Archive for US politics

New Deal Means A Sort of Old Liberal Keynesianism

Yesterday I noticed an interesting trend on the financial investments blogs – many started to talk recently about a New Deal. Which is normal, don’t get me wrong – with stagflation and investments decimated in the US, with the BRIC markets trailing behind expectations and a sluggish Europe, things look hardly “rainbowy” for the global asset managers.
Which of course gets the economic policy makers and thinkers worried. Especially in the US, the world’s powerhouse in economics 101. No wonder that famous and serious bloggers, such as Rortybomb, turned their attention to that. After all, what’s easier than taking an old wheel, polishing it and using it to restart a virtuous economic cycle?
My short answer is – everything. The neo-liberal thinking pushed the US economy in this prolonged recession – by allowing the US government to throw billions of dollars into several sector’s arms which used them sub-optimally. Of course, all those blogs are against this policy. Or pro this policy with changes (big or small).
Then, what’s the problem? Why do I argue for a new paradigm?
It is very simple. It is called “behavioral finance”. And NLP. 2 in 1, crash course my friends:
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Interesting US Elections – Will The Businessman Win?

We are still on an early stage of the US elections, yet the battle is hot. Mitt Romney, the ex-Bain executive, famous for his jobs creation/destruction yin yang, is spearheading the Republican army. Still, since his victories are not decisive, but rather marginal, which saps the Republican convictions that he is the right candidate. Actually this is the core question – is Mitt Romney good for United States at this stage?
On one hand, he claims he has created in his business career more than 100,000 jobs via its decisions. This is a good thing for an economy still at the bottom of the recession after several years of financial crisis decline. Never mind these jobs were created mostly in retail – or that they added millions of dollars for the Bain’s shareholders. The point should be taken – and so the consequences
On one hand, his business experience is far from qualifying him for the top spot of the world superpower that US is. He is rather a classical type of politician, not the heavy hand that US sometimes needs. Well, this might actually be a benefit for a country who far too often slammed the fist on the table demanding his will to be obeyed. But at the end of the day, his global business experience is far from replacing a global political game experience.
We are too early to predict Romney’s success or failure. Never mind, he will be a very interesting change for the US, should he win. Whilst Obama brought a major change by listening to the masses and promoting leftist measures, Romney might bring a much needed balloon of oxygen for the struggling US businesses. And at the end of the day this could make a major differences because “it’s all about the money”, right? Maybe..