Finance Geek

Europe and the international financial markets are two years deep into Greece’s sovereign debt crisis. Yet critical questions not only stubbornly persist, but indeed transcend everything that has been said and done by European leaders.  Late last month in Brussels those leaders presented their “grand rescue plan” for Greece. They continue to act as if just applying more and more of what they have been prescribing will alleviate the crisis. It will not. In fact, it will only make things worse. Why?
Today the EU, ECB and IMF - the so-called “troika” -…

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A little noticed Associated Press news story last week reported that China now plans to phase out college majors that consistently produce unemployable graduates. Any program in which 60% of the graduates failed to find work for two consecutive years would face funding reductions until supply was brought back into balance with demand.
This Chinese hand may not be invisible, but it would be one that Adam Smith would recognize. Isn’t it amazing that even self-identified communists are figuring out that markets only work when adjustment mechanisms act to reduce surpluses and shortages?…

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