until fall so we can use it in class again?

Stay tuned.

Soccer update: Pay attention, this is important to your education in things people care about in the rest of the world. Chile beat Argentina in the Copa America, the soccer championship of Latin America, when Alexis Sanchez converted a Panenka. If you can use the word Panenka in a sentence, you’ll be welcome in most of the world.

Doing business in Argentina

April 6, 2015

Linette Lopez put it this way in Business Insider:

After suspending Citibank’s access to Argentine capital markets and sacking the bank’s CEO in the country, Argentine authorities will perform an “integral inspection” [on the bank].  Read the rest of this entry »

Brooklyn Nets analytics position

September 22, 2014

From a job posting from the Brooklyn Nets. Position: Director of Basketball Analytics. Requirements include:

  • Bachelor’s degree;
  • Proficient with Microsoft Office, Outlook and related software;
  • Must be able to lift ten pounds.

Link from Nathan Yau.

Why Argentina should not pay

September 6, 2014

Here’s an interesting take on the continuing saga from Juan Pablo Nicolini. I’ve taken some liberty with the translation, but believe this captures the spirit of his remarks:  Read the rest of this entry »

Ghana discovers oil, trouble ensues

August 3, 2014

One of the curious facts about country performance is the so-called resource curse: countries that have lots of natural resources grow more slowly, on average, than those that do not. How can that be?   Read the rest of this entry »

Mike Spence on Bloomberg

August 1, 2014

Here’s the link, chopped into convenient pieces. Start with this one on the skills we’ll need in the future.

Argentina defaults, again

July 31, 2014

Argentina has now defaulted, again. It’s an unusual case, but a good reminder of the kinds of political risk you face when you invest in a country. To paraphrase Walter Wriston’s famous comment, “countries don’t go bust, they simply decide not to pay their debts.”  Read the rest of this entry »

Avoiding bad publicity, European edition

July 20, 2014

I know, it’s not fair to make fun of Europe — but it’s so much fun! I hope Europeans will do the same for us, if there’s anything left after Stewart, Colbert, and Oliver are done. (Oliver’s American now, right?)  Read the rest of this entry »

Trucks and chickens, continued

July 17, 2014

Stan Zin weighs in. You’ll recall: In the early 1960s, Europe placed tariffs on US chickens. The US retaliated by placing a 25% tariff on imported trucks, which is still in place. Stan, and the trusty Wikipedia, adds:   Read the rest of this entry »