Links: 2009-06-14
- Geithner’s Plan on Pay Falls Short – Yves SmithGeithner is not going to interfere in private companies’ ability to make executive contracts. What is the likely outcome for pay then? How can pay be reformed?
- What is Different this Time? – Rob Parteneau“Our beef with the equity market boils down to this: the widespread perception is that the old global growth model, dependent in no small part on the willingness of US consumers (and other consumers in the developed world) to deepen their deficit spending, can and will be revived. We would merely suggest with the level of household net worth to disposable income back to a level last seen in 1995 (before household deficit spending began), and with households extinguishing debt for the first time in over half a century, this assumption deserves to be questioned. Humpty Dumpty may not be able to be put together again.”
- Six Flags Files for Bankruptcy – DealBook Blog – NYTimes.com
- Next, the Retirement Bubble – BarronsGood article that warns us that there is zero chance that we can all retire and sit around for the next 30 years living off our savings and the productivity of others. The coming generational storm is going to hit the U.S. as it already has countries like Japan, Germany and Italy. This article offers a potential solution for individual retirees.
- Paul Krugman’s fear for lost decade – WIll Hutton, GuardianThis long interview with Krugman outlines in detail his thinking on the global economy and regarding specific countries.
- FT.com – North Korea responds to UN with nuclear threats“North Korea said on Saturday it would start a uranium enrichment programme and weaponise all its plutonium in response to fresh UN sanctions, which the United States said it would work vigorously to enforce.”
- Where Are We Now? Five Point Summary – Simon JohnsonThis sums up quite well where we stand in the U.S. economy at present
- Most Livable Cities in the World: The U.S.? Not So Much. – Paul Kedrosky“Two recent takes on the most livable cities in the world, one from The Economist and one from Monocle. The U.S.? Not so much.”
- US cities may have to be bulldozed in order to survive – TelegraphThis is Victorville, CA writ large. With home prices having collapsed, I guarantee you housing stock destruction will be large. In the end, we should see this as testament to the malinvestment wrought on American society during this past decade – a testament to how low interest rates actually diminish growth over the longer term.
- Greenland Ice Sheet Melting Faster Than Expected; Larger Contributor To Sea-level Rise Than Thought – Science Daily“Study results indicate that the ice sheet may be responsible for nearly 25 percent of global sea rise in the past 13 years. The study also shows that seas now are rising by more than 3 millimeters a year–more than 50 percent faster than the average for the 20th century.”