Understanding the credit crisis

In an earlier post (see here) I put a link to an online book that explains all the main concepts of economics in terms of the classic 'Island Economy'. If you think about it in theoretical terms, this book is a 'proof' that the Island Economy is a sufficiently rich model into which many important … Continue reading Understanding the credit crisis

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Economics book with cartoons, online for free!

I'm on a roll with Economics, getting through books and articles at a tremendous rate. But this one is a gem. Written by Irwin Schiff (read about him on Wikipedia do), it's available here as a free-to-download pdf. His sons Peter & Andrew have published their own version of the story which reflects historical events more … Continue reading Economics book with cartoons, online for free!

What does ‘reduce the balance sheet’ mean?

This post is a LeanPost: it will be developed further depending on feedback from my readers. See my note here on what a LeanPost is. Many companies are these days talking about reducing the balance sheet. Another term used is de-leveraging. In the simplest terms, this just means that a company is reducing the number of … Continue reading What does ‘reduce the balance sheet’ mean?

The current crisis in historical perspective

This short post is primarily to give links to three excellent articles on macro economics by Ray Dalio, founder of Bridgewater. The first, a 'template for understanding' how economies work, is better than anything I have ever seen in introductory books on economics. The other two articles take a closer look at the dynamics of debt and … Continue reading The current crisis in historical perspective