Citigroup Bailout

Of course, the big news today was the Citigroup bailout.  The stock market reacted positively, up nearly 400 points, but many economists feel differently.  Check out Mark Thoma’s blog, Economist’s View, for a summary of reactions from experts like Paul Krugman and Robert Reich.  Meanwhile, President-elect Obama, while warning the economy is likely to get worse before it gets better, introduced his economic team today

Only the library’s most recent titles are really cogent to the economic challenges that have emerged in the last few months, but a few you might consider are:  The Great Crash of 2010:  How to Prosper in the Crash That Follows the Greatest Boom in History by Harry S. Dent; Bad Money : Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism by Kevin Phillips; and What is the Future of the U.S. Economy?, edited by Susan C. Hunnicutt.  I particularly like Kevin Phillips’ historical analogies of the U.S. economy with those of 16th/17th century Spain, 17th/18th century Holland and 19th/20th century England; he makes the argument that each of these economies, including our own, has undergone what he calls “financialization” — i.e., a shift from economic growth based upon manufacturing to reliance upon financial services such as credit and mortgages.  Yves Smith, in his blog Naked Capitalism, opins upon how financialization has gotten us into so much trouble — and continues to be a problem as “the powers that be” seek a solution.  His view is that it simply must shrink realitive to the real economy.  

Certainly we’ll also soon be adding Paul Krugman’s Return of Depression Era Economics and the Crisis of 2008.


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