Monday, October 13, 2008

Of economics and related news

This is one of the better explanations of the credit crisis that I have read. It explains why the mark-to-market rules precipitated a major collapse. It explains why government guarantees of certain transactions is proving to be so effective in the UK. It also alludes to reasons why the latest Paulson plan, i.e. buying equity in the banks, may prove the best solution yet.

In other economic news, Paul Krugman just won the Nobel Prize for economics.

This is a very interesting perspective on the crisis from George Soros.

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