Top Seven Blogs – Last Seven Days

I thought that it would be interesting to share the links to my top seven blogs published in the last seven days (listed in order, with most popular first, ranked by number of hits):

  1. An in Depth Look at Deleveragings – Ray Dalio – Bridgewater
  2. A Hard Look at Psychology and the Financial Crisis – Ian Hughes
  3. We have good cause to abhor the surveillance state – FT.com
  4. A Hard Look Beyond the 13,000 Needless NHS Deaths – John Gelmini 2/2
  5. BBC World Service – Exchanges: The Global Economy, Exchanges: The Global Economy, Joseph Stiglitz (audio)
  6. We have to wean Britain off the drug of immigration – Telegraph
  7. Germany Has Created An Accidental Empire – Ulrich Beck – Social Europe Journal

Any thoughts?

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An in Depth Look at Deleveragings – Ray Dalio – Bridgewater

No Growth, Easy Money - The New Normal?: Ray Dalio

No Growth, Easy Money – The New Normal?: Ray Dalio (Photo credit: World Economic Forum)

This is an excellent article looking at good, bad and ugly deleveraging experiences over the last century. It is written by Ray Dalio, billionaire,  head of the World’s largest hedge fund operator, Bridewater Associates. I STRONGLY RECOMMEND this article for a deeper understanding of the deleveraging debate underpinning the argument of the austerian politicians in the  US, the UK and Germany.

Open this link to read the article which is in PDF format.

The article is quite long but easy to read with lots of interesting colored charts.

Based on historic precedent, I think that there is hard evidence that austerity has been too severe in many countries since the financial collapse in 2008, especially in the UK and Southern Europe.

Good national economic house-keeping as advocated by Germany makes excellent sense but as this article explains there are different rates of pain associated with different deleveraging strategies; also and most critically because of the Euro and the European Commission, Southern European countries do not have a full range of economic policy tools, both in terms of fiscal and monetary policy.

Any thoughts?

 

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