British inflation hits nine-month high, further rises likely

In February, consumer price inflation rose to 2.8 percent, after holding steady at 2.7 percent since October, and looks set to rise further. The number, however, would probably not reduce the chances that the Bank of England will sooner or later pump more money into the economy to stimulate the stagnant economy because they are more interested in growth than in inflation at the moment. High inflation has reduce British households' disposable income, and a further rise will be a concern to the government regarding the decreasing consumption. The Bank forecasts inflation will exceed 3 percent later this year due to upward pressure on the cost of imported goods and raw materials caused by sterling's near 7 percent slide against the dollar since the beginning of 2013 and higher utility bills. What could be expected from the Bank of England to help better the situation? The arrival of new Bank governor Mark Carney in July may bring some changes, but more importantly, stopping any further sterling fall would be necessary because of its damaging consequences on inflation.

Source: http://uk.reuters.com/article/2013/03/19/uk-britain-inflation-idUKBRE92I0AI20130319

British economies struggling to maintain spending

http://www.economist.com/news/britain/21573132-britains-squeezed-households-largely-explain-countrys-flatlining-economy-dropping-shopping

This article states that the British economy is starting to see less and less people care about spending due to low growth rates and high price fluctuation. With the average growth rate being 2 percent right now and the average price increase on goods is at 3 percent. Also with the average person having only about 15000 dollars in spending money per household after taxes and mortgage payments, leaving very little income. This is tough on the European economies and the recession has hit everyone including overseas.

Venezuelan opposition leader promises to cut subsidized oil to Cuba

http://www.reuters.com/article/2013/03/18/venezuela-election-idUSL1N0CA8MN20130318

Venezuela has elections on April 14 to decide the President after the death of Hugo Chavez. The two candidates are the current acting President Nicolas Maduro and the opposition candidate Henrique Capriles. Nicolas Maduro is seen as Chavez's successor.

Henrique Capriles has stated that he would end the export of highly subsidized oil to Cuba if he comes to power. Under Chavez, Venezuela was exporting large quantities of oil at extremely cheap prices to Cuba, a communist nation and a Venezuelan ally. This is a major burden on the Venezuelan economy, which is already suffering from low growth and high inflation. Stopping the export of a 100,000 barrels daily to Cuba would provide more resources for the domestic economy and would help reduce inflation. This would also allow foreign companies to access some oil reserves in Venezuela and sell them at a near market-price rate and not the state-decided price.

Maduro is expected to maintain Chavez's style of governance which would focus on nationalization and socialism. It would be interesting to see how Henrique Capriles would change Venezuelan economic policies if he comes to power

Federal worker pay freeze likely to be extended

http://money.cnn.com/2013/03/15/news/economy/federal-worker-pay-freeze/index.html?iid=SF_E_River

Many federal workers will suffer from a continuation of the two year pay freeze. This will extend the pay freeze to December 31st. This lack in pay raises will hurt many federal workers as they were expecting to see a .5% raise in pay by next month. On top of this, the budget cuts that were recently implemented are forcing many federal workers to take a 20% pay cut for five months. Plus many agencies have started hiring freezes, so this begs the question of is too much of the federal budget deficit problems being put on the backs of the federal employees?

What Does Cyprus Mean?

After reading about what is happening in Cyprus over the weekend, the question naturally arises: are they handling this the right way? Why the Bank of Cyprus? Will this be a trend across Europe? Will the run on The Bank of Cyprus be a damning blow to a recession recovery already stunted by a slightly strengthening Euro?

Over the weekend it was announced that a percentage of all deposits in The Bank of Cyprus will be taxed. This so far has caused an uproar, and a run on the bank. People were given the incentive to pull their money and find a new safe haven, however many were unable to get their money when they needed it. Michael Gayed recommends rotating out of equities at this point, and migrating to precious metals or bonds to weather this storm. If your investment strategy is aimed more towards "timing" the market, then this strategy is for you.

Is this the start of a long depressing trend in Europe?

http://www.marketwatch.com/story/if-cyprus-is-the-butterfly-is-gold-the-pesticide-2013-03-18

China Showing Symptoms of Financial Crisis: Report

This article suggests China may be headed for a financial crisis similar to the one experienced by the United States in 2007.  The article notes that China is currently experiencing similar symptoms to the ones the U.S. observed prior to the crisis as the country has been experiencing skyrocketing property prices, slowing growth and a large increase in leverage.  The article notes that property prices have swelled some 113% from 2004 to 2012, yet China's rate of growth in 2012, 7.8%, was its slowest in 13 years.  Also, leverage, as measured by domestic credit per gross domestic product, has increased 34% since 2007.  The more highly the country leverages itself, the more painful a deleveraging period could be.  Do you guys believe China is in for difficult times ahead?


http://www.cnbc.com/id/100562024

Europe financial sector is fragile, says IMF

The IMF feels like Europe has to support its banks more and try to create a banking union, which would protect the EU from future shocks. The IMF assessed the European banking and insurance sector and could see that a lot has been done in response to financial crisis, however a lot more was still needed, because the EU is still vulnerable since the growth could be lower than expected or the market could lose its confidence. The Eurozone is still highly affected by the financial crisis, its GDP is still not where it used to be, banks still have high debts and government are not able to create stability. However many measures have been taking in order to reestablish confidents European assets.  For example banks have been trying to raise new capital and the EU a single Eurozone regulator was created (controlled by the European Central Bank). But at the moment the banking sector is restricted and its bad debts negatively affect Europe’s economy.

 http://money.cnn.com/2013/03/15/news/economy/europe-banks-imf/index.html?iid=SF_E_Lead

Pound Sterling Sees a 3-Year Low

Following a 1.5% contraction in the United Kingdom's manufacturing sector in January, the pound sterling has fallen to $1.48. This is the lowest it has been since 2010. The slump has mainly been credited to a reduction in the production of pharmaceuticals and building materials, as well as North Sea oil and gas investments. Coupled with a contraction in growth, exports, and in national income, this has led to fears of a triple-dip recession– a common concern from the last two years. The hope is that the chancellor will implement varied and strong policies to boost growth post a budget debate, but the economy still faces many adversities. But given that the US, Japan, and Germany are slowly pulling out of the recession, and are supplemented by the growth of demand for UK goods in countries like Brazil, China, and India, there is some hope for a recovery.

http://www.guardian.co.uk/business/2013/mar/12/recession-manufacturing-slump

Booming Business of Border Control

This article talks about the growth in the homeland security market due to innovative technologies. This growth continues despite the sequester cuts that included the Department of Homeland Security which dominates 60 percent of the 31 billion dollar market. Some of the things that the technologies are doing are quite fascinating, but more importantly keeping those who work border control safe. However, because of the heavier reliance on technologies, it is quite directly removing jobs from the market. While the value of keeping hard-working individuals out of harm's way might exceed the utility for jobs, this is a prime example Marx's demise of capitalism. For those who may lose frontline jobs in this market due to being replaced by technology, where are they to seek future employment? We see similar similar trends in other industries as well with class sizes growing in education with the MOOCs and technological industrialization of manufacturing. These innovations give rise to new markets all the time, but what about the labor force that is not educated enough to pivot into these markets?

http://www.thefiscaltimes.com/Articles/2013/03/15/The-Booming-Business-of-High-Tech-Border-Security.aspx#page1

African Banking Profits A Distant Reality

Banks across Africa are finding it hard to produce significant profit despite the coutnry's largely untapped market. This article from the economist tells us that access to a financial institution varies greatly by country, and even intra-country access to banks is highly variable. Banks need to continue to build bank branches, which are very  costly to do. Until this need is met, many Africans will have relatively little access to a bank account, and banks will also not see profits, a lose- lose situation in the short term.

GOP Senator, in Reversal, Backs Gay Marriage

http://online.wsj.com/article/SB10001424127887324532004578361971252212296.html?mod=googlenews_wsj

Yesterday, Ohio Senator Rob Portman became the first among current Republican senators to support same-sex marriage. Portman disclosed in an opinion article he wrote in the Columbus dispatch that he has reversed his position on same-sex marriage, “I have come to believe that if two people are prepared to make a lifetime commitment to love and care for each other in good times and in bad, the government shouldn't deny them the opportunity to get married.” Portman said he changed his mind after his son Will, now 21 years old, told him two years ago he was gay. His announcement comes at an interesting time, when acceptance of same-sex marriage is growing incredibly quickly. Do any of you think this could be an opportunity for the Republican Party to move more toward the middle on same-sex marriage? 

British Learning From Sweden

Middle-Income Claptrap

View the article here.

The middle-income trap is the idea that a middle-income country could end up stuck between poor countries with lower wages and rich countries with better technologies, leaving them to compete with both countries above and below them. Adding to this, poor countries have the benefit of being able to move workers from surplus-labor industries into more productive ones. In fact, the Lewis two-sector model can help to explain why this trap may be a very real thing. As workers move from unproductive sectors into more productive ones, such as from agriculture to industry, a country experiences large growth. However, once labor is being used efficiently a country must instead rely on improving productivity within their factories.

The author of this article argues that this may not be the case. He cites a study done by the Royal Bank of Scotland which found that movement between agriculture and industry and service sectors contributed only 1.4 percentage points of China's annual growth between 1995 and 2012. Furthermore, countries can remain competitive at all wage levels since wages and productivity exist along a continuum. Finally, growth models are continuous, and while the Lewis two-sector model explains a large part of growth, it is not exclusive. Factories are constantly improving their productivity while their workforce arrives. The author concludes by saying there are numerous traps that countries of any income level can fall in to, and that there is no reason to single out the middle levels.

Brazil Expands Mines to Drive Future, but Cost Is a Treasured Link to Its Past

As part of the Brazilian economy's attempt to move forwards its slow-moving growth, one of the large mining companies plans to extend its work in the Amazon. The company claims that this expansion would create 30,000 for rural workers in an area where jobs are badly needed. However, the expansion would involve the Carajás caves, an important archeological site. Archeologists have been studying the site since the 1980s and have found signs of life from 8,000 years ago. With several important archeological finds in Brazil in the past decades (some complicating the upcoming Río olympics), there has been increasing focus on the country's ancient history. This mining company has offered to preserve several of the cave areas, but plans to mine the majority of them even while admitting their archeological importance and hiring several archeologists to investigate the site. The government has become involved because the company was once nationalized and the government now holds a large part of its shares. The issue is, therefore, how to find a ground between development and preservation.

http://www.nytimes.com/2012/12/16/world/americas/in-brazil-caves-would-be-lost-in-mining-project.html?pagewanted=1&ref=americas

Workweek Tying Longest Since WWII Spurs Hiring at U.S. Factories

Extremely long factory work weeks seen recently caused the creation of 52,000 new jobs in manufacturing.  Instead of paying so many workers time and a half, it has made more sense to hire additional workers.  Right now, we are seeing the strongest U.S. auto industry since 2007.  New home sales have also jumped to their highest level since the summer of 2008.  In February, production workers averaged 41.9 hours a week, with the record being 45.4 hours a week in the winter of 1944.  This necessity for new workers was a major factor in bringing the Unemployment Rate to the four-year low of 7.7%.  If demand stays steady, this increase in demand for workers may continue as they are forced to hire for future needs.  Along with additional job openings, the Labor Department also reported that employers in January fired the fewest workers since tracking of this data began twelve years ago.  Also as a result of higher demand, auto suppliers are also seeing a need for more employees.
This article implies that consumer confidence is on the rise and that the unemployment rate will continue to fall.  However, while Ohio's unemployment rate is below the national average, it saw an increase in January.

http://www.bloomberg.com/news/2013-03-13/workweek-tying-longest-since-wwii-spurs-hiring-at-u-s-factories.html

Should the US continue to make huge foreign aid payments while domestic programs face drastic budget cutbacks?

http://www.foxnews.com/us/2013/03/06/should-us-make-huge-foreign-aid-payments/

The Obama administration gave $250 million to Egypt, and has received criticism for this because of the cutbacks in other parts of the budget.  One cutback that especially received criticism was the release of "low-priority" illegal immigrants from jail.  However, Secretary of State John Kerry described Egypt as an extreme need.  Should the United States drastically cut foreign aid because of the cuts in our budget?  And if foreign aid is reduced, what is the most important criteria to determine what countries receive aid?  

America's fastest growing job pays poorly

http://money.cnn.com/2013/03/11/news/economy/fastest-growing-job/index.html?iid=H_E_News

Home health care aides are the fasting growing job in America due to the aging population of the Baby Boomers.  About ever eight seconds a Baby Boomer turns 65.  It is predicted that this job will grow 70% between 2010 and 2020.  However, the average hourly wage for health care aides is only $9.70, and they are exempt from federal minimum wage and overtime laws.  Even though some states have passed protections for these workers, a quarter of home health aides make less than federal minimum wage.  Most of these workers are women and minorities, and then majority are not very educated.  These factors make it harder for them to have bargaining power against companies.  However, an increase in wages means that there is a higher cost for the elderly who need care.  

Professor Perks

Faculty perks are of huge importance to distinguished alumni at the top universities in the United States.  Although college costs keep increasing and students keep applying for more loans, universities are offering fabulous incentives, perks, and benefits to faculty. This article outlines the huge pay out that many faculty are getting when stepping down from a top position. For example, James Madara - the medical dean and hospital chief at the University of Chicago - received $2.5 million in severance when he stepped down in 2009. Unlike students, Harvard's faculty can apply for no-interest educational loans. The universities are pointing to getting and retaining the top professors for these special loans and off the charts perks and pay outs. What are your thoughts on professors getting these incentives, while us (students) are paying a fortune for an education?

Link: http://www.bloomberg.com/news/2013-03-12/universities-pile-on-faculty-perks-as-student-costs-grow.html

Public to Private

Mary Schapiro, the recently retired head of the SEC, has been nominated to GE's board of directors. If voted in, Schapiro will make a very nice buck. All board members make around $250,000. As chairwoman of the SEC, Schapiro was paid around $165,000. Schapiro has experience on boards, she served on the board for Kraft Foods and Duke Energy prior to joining the SEC.

Link: http://dealbook.nytimes.com/2013/03/11/mary-schapiro-is-nominated-to-g-e-board/

Italy is facing more than one problem

Italy is in limbo. Currently they have no active government and the Vatican is in a search for a new Pope. This article outlines the frustrations, emotions, and challenges Italian citizens are feeling due to this unique situation. Interestingly, the article points out that since 1948, Italy has had 58 governments. As we have learned in class, Italy is in the middle of a deep recession and the Vatican is fighting a sexual abuse scandal. This Tuesday will be the when the Cardinals meet and start discussing the next Pope. Unfortunately, the EU and Italian citizens will be in a state of nervousness, frustration, and, for some, concern until the next election. The election is VITAL for Italian citizens, Italian companies, and the entire EU.

Link: http://www.nytimes.com/2013/03/09/world/europe/italy-uneasy-over-vacuum-in-vatican-and-government.html?_r=0

Chavez's death could hit Florida real estate

http://money.cnn.com/2013/03/07/smallbusiness/chavez-real-estate/index.html?iid=SF_SB_Lead

The recent death of Hugo Chavez will have affects that extend much farther than the borders of Venezuela. When the housing market crashed back in 2007, there were many expensive and high-end condos and homes left vacant in Florida. Many of the rich Venezuelans looking to escape Hugo Chavez's socialist economy went and bought up many of the vacant properties. With his recent death many of the people known for buying up properties will be sitting idle waiting to make decisions on whether to make purchases or not in Florida or back in Venezuela.  

The Iran-North Korea Axis of Proliferation

Article HERE

This Forbes article discusses the consequences of economic collaboration between Iran and North Korea, two states the United States considers "rogue" and highly dangerous. The two states have been doing business together for quite some time in an effort to skirt crippling sanctions placed on them by the United Nations and recently signed an agreement to kick off scientific and technological collaboration as well.

Many (especially in the United States) are extremely concerned about this development - it is suspected that the nations are using the agreement as a front for exchanging information regarding the development of nuclear weapons. Deeply impoverished North Korea has already demonstrated willingness to sell sensitive information to the highest bidder, and Iran (according to the article) is flush with oil money that it is eager to put to good use pursuing nuclear technology.

Perhaps it is time to begin intense investigations designed to freeze illicit North Korean assets worldwide to cripple the regime.

Workers don't share in companies' productivity gains

http://money.cnn.com/2013/03/07/news/economy/compensation-productivity/index.html?iid=SF_E_River

The gap between productivity and hourly compensation for workers is the lowest it has been since WWII, which has been one of the major dividers in income inequality.  Productivity has grown 80.4% between 1973 and 2001, while there has only been a 10.7% growth in median hourly compensation.  The decline in union power and the national deregulation has led to this income gap.  Additionally, because unemployment is around 8%, workers feel lucky to have a job and do not want to ask for a raise.  However, hourly compensation does not include worker benefits and some believe that as the economy recovers this gap will decrease.  I think this article relates to what we talked about in class with the shareholder and stakeholder interests.  

Hong Kong clamps down on quirky property buys

http://money.cnn.com/2013/03/07/news/economy/hong-kong-property/index.html?iid=SF_E_River

It's interesting to learn about the one of the oddest trends in the real estate market in Hong Kong. People there are paying hundreds of thousands dollars for a parking space or a roof. As weird as it sounds, almost every piece of privately-owned concrete is up for grabs in Hong Kong as the city's overheated property market continues to swell, driven by low interest rates, limited supply and waves of cash from mainland China. This somewhat bizarre trend was apparently started when the government tried to cool the market in October which may also have unnerved some investors and lead them into less regulated alternative property investments like parking spaces and roof decks. If you have been to Hong Kong, you know that it is an extremely dense region. There is very little buildable land and because of that, new construction is carefully controlled. The population is growing rapidly, people are well educated and they have a lot of disposable income. These are the perfect ingredients for a "frothy" real estate market.

China pledges to tackle pollution crisis

http://money.cnn.com/2013/03/05/news/economy/china-environment-pollution/index.html?iid=SF_E_River

The article mentions the recent annual meeting of the Communist Party-dominated national congress in China, in which the Chinese Premier Wen Jiabao pledged to control air pollution and make water supplies safer in China. China has been in a period of rapid growth and industrialization, but obviously with rapid growth comes the problem of growing pollution. As a matter of fact, China burns 3.8 billion tons of coal per year which is nearly as much as the rest of the world combined. And the pollution has only been increasing while the pollution and dust have been known to settle as far as California. Some measures that they may implement to reduce pollution are alternative energy sources and carbon taxes. The only question now is if the talk at the congress will be translated into action.

The wealthy haven't recovered from the Great Recession (but they're doing way better than you)

http://money.cnn.com/2013/02/19/news/economy/top-income/index.html?iid=SF_E_Highlight

According to a recent study, the annual earnings of America's economic elite remain way below their 2007 peak. The top 1% of America's earners took home an average of $1.05 million in 2011, down nearly 30% from the $1.48 million they averaged four years earlier, before the Great Recession took hold. However, as the tittle suggests, they are still doing way better than the majority of Americans. Those in America's bottom 99% had an average income of $42,826 in 2011. That's essentially flat compared to two years ago -- meaning that while America's richest enjoyed a rebound, others have not. Their average income is the lowest it has been since 1995, compared to 2003 for the top 1%.

George W. Bush: The Art World's Rising Star

STORY HERE

I just needed to share this story with you guys. Apparently former president George W. Bush is an up and coming painter who mostly enjoys painting dogs and, more recently, landscapes. He has also painted self portraits of himself in the bathtub - you can find the images on Google.

http://www.nytimes.com/2013/03/09/business/economy/us-added-236000-jobs-in-february.html?_r=0

The sequester is coming in March 1st. Though not being reflected on February's number, the public sector already lost 10,000 jobs this month and jobless rate in the sector is about the increase as predicted. Michelle Meyer, senior United States economist at Bank of America Merrill Lynch, says "we’re going to see federal job cuts and the spring is going to be a soft patch for the labor market." Needless to say, America will take a big hit this March and April when the Congressional impasse, let's see what is coming but right now, it's not too doomed while looking at job improvement as the nationwide unemployment rate is expected to reduce to 7% at the end of this year.

Click here to read more...

Chavez's death won't spur new Venezuela oil drilling

Chavez died but it is not certain that his death may bring Venezuela back to its once status of the largest oil producer as well as its credibility as a "democratic" country. The article recommends Venezuela to take immediate actions in restoring their credibility in the eyes of investors. It starts with privatizing the oil industry again by inviting the once ousted ConocoPhilips. Despite that attempt, it may take much longer time when the political apparatus Chavez set up seems entrenched. In the long term, government-run petroleum company PDVSA should be broken down and no longer serve as the piggy bank for the government to spend on experiment as it used to be under Chavez regime. It's essential to have room for foreign investors to come back and better use the resources.

Click here to read more...

Was Chavez bad for Venezuela?

Was Chavez bad for Venezuela?

In her article Megan McArdle writes that even though Hugo Chavez was a strongman he had very profound anti-democratic policies. She contends that his economic policies were very detrimental to Venezuelan’s future.

Even though Chavez's government made considerable developments in the education sector but the poverty rates have fallen.  One of the worst things he did to the Venezuelan economy.

This graph is from the The Economist.  Even though the economy doesn’t look too bad here but the growth is not great as it should be considering Venezuela is an oil producing company.

This article suggests that they're pumping less oil than they used to, hence Venezuela's oil output has fallen by almost a third since Chavez took power.  That's why Venezuelan economic growth is pretty underwhelming.  

This sums up that Chavez was not very good for Venezuela' economy. 

Article: http://www.thedailybeast.com/articles/2013/03/07/why-hugo-chavez-was-bad-for-venezuela.html

French Unemployment Rate Puts Pressure on a Labor-Market Reform

http://www.washingtonpost.com/business/french-unemployment-climbs-to-106-percent-in-q4/2013/03/07/5d09aecc-86f4-11e2-a80b-3edc779b676f_story.html

In the last quarter of last year, France's unemployment rate rose to 10.6%, rising 0.3% from the third quarter of last year. This increase in unemployment along with a decrease in GDP in three of the last 4 quarters is putting pressure on Hollande to implement a labor-market reform. The strong rules that make it difficult to fire workers and employers reluctant to higher will be loosened with this reformation. It will also give companies more flexibility for setting it's working hours and salaries. These new policies will definitely help with France's increasing unemployment rate, but I feel that more needs to be done to combat their issues, as they are moving into a recession. Hollande appears to be responsive to the needs of his nation and it is possible that he might implement further reformations if these do not appear to be adequate.

In a First, Baby 'Cured' of HIV

http://news.discovery.com/human/health/baby-cured-aids-130204.htm
http://www.economist.com/blogs/babbage/2013/03/aids-research

On March 3rd, there was a case of a baby that was "functionally cured" of HIV. Functionally cured means that the HIV virus is not totally eradicated, but its presence is reduced to a level such that the body can control it without using drugs. Although researchers and doctors are unsure about how the cure came about, they speculate that it is due to the intensive dosage of the drugs given at birth and the timing of the drugs (given starting less than 30 hours after her birth). With this new "breakthrough" or discovery, there will definitely be a large investments and funding for the research by many more institutions.

Warren Buffett says federal budget cuts aren't too bad for economy

http://www.latimes.com/business/money/la-fi-mo-warren-buffett-sequester-budget-cuts-economy-20130304,0,3145208.story

Warren Buffet puts his two cents in about how Congress has dealt with the deficit situation. Although borrowing may be cheap right now, I do believe that there's some value in making sure the deficit does not get too out of hand. I remember an article published by the European Union that found correlation between more than 1 to 1 debt to GDP ratio and negative effects on the economy. I do not believe that it's healthy for politicians to already come out and play the blame game and predict the economy to take a downturn from this.
However, even though the method has been rough, I am optimistic that the deficit is being taken care of and that it's been a two way street of cuts and increase in revenue. Buffet seems to think that the cuts will not effect the U.S. economy very negatively and he is also in agreement that the deficit should be taken care of.
Hopefully, Congress can start working in a more efficient and sensible manner. 

Euro and its benefits for Germany

This article outlines the reason Germany will bailout other EU countries. Germany has done fairly well for themselves during the crisis; they have been able to keep their economic numbers a lot better than other countries - Spain, Greece, Portugal.

The article presents many examples of how the rewards for saving the Euro outweigh the costs (negatives). In most possible scenarios, Germany will do better if it loans money out to struggling EU members; Germany could even turn a profit on certain loans.

Link: http://www.nytimes.com/2012/06/27/business/economy/why-germany-will-pay-up-to-save-the-euro.html?pagewanted=all

Mexican Union Leader arrested on embezzlement accusations

The head of the powerful teachers union, Elba Esther Gordillo, has been arrested for partaking in a scam that brought her around 2 billion pesos. The arrest comes after newly elected President, Enrique Pena Nieto, signed a major educational reform law. Elba is known for high fashion and a flashy lifestyle, with many questioning how she maintained such a lavish reputation on a public servants salary. That question has been answered. The true question now is whether or not she will be found guilty, as Mexico has had some trouble sending wealthy, well-known criminals to jail.

Link: http://www.economist.com/blogs/americasview/2013/02/mexico%E2%80%99s-teachers%E2%80%99-union

Youtube Clip of Rebels in Syria (taking over)

Here is an interesting link videotaping the rebels in Syria taking over a major city. The conquering of Raqqa has changed the dynamics of the civil war. This clip is from over the weekend. The statue coming down is Hafez al-Assad - the former president of Syria.

http://www.youtube.com/watch?feature=player_embedded&v=6hFwEmgylJ4

Why Five Days in the Office is Too Many

This article is one woman's reflection of the benefits and disadvantages to a five day week of working in an office setting. The writer herself left the corporate world at the age of 23 to start her own software company. She found the idea of sitting in a cubicle everyday "maddeningly inefficient" and knew that flexibility made her a better, more productive worker. She reports that as her company grew, however, she began feeling the need to put her employees in a typical office setting to be completely sure that they were being productive, and so that she could more easily monitor and measure their productivity. She also noticed that the social interactions between workers was beneficial to the bouncing of ideas between employees. Yahoo argued that point when they made the switch to all employees required to work in the office, saying that "some of the best decisions and insights come from hallway or cafeteria discussions, meeting new people, and impromptu team meetings." But the author also sees the benefits of giving the brain "unstructured time to think," and the value of ideas grown from that.

The writer mentions that she believes the classic five day work week is outdated and not needed as much anymore, because people have the technological resources to work at home and still stay in communication. She concludes her opinion piece by saying that the office should be a gathering space to communicate ideas, but that employees should be given the respect and the responsibility to work on their own schedules and complete their work wherever they choose, as long as they still make deadlines. Because of these reasons, she is in favor of a three day work week.

I see the benefits of this, especially for working parents, who still want to work, but may not be able to under the confines of a typical 9-5, five days a week work schedule. And there have been many studies that show that some people think more clearly at later hours of the night, while other's brains are most active first thing in the morning. Being able to choose when to be productive would perhaps increase productivity among employees. But I also understand the opposing argument that some people work better under a structured schedule, that the work place is a good environment for idea-sharing, and that it is the best way for an employer to oversee the work that's being done. What do you think? As an employer, what would you prefer? How about as an employee?

http://www.nytimes.com/2013/03/03/jobs/in-defense-of-working-mostly-from-home.html?ref=business&_r=0

Putting a cap on banker bonuses

http://www.economist.com/blogs/schumpeter/2013/02/europes-decision-bankers-pay

European bankers now have a cap on the bonuses they can receive after their initial salaries. Even though negotiations with bankers is not an ideal thing for people to do it is a much needed checks and balances system that drives the economy towards more balance. By placing caps on these people the banking system can try and reload and restructure without banks losing millions in dollars of capital to the CEO's

Urban stability: Treating the symptoms

http://www.economist.com/news/china/21572814-name-social-order-government-turns-blind-eye-black-jails-treating-symptoms

The central government of Beijing has been and is turning a blind eye towards "black jails". These black jails are local jails that arrest petitioners who try to protest to the central government of Beijing about problems in their local areas. These black jails or detention centers are ran illegally by the local governments. Petitioners would be dragged against their will into jail with no one to help them; a case where the police are the criminals themselves. There are optimists who seen that the Beijing government may begin to try to crackdown on these black jails because in February 5th, the government sentenced a group of people for running black jails. However, the author believes that should there be progress on eliminate black jails, it would come at a slow pace because the central government also has some vested interest in the existence of these illegal detention centers. The author also suggests that the main problem with the central government is its obsession with the concept of weiwen or stability maintenance. I agree with the author that should the Beijing government want to crack down on the black jails, it will have to sacrifice some stability, but it will be better for Beijing in the long run.

For Some Landlords, Real Money in the Homeless

This is an interesting article from the New York Times discussing the ever growing demand to shelter the homeless. The city/state faces rising cost of homeless shelters and although they are efficient they are seeing a better alternative which is provided by the private sector. Some landlords are offering tenants up to $25,000 to move out in order to move in homeless people that the state will pay multiple times the value of rent to house them. I see this is as a great opportunity for the private sector but at the same time it seems like a great cost to the government.

http://www.nytimes.com/2013/02/09/nyregion/for-some-landlords-real-money-in-the-homeless.html