Tag Archives: Failure

  • Blog
    Daniel Kaesler | Dreamstime.com

    Why Our Central Planners Are Breeding Failure

    Mistaking illusion for lasting success
    by charleshughsmith

    Thursday, January 15, 2015, 3:50 PM


    As counter-intuitive as it may sound, success rather reliably leads to failure and destabilization.

    In the macro-economic arena, I think it highly likely that the monetary and fiscal policies of the past six years that are conventionally viewed as successful will lead to spectacular political and financial failures in 2015 and 2016.

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  • Insider
    Wikimedia (public domain image)

    The 6 Reasons The Next Economic Rescue Will Fail

    Why the current unstable 'recovery' must topple
    by charleshughsmith

    Thursday, January 15, 2015, 3:48 PM


    Executive Summary

    • The 6 Factors
      • Rising inequality
      • Reversion to the mean
      • Cost overages
      • Diminishing returns
      • Misleading measurement
      • Expertise mismatch
    • Why the 'success' of the Federal Reserve and other world central banks is ultimately dooming them to failure

    If you have not yet read Why Our Central Planners Are Breeding Failure available free to all readers, please click here to read it first.

    In Part 1, we examined a variety of reasons why the apparent success of Keynesian monetary and fiscal policy may be transitional and brief rather than permanent.

    Here in Part 2, we delve into the six other dynamics that make success destabilizing.

    Rising Inequality—Perceived and Real

    The highly touted “recovery” has been highly uneven in its distribution. The benefits of rising income and wealth have flowed disproportionately to the top 5%, 1% and even 1/10th of 1%.  Those who didn't make it onto the limited-seating Recovery Bus feel the gap between the prospects and wealth of the top tier and their own wealth and prospects widening. Indeed, psychological studies find that we assess our wealth and social position not by our actual material prosperity, but by the narrowing or widening of the perceived wealth gap with our peers.

    This is precisely the situation in the U.S. and China. Both economies are supposedly expanding smartly, but the gains are concentrated in a relative few hands; the Rising Prosperity Bus has few seats.  The vast majority perceive themselves as being left behind, and that is highly…

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  • Blog

    Daily Digest – Jan 17

    by Davos

    Saturday, January 17, 2009, 2:26 AM

    • Paulson Predicts Banks Are Done For, Shares Drop 
    • Stimulus may bolster dairy industry 
    • Famine USA—7 million dead (1930s Depression) 
    • Clear channel plans revamp
    • Hertz to cut more than 4,000 jobs 
    • Layoff Watch: 11,000 From GE (GE)? 
    • Circuit City to liquidate remaining US stores (34,000 Employees) 
    • Astonishing Worker Layoff Count Today 
    • Rescue of U.S. banks hints at nationalization 
    • Calif. tax refunds to be delayed starting Feb. 1
    • Stimulus plan repeals big tax break for banks 
    • Report: Over 8 in 10 corporations have tax havens 
    • Harsh turn of fortunes for 2 huge U.S. banks  
    • Citigroup Splits Into Two After Losing $8.3 Billion 
    • Paulson, Bair Raise ‘Aggregator Bank’ for Toxic Debt  
    • Foreclosure Heat Map
    • 2009 Bank Failure #1: National Bank of Commerce, Berkeley, IL 
    • Umpqua Bank Acquires the Insured Deposits of Bank of Clark County, Vancouver, WA (Failure #2, 2009) 
    • Can You Help?

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