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Oct 31, 2010

Financial & Forex info News:From BBC NEWS: Shangai bids , Brazil elections, Housing benefits cap to price



FROM
BBC News - Shanghai bids farewell to massive World Expo fair
BBC News - Brazil set to elect new president
BBC News - Housing benefit cap to price London's poor away - Shelter


NYT: Morning Business news


Why Twitter's C.E.O. Demoted Himself

By CLAIRE CAIN MILLER
Evan Williams may embody a classic Silicon Valley type: the inspired entrepreneur with good ideas for a start-up, but not the leader to execute a sophisticated business strategy.

Fox and Cablevision Deal Returns Signal

By BRIAN STELTER and BILL CARTER
Fox comes back to life in three million homes served by Cablevision just before Game 3 of the World Series.

Making Sure Nickelodeon Hangs With Cool Kids

By BROOKS BARNES
For the first time in years, Nickelodeon has momentum. It is searching for new franchises to fend off Disney Channel and cement its popularity with children and young teenagers.

The Washington Post: Today's Headlines & Columnists



TODAY'S HIGHLIGHTS

Republicans on the offensive as Tuesday nears; House could fall, Senate unlikely
Two days before Tuesday's midterm elections, Republicans appear poised to capture control of the House and are likely to make substantial gains in the Senate, an outcome that could dramatically alter the balance of power in Washington, according to a Washington Post analysis of competitive seats ...
(By Dan Balz and Chris Cillizza, The Washington Post)

Sanity and fear, meeting in the middle
(By Jason Horowitz, Monica Hesse and Dan Zak, The Washington Post)

Investigators link package explosives to al-Qaeda bomb-maker in Yemen
(By Peter Finn and Mary Beth Sheridan, The Washington Post)

Redskins' Donovan McNabb acknowledges season not up to his standards
(By Barry Svrluga, The Washington Post)

More Today's Highlights

POLITICS
Voter unrest echoes that of 1994, poll shows
Voters across the country are deeply unhappy with the performance of the Democratic Congress and as dissatisfied with how Washington works as they were in1994, when Republicans took control of both chambers, according to a new Washington Post-ABC News poll .
(By Jon Cohen and Dan Balz, The Washington Post)

Obama makes closing arguments before Election Day
(By Nia-Malika Henderson, The Washington Post)

Republicans on the offensive as Tuesday nears; House could fall, Senate unlikely
(By Dan Balz and Chris Cillizza, The Washington Post)

More Politics


NATION
Republicans on the offensive as Tuesday nears; House could fall, Senate unlikely
Two days before Tuesday's midterm elections, Republicans appear poised to capture control of the House and are likely to make substantial gains in the Senate, an outcome that could dramatically alter the balance of power in Washington, according to a Washington Post analysis of competitive seats ...
(By Dan Balz and Chris Cillizza, The Washington Post)

Sanity and fear, meeting in the middle
(By Jason Horowitz, Monica Hesse and Dan Zak, The Washington Post)

Investigators link package explosives to al-Qaeda bomb-maker in Yemen
(By Peter Finn and Mary Beth Sheridan, The Washington Post)

More Nation

WORLD
Investigators link package explosives to al-Qaeda bomb-maker in Yemen
Investigators examining explosives found in packages intercepted in Britain and Dubai suspect the material, preliminarily identified as PETN, points not only to the role of an al-Qaeda affiliate in Yemen but to a sophisticated bomb-maker who last year sent his brother to his death in an effort to...
(By Peter Finn and Mary Beth Sheridan, The Washington Post)

More World

METRO
Mysterious stranger returns coat, and cash, lost on Metro
Dear Dr. Gridlock: Iwanted to share a story and ask for your help. Yesterday afternoon, I exited a Red Line train at Metro Center and realized that I was missing my sport coat, with my wallet in the breast pocket.
(The Washington Post)

More Metro

BUSINESS
Google TV isn't ready for prime time
Google designed its Google TV software to bring the diversity of Web video to your TV without the complexity of the personal computer.
(The Washington Post)

More Business
 

NYT ALERT : FGC BOLSA - FGC FINANCIAL MARKETS . Innovation Isn’t a Matter of Left or Right


Alert Name: FGC BOLSA - FGC FINA
October 31, 2010 Compiled: 1:10 AM

BUSINESS DAY

Most people assume that market forces drive inventions. But over the last two centuries, collaborative, nonproprietary innovation has eclipsed, and transformed, the marketplace.

The moral Equivalent of Stagflation: Paul Krugman - New York Times Blog




October 30, 2010, 7:14 am

The Moral Equivalent of Stagflation

Martin Fackler and Steve Lohr have a good article this morning on parallels between the United States and Japan; regular readers know that I’ve been on this for more than two years. And the possibility of such a parallel was the main theme of the original version of The Return of Depression Economics, which I wrote way back in 1999. Domo arigato, Bernanke-san.
What I don’t think is fully appreciated yet — and may never be, for reasons I’ll explain in a bit — is what this American remake of The Bad Sleep Well should be telling us about economic theory and policy.
Let me offer a parallel: the stagflation of the 1970s.
Stagflation had a huge impact on economic thinking. Why? Mainly because it was predicted: the Friedman-Phelps natural rate hypothesis said that the apparent positive trade-off between inflation and unemployment would prove only temporary, and that once inflation had gone on for a while, disinflation would involve a period of both high inflation and high unemployment.
So when that condition actually materialized, it gave huge prestige to the whole program of grounding macroeconomic models in micro-economic foundations. When I was in graduate school, which was just when the saltwater-freshwater divide was beginning to widen, I remember some of my classmates arguing that we should believe what the Chicago guys were saying — after all, they’d been right so far.
Of course, stagflation also gave a boost to the political right, although with much less justification; to this day, right-wingers basically wave the bloody shirt of stagflation to justify any and all opposition to government programs.
So what’s the parallel with the Nipponization of the U.S. economy? Well, like the stagflation of the 1970s, our current predicament was predicted well in advance. Liquidity-trap theorists — yes, with me playing a large and early role — told you what would happen if the economy suffered a sufficiently severe negative shock, one that pushed us up against the zero lower bound. We predicted, specifically, that:
1. Increases in the monetary base would fail to increase broad monetary aggregates, let alone boost the economy
2. Despite large monetary base expansion, the economy would slide toward deflation, not inflation
3. Despite large budget deficits, interest rates would stay low, because short-term rates would stay pinned at zero
All of this was, like the natural rate hypothesis, grounded in a basic theoretical approach, embodied in simple models.
Everything that has happened these past two years has fit that basic model; meanwhile, those who failed to accept the implications of the liquidity trap have been wrong over and over again.
But here’s the thing: I see no signs of a rethink among most players. The slide toward deflation despite huge increases in the monetary base hasn’t shaken either the paleomonetarists who still predict hyperinflation or the it’s-all-the-Fed’s-fault crowd. The failure of interest rates to soar hasn’t shaken the deficit hawks. Instead, the usual suspects have taken the failure of an inadequate stimulus to produce a solid improvement in employment — a failure I, among others, predicted! — as proof that they were right.
It’s disheartening, to say the least. You really have to wonder if economics has become completely unmoored from evidence, whether anything can ever convince anyone that they were wrong.