Sunday, November 23, 2008

Beautiful Bubble

Atlantis the Palm Hotel in Dubai had a grand opening recently, which cost about $1.5 Billion.
Amazing show! Here is the intro video of the Hotel.

Thursday, November 20, 2008

7 Tips to Get the Bailout

Funny tips for getting the bailout from government.
But Big three CEOs used their ways to DC...... so no bailout!

Tuesday, November 18, 2008

Nobel Economists Offer First Aid for Global Economy

SPIEGEL asked five previous winners of the Nobel Prize for economics to provide their own advice for what world leaders should do.
Even the Godfather of free market - Robert Lucas also calls for a overhaul of financial regulation.

And finally I see Wall Street firms make a smart, correct, and self-regulated move. See Goldman Sachs and UBS.

Friday, November 14, 2008

Hedge Fund Testimony

Congress grilled five of the country's top hedge-fund managers.
It is a 2-hour testimony.

Too Big To Fail

Minneaoplis Fed President came to Winona State to give a speech to our students.
Here is the script about the issue of "too big to fail."

Monday, November 10, 2008

Wednesday, November 5, 2008

New President

It is exciting to see Obama to be the next President of the US.
One of the reasons of his win is economy. People said:
1992 - It is the economy, stupid!
2008 - It is the stupid ecnomy!

So how to deal with the economy from now on?
My view is as follows,
1. Increase government spending on infrasturure (more public transportation in metro area), human capital (K12 education system), alternative energy research.
2. Let the Fed do his job.
3. Financial system overhaul. There are so many principal-agent problems out there. The smart regulation is needed.
4. Before we recover from the current recession, put buget deficit problem aside.
5. Before we recover from the current recession, don't think about increasing tax on the rich!
6. If we want to deal with income inequality issue, work hard on reducing health care cost. The current system is a complicated mess.
7. After we recover from the current recession, increasing consumption tax is better than income tax. We should save a little bit more. Current account deficit is an issue we have to face finally.
8. In the long run, a little more tax on gas consumption (Pigou Tax) and securities trading (Tobin tax) sound good to me.