31 January 2010

Botox Economy

The global economy is currently taking the "botox" cure. A flood of money from central banks and governments – "financial botox" - has temporarily covered up unresolved and deep-seated problems.
Satyajit Das on the Botox Economy.

26 January 2010

Pass the Parcel

It’s the last game of pass the parcel. When the tech bubble burst, balance sheet problems were passed to the household sector [through mortgages]. This time they are being passed to the public sector [through governments’ assumption of banks’ debts]. There’s nobody left to pass it to in the future.
David Bowers of Absolute Strategy Research

23 January 2010


Governments and central banks have dealt with symptoms but not addressed the underlying causes of the Global Financial Crisis.
Satyajit Das on the Botox Economy