In 1932, British author Aldous Huxley published the novel ‘Brave New World’. On 23 June 2016, 51.9% (Figure 1) of the British people decided to write their own version of a ‘Brave New World’ with a vote to LEAVE the EU. For many people around the world, the result has come as a shock given […]
From a speech given at the Olivetti day: “How to finance innovation and why it needs to be done.” Brescia, Italy, 16 October 2015 Italy is experiencing a period of extraordinary importance for its future. If current developments have positive outcomes, a virtuous circle could be created with the potential to launch a new and much […]
Several years into the most serious structural crisis of modern history, it is apparent that there are still a number of flaws, in both the current national and global economic system, that need to be addressed if the West is to resume stable and meaningful economic growth. We have already stressed and analysed various aspects […]
The recent Olympics were exceptional because they came during the most critical times in modern history. After five tumultuous years, the future of our society is still in the balance. We live in a period of deep structural economic crisis, political division, uncertainty, and yet no reversing trend is in sight. (Capitalism Without Owners Has […]
Blabbing on the Consequences of Oligopolies Is Futile: Break Up the Banks and Focus on Enterprises’ Growth
In the past five years it has been impossible not to repeat the same message about fixing the faults that brought the financial crisis. Yet, no progress has been made, and the flaws that caused the most significant structural crisis of modern history are still looming around like the stroke of midnight in a horror movie. The […]
Debating Hester’s Bonus and Mr. Fred’s Knighthood Is Futile: Focus on Volcker’s Rule and Break Up the Banks
Smoke and mirrors. Forcing RBS’s Stephen Hester to forgo some bonus and stripping Fred Goodwin of his knighthood, are only illusionist’s games; demagogic attempts in election times. The only real facts are the trillions of dollars of public money already spent to save the banks and the continuing government guarantee to monolith banks and other […]
Four years into the most serious structural crisis of modern history and it is apparent that there are a number of flaws in both the current national and global economic system that need to be addressed if a number of countries are to resume stable and meaningful economic growth. It is our contention that one […]
The huge compression of the investment horizon towards an extreme short term bias continues to be a major barrier to real recovery. A methodology to develop a direct capital flow between investors and the real economy is now desperately needed. Reflexivity, or simply put, the fact that markets have de facto no self adjusting mechanisms, should now be a most powerful wake up call to build the foundation of new economic and financial approaches; to explore new frontiers to save a declining West.
The assumptions of the efficient market hypothesis and self equilibrium, previously widely acclaimed, led to unsound economic decisions. They created an intellectual complacency that overlooked the risks behind the ongoing structural crisis. New concepts should guide our future analysis and build the foundations of a new economic and financial theory.
More than three years into the most significant structural crisis of modern history, the flaws that caused it are still looming around like the strokes of midnight in a horror movie.