Learned Helplessness in Democracies and Economies

In my article of September 01st 2010 “Thinking Ourselves Into Another Recession” I discussed how psychology plays a critical role in the well-being of an economy.  Using the paradigm of eating disorders, we discussed how: “…When we talk of economic confidence, business confidence, or even confidence in global markets, we are talking of the mindset of the majority of participants in that market.   In a ‘booming’ market, participants feel happy, with little sense of risk-…

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Basel III – Thicker Gloves in a Boxing Match

As the Economist reported, “On September 12th the Basel Committee, a club of supervisors and bank regulators, finally reached agreement on how much extra stuffing needs to go into the cushions [of banks] to absorb losses and buffer the financial system against the next crisis.” The “Basel III” recommendations set out the revised global minimum capital requirements for banks.  As Felix Salmon (Reuters) analyses, “Possibly the most important thing here is the existence of the…

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Thinking Ourselves into Another Recession

Reporting on the increased perceived risk of a double-dip recession, the Huffington Posted noted how there is “..a growing sense of doom among some prominent economists“.  They went on to cite Nouriel Roubini, the cofounder and chairman of Roubini Global Economics and a professor at New York University’s Stern School of Business, who stated the, “Risk of a double dip recession in advanced economies (US, Japan, Eurozone) has now risen to 40%.” along with Mohamed…

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