I have been talking to several economists here, and yet, it seems that nobody really knows what the heck is really going on in Wall Street now. Not enough information to feel either optimistic or pessimistic, which is the least kind of situation that you want to have.
Let's see tomorrow. Good night and good luck.
Update: Just read today's Kompas headline online, in the second line of the first lead paragraph, the daily said:
Lehman Brothers went bankrupt due to the carelessness of the CEO Richard Fuld, who is dubbed as "the gorilla".Umm, err... well, maybe (scratching my head). But what does it precisely mean? The rest of the article doesn't help me to understand this gorilla's fault, too.
Update 2, I've just learned from The Economist's Free-Exchange that AIG bailout might affect Manchester United too. They have to change the new logo (now the US Dept of Treasury) on their official jersey.
If I'm not wrong, Manchester United has a special clause in this force majeur case since United can make a mutual termination as soon as possible when they look the contract isn't reasonable to retain.
ReplyDeleteSo, I guess it doesn't matter for United. But, it will be interesting to see United with their new kits. Is their kits is more marketable?
from a historical standpoint it's hard to object to the government's mass bailouts since similar debt-producing methods were put into action to save the U.S. from the Depression; maybe we've been headed for socialism this entire time...
ReplyDeleteVote for against the current financial system, that is based on "RIBA" system.
ReplyDeleteit is just the problem of "interest rate", and what sharia economics said as a "RIBA".
it just make people are so greedy, and left them to always exploit the profit without considering the risk, and society.
let check what I wrote about "jeorpadized of financial globalization and inovation of technology"
lumpuhnya fungsi vital perbankan: bumerang kemajuan teknologi dan globalisasi keuangan
in
iamtheeconomist.blogspot.com
warmest regards
dias (ep ub)
dias, I have a genuine question to you: can we get rid the idea of interest rate at all --the time value of money as reward for postponing current consumption-- regardless the name you give to it?
ReplyDeleteAnd for empirical one, following what Timur Kuran pointed out in his book, Islam and Mammon: in practice, is the profit-sharing rate of return statistically different from the conventional interest rate?
And regarding to your notion of greed, alas, I have no economics tools in hand to prove it. Do you?
And how exactly, at least conceptually, the sharia system would prevent the current turmoil and its root, the sub prime mortgage crisis, to take place?
ReplyDeletewow, I need to buy the new jersey then!
ReplyDelete