Category Archives: Economics
Six Billion Dollars
Q: What do you get for spending 6 billion $ on an election campaign in the US? A: You maintain the status quo. The President is re-elected, the House of Representatives remains Republican and Democrats maintain their majority in the … Continue reading
No donations for victims of Sandy
After the havoc and destruction caused by Hurricane Sandy in the Caribbean and in the Eastern United States, appeals for help and donations have popped up as reliably as Christmas chocolate will hit the shops around this time of the year. … Continue reading
What did Jérôme Kerviel do wrong?
Today, an Appeals Court in France upheld the conviction of Jérôme Kerviel, a former trader with the French bank Société Générale, sentenced him to serve time in prison and ordered him – rather symbolically I assume – to pay 4.9 billion … Continue reading
Shrinking Lithuania
Now I understand why it was so easy to find a beautiful and affordable apartment when I moved to Lithuania: The population of Lithuania is shrinking. It has fallen below 3 million, meaning that this cute little country has lost … Continue reading
“Grapes of Wrath” by John Steinbeck
Since 2008 or 2009, I have heard the expression “worst recession since the Great Depression” more times than banks have asked for another bailout. I got tired and fed up by that constantly repeated statement because as little as I know … Continue reading
You don’t understand how banks work? Watch this!
Monty Python explain the business of banking. Surprisingly topical.
Most Important Investment Advice # 3
After the success of the first and second part of my investment advice series, here is the third most important investment advice: Don’t save anything for retirement. You have no idea if your now will even like the kind of … Continue reading
Milton Friedman, 1912-2006
If there was a market for Milton Friedman, he would still be around. To be fair, he actually influenced my economic and political thinking a bit, especially in my younger years. I liked the general liberal outlook and the idea … Continue reading
Spain’s Banking Crisis is no Surprise
If a bank cannot even build a straight office tower, how can you expect it to keep a straight balance sheet? The headquarters of Bankia in Madrid, Spain:
The Second Most Important Investment Advice
My second most important investment advice: Don’t save anything while you are married. When you get divorced, your wife will take half of it. Most of the rest will go to lawyers. Don’t forget to have a look at my … Continue reading
The Happy Hermit 