All 2 entries tagged Finance

Keynes and the credit crunch

For those who like economy an amazing article I found about the credit crunch, more specifically about how to deal with it using Keynes ideas. Keynes was a British economist that became the most influential economist of the 20th century (some might say that Friedman was more important, but I prefer by far Keynes and for the reasons specified on the article the reason for that is getting more obvious now).

So if you like economy and finance, and would like to learn a bit more about Keynes, Keynesianism and hos his ideas are probably going to help taking us out of this economy problem, see the link bellow. Very simple and well written article.

http://www.telegraph.co.uk/finance/comment/rogerbootle/3264845/We-now-face-Keynesian-conditions-and-need-truly-Keynesian-solutions.html

F.

: 27 Oct 2008 19:55 |  Tags: Article Credit Crunch Finance Keynes Mbe |  Comments (6) |  Close comments |  Report a problem

Some real examples of greed.

Writing about Greed from Kang's blog

I was reading Kang`s (Louis) entry on his blog about greed. I`m sure he was inspired by the lecture we  attended on Friday about the credit crunch (by the way, great lecture this time the tutor spent quite sometime explaining some basic economy concepts that are fundamental to the understanding of the whole thing). I have my personal opinion about the CC, but I wanna talk about two things I`ve seen in my life, real stuff, real experience that will help illustrate both what the professor and Kang said.

1st. I`ve been working in banks for quite some years now. I`ve always worked on international Banks from different countries. I`ve worked in several different areas and projects. I`ve worked in some different cities as well. All these things change people. For example, working for a British bank is very different from working in an North-American one. Several differences in recognition policies, pace, style, priorities, etc etc. But there`s something that is ABSOLUTELY the same in every bank (and from my experience it is the same all over the world). The traders (these are the guys who really decide what to make with the banks money, were to lend, from whom to borrow, what rates to pay, what rates to accept, etc etc ) are young, addicted to gambling and taken risks, self-confident and VERYYYYYYYYYYY well paid. I`ve seen people with 28, 29 years old, little experience and no managing of people getting paid as much as people with a 25-30 years career, managing structures with hundreds of people, etc etc. They usually don`t have a high paycheck, but they`re bonuses.....It`s funny because most of them don`t stay that long as traders. They usually make a lot of money in a few years and them go to open they`re own business, go to work in other areas of the financial industry with a different profile (Mergers & Acquisitions, counselling, etc etc). I `ve asked many people (and human resource professionals as well!) why there was such a difference. The logical explanation is that it`s hard to find appropriate and qualified people from the job, and there are only very few spots. I think that explanation is not complete. It sure has it`s logic, but I don`t think it fully explains this because even though a certain profile (personality wise) is needed, the technical knowledge itself can be learned by anyone with a reasonable background in maths. The rest is pretty much a consequence. There`s another interesting explanation. It says that people are paid not for the amount of the money they bring to the organisation, but by the amount of money they can make the company loose. In the light of the credit crunch recent facts, that second explanation does make a lot of sense, doesn`t it?

: 20 Oct 2008 17:52 |  Tags: Bankig Banks Credit Crises Crunch Economy Finance Gbe Greed |  Comments (8) |  Close comments |  Report a problem