November 9, 2009
If you give people money to buy things, they’ll buy more than if they are using their own money. The less skin in the game, the more risk they will take. That’s the essence of what Yale economist John Geanakoplos calls “leverage cycle” theory. An article in the Wall Street Journal last [...]
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October 1, 2009
Let’s take a step back and look at some of the big trends that are driving the consumer economy.
First, the change in private-sector employment. While the month-to-month employment figures have been moderating, we are still looking at the loss of 7 million jobs in the last two years. That makes people feel insecure [...]
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