Norman Macrae -The Economist pro-youth economist -bravo sir fazle abed & jack ma
From the last article of The Economist's pro-youth economist, Wimbledon 2008:
How to Avert a Great Depression Through the Hungry 2010s? Answer by making all banking very much cheaper
"If banks in rich democracies had been truly competitive institutions, at lest one of them somewhere would have seized the main opportunity created by the computer. This main opportunity was to make all deposit banking vastly cheaper than ever before. By such cheapening it should make such banking hugely more profitable. Then further competition would search out cheapest ways to guide all the world's saving into the most desirable forms of capital investment, this enriching all mankind.
Instead during 2008 the total losses of banks in rich democracies - in North America and wstern Europe - soared into trillions of dolars. Fearful of their solvency, tehse banks virtually stopped lending. The issuance of corporate bonds, commercial paper. many other financial products largesly ceased. Insurance firms crashed. Mankind is thus threatestened in the 2010s with its longest depression since the 1930s.
Why the strange answer seems to be other happy consequences of modern technology promised to make this cheapening even faster. The cost-effective way of running the old Midland or First nNational would have been tto cut its salary costs by an order of magnitude. This didn't please Western wekfare governments or banking chief executives.
Western welfare governments have long preferred to run their banks in high cost cartels, and even invented reasons why this seems to be moral. Their deposit banks have usually only kept in cash 10% of the total amount deposited with them. If 11% of depositors suddenly feared that their banks might go bust. this could accelerate a run that would send them bust indeed. Government therefore thought that the public would be less fearful if they were assured that the banks were officially and tightly regulated. Actually this meant that the banks had to hire even more expensive lawyers so as to escape any crippling consequences of the regulation. The bosses of the depost banks felt that the best way to avoid sacking most of their staff was competing with a very different sort of financing called merchant banking whose earnings and bonuses were far more generous than those given to their own staff. ..
Summer 2012 LSE Stiglitz Why creating a learning society is the only pro-youth economic way ahead -move to minute 6 minutes 45 seconds
NY Fall 2012: Krugman, Stiglitz - not as bad as the great depression but that was ended by war - will any leader end this depression? -move video on to minute 9
Krugman - what economists never learn - MIT summer 2012 - move to minute 3 sec50
www.cerge-ei.cz Fall 2011 Stiglitz - misinformation economists told us (eg give unbridled amount to banks) before, during and after the crisis of 2008 and 2009 and 2010 and ... move to 4 minutes 20
3 nobel economics prize winners discuss the holes in modeling development economics
how pro-youth economics of japan stalled 1990-1996, 1997-2008, whither 2009 on?
Norman Macrae Youth Foundation welcome opportunities to discuss Norman's last article with people in any open society where people are unhappy with banking , especially young people who could be enjoying the net generation as most productive time to be alive if economists, bankers, political supremos and other old guards were not perpetuating 20 pre-digital age monopolies that are anti-youth. Ask email@example.com for the whole article, or search these archives of Norman Macrae pro-youth economics maps published through the second hal of the 20th century in The Economist.
Back in 1972 Norman first observed experiments youth were making with early digital networks. He created the genre of Entrepreneurial Revolution to discuss how none of the 20th century's largest organisational typologies could sustain the net generation ,and as the first journalist of the net generation his 1984 book mapped how to generate 3 billion new jobs if and only if economics is mapped from the ground (community) up. What we need today is freedom of millions of youth to interact around the job creating innovation of grassroots rising networks- something that a segment of MOOC partners can do provided they choose suitable leaders to make 9 minute audio tapes with. Help us search out who those leaders are at www.wholeplanet.tv
Ref to short videos of economics in a right old muddle.
MOOCSOROS - last chance to save the world with pro-youth economics may be george soros and his choice of open society economists and entrepreneurs-
1 go to his web http://ineteconomics.org
2 sort out hundreds of videos of muddled economists into 3 minute pro-youth economics audios
3 tell us htp://normanmacrae.ning.com what you make and we'll try and help mooc you and soros
4 also if you love open society, please celebrate http://www.bkash.com and http://www.brac.net as much as soros does