Yes, Prime Minister?

More Krugman – Moment of Truth – NYTimes.com. “Let’s talk about where we are right now. The current crisis started with a burst housing bubble, which led to widespread mortgage defaults, and hence to large losses at many financial institutions.

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For every DOWnside, there’s an upside.

With the DJIA falling below 9000 points today, it’s reassuring to know that, right? Paul Krugman, in his Blog at the NY Times reminds us that “[o]n a separate note, one good thing is that there haven’t been any reports of people on Wall Street jumping out of windows.

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Kein Spekulatius

Helmut Schmidt ist wahrlich kein Oskar Lafontaine. Daher ist es auch immer lesenswert – wenn auch nicht immer zustimmungspflichtig – wenn er sich in der Zeit zu Wort meldet: Wenn er, wie in diesem Falle, die gesellschaftliche Kontrolle von zur Zeit unkontrollierten Kapitalclustern fordert, dann stimme ich ihm darüber hinaus auch grundsätzlich zu – Helmut […]

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The worst part may be over.

Germany’s economy has had a rather rough ride in the last couple of years. A lot of the problems from weak investment to rising unemployment had not only to do with changing global markets and slow German coordinational reaction, and reappearing distributional conflicts in the light of slower growth, but also with a fundamental shift […]

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On German-American Day, …

„… we also honor the important friendship between the United States and Germany. Our nations share beliefs in human rights and dignity, and on this day, I join all Americans in celebrating the bonds that tie our two nations and in reaffirming the importance of our continuing friendship.“ (via germany.info) Leaving the the podium the […]

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Shorter IG Metall.

„You can be as flexible as you want to, work as much as you want to, earn as much as you want to – but only if we allow it.“ In a move displaying the current hipocrisy of German trade unions in all its beauty, IG Metall, the poweful metal worker union, struck a deal […]

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Lazy? And Happy?

The Economist ponders about a self-regulation mechanism adjusting the European work/leisure trade-off in favour of work. Even in lazy Germany. But it also reviews this year’s LSE Lionel Robbins Memorial Lecture by Richard Layard [pdf] who presented new insights into the hypothesis that more doesn’t always, in fact, usually, make you happier. So working more […]

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Way To Go: Germany On The Move

Sure, one has to be extremely careful when citing a sitting chancellor’s opinion that things are going well. But when Gerhard Schroeder opened today’s Bundestag debate by saying that „Germany is willing to change [economically], Germany is on the move“ he is right. It wasn’t his reform „Agenda 2010“ in the sense that people think […]

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Stefan Smalla explains

Stefan Smalla explains why US litigation laws are probably a serious health hazard to all of us. I wonder if it will one day be possible to sue a government for inaction about such problematic institutional set-ups?

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Conspiracy theories in the FT?

Quite to the contrary argues Paul Krugman in today’s NY Times oped piece – the FT is just waking up to the cold and scary truth of how America is being turned into a „Banana Republic“ by a semi-feudalist governmental gang – „The Financial Times suggests this is deliberate (and I agree): ‚For them,‘ it […]

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Zeitenwende. End Of An Era.

It took some time and more of their money to make Germans understand. It took more than ten years of subsidizing consumption and unemployment in a previously bankrupt former communist economy and virtual non-growth to make us see that it is not only necessary to think about the problematic long-term consequences of the current incentive […]

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Two Steps To The Left, And One To The Right.

Dancing is almost never easy for men. It’s not just that most male grown ups are too inhibited to just let themselves go. It also seems that male physical coordination seems to be far more adept in everything that involves less step-sequences more balls. Unfornuately for Gerhard Schroeder, this problem becomes especially apparent when it […]

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Ze Tschermans Are Coming

I wanted to write something about the appropriate perspective concerning Kraut-bashing in the UK, following some recent reports in German and British newspapers. But I am too tired to finish it now. So I will do that tomorrow and leave you for tonight with this link to The German Theory that a google search for […]

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Laffer’s back.

This week’s „Der Spiegel“ is concerned with the increasingly problematic relation between nominal tax rates and actual fiscal revenues in Germany. The Cover-wide headline asks „Why the state is asking ever more money from its citizens but gets less and less of it“? Its a good question – one with a simple theortical answer (that, […]

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More about the 19% of millionaires mentioned below

(Link) I don’t know what kind of organisation the group „citizen’s for tax justice“ are. So I would not rely too much on the information – but in case they are reporting correct figures for the averge US income (and the ranges seem not implausible – note: not GDP/capita but income per working person) on […]

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