economics

New Regulations, Wall Street Bonuses, And The Economy

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Even if you're not the economic type, at least skim this article on how Wall Street is adjusting to new regulations and new realities.  It's an interesting overview of what's going on, and codifies a few trends I've been wondering about (roughly, I think Wall Street really is in a kind of existential crisis and people don't fully get the impact of new regulation).

My favorite money quote:

“If you’re a smart Ph.D. from MIT, you’d never go to Wall Street now,” says a hedge-fund executive. “You’d go to Silicon Valley. There’s at least a prospect for a huge gain. You’d have the potential to be the next Mark Zuckerberg. It looks like he has a lot more fun.”

Awesome.  Come on over guys, I know a great few restauraunts to take you to while you go and make a real, productive business.  Also, I could use another roommate.

– Steven Savage

Harper’s Article on “Stopping Payment” on Homes and More

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Worth Reading: Harpers look at movements to take on banks over MERS and stop payments on loans. It's hefty reading, so it may only be for the dedicated, but I'd take a gander.

Essentially between the MERS mess people can take on the banks, it's got a bit of a movement behind it. This is reminiscent of other movements dealing with financial law, and might just combine with similar movements (anti-tax, state sovereignty, local control, etc.). It also has potential to combine with Occupy Wall Street.

It also means that the anger with the housing mess has a chance to mutate into something else, and banks have to keep up  . . . which they're not to good at.

– Steven Savage

Norway Butter Crisis

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OK normally I post serious geeky economic news, bordering on the depressing, but as your geekonomist du blog, I have to share this story that is a great reminder of how social trends affect economics.

Norway is running out of butter.

Why? Because of a low-carb diet trend and some bad weather. Oh and they could get more butter from Denmark, but Denmark apparently isn't selling because of high import duties.

So next time you see some weird or odd trend or fad, pause for a moment, don't laugh, and ask yourself just what it's real-life economic impacts may be. The iPad may be cool, Skyrim may be awesome, but there's also a trend effect there.

Also, Norway Butter Crisis is an awesome name for a band or an MMO guild.

– Steven Savage