Stocks and Employment: Long-term Relationships

According to the classical economists David Ricardo, John Stuart Mill and others, there are three components of capitalistic economies: land, labor capital and financial capital.  In this article we will focus on the second and the third. Here are two interesting graphics from chartoftheday.com which give two factoids: The inflation adjusted value of the S&P 500 …

Banks: Flawed Regulation

Reversing the robotic gigantism of banking ought to be the top priority for reform. Bankers were once supposed to know every borrower, and to make case-by-case lending decisions. Now, however, banks use models conjured up by faraway financial wizards to mass-produce credit and a range of derivative products. Mass-production favors the growth of mega-banks, so, unlike the misjudgments of lending officers, these behemoths’ defective models have had disastrous consequences.