Comments on: Blighty: A Nation Sized Experiment in Regulatory Arbitrage

By: gregor.us

gregor.us — Sun, 08 Mar 2009 05:11:16 +0000

I am perhaps being chauvanistic in a back-door way, by responding to your original tweet about riots in the UK, and, using OECD riots as the example that would shock or get attention. I reluctantly accept that riots and unrest in London and NY are the gold-standards for political crisis. So, yes, since riots in developing countries are more “expected” I am ignoring them.

By: Ben Atlas

Ben Atlas — Sun, 08 Mar 2009 04:42:16 +0000

To rely to your twit: I guess you don't count on Eastern Europe to start the riots, after all riots in Eastern Europe is the way of life…

By: gregor.us

gregor.us — Sun, 08 Mar 2009 01:11:16 +0000

By: Ben Atlas

Ben Atlas — Sun, 08 Mar 2009 00:42:16 +0000

To rely to your twit: I guess you don't count on Eastern Europe to start the riots, after all riots in Eastern Europe is the way of life…

By: faustroll

faustroll — Thu, 05 Mar 2009 17:24:48 +0000

not in the slightest over the top. If there is something good about this crisis and there always is something good about any crisis, it is the return of politics to discussions about economics. A return to politcal economics might be the bedrock from which new trade and innovation and even wealth will return. And discussions and coffee houses and blogs are exactly the places where the mix happens.

I appreciate your thinking and your writing both and I am always amenable to persuasion. I especially enjoy well thought out arguments with which I initially disagree from vantages I have not myself arrived at.

I too find the bashing of those immigrants who have taken over the labors in our countries to be not only distasteful and unfair but disingenuous scapegoating. We have a kind of unlabor unrest.

cheers

By: gregor.us

gregor.us — Thu, 05 Mar 2009 12:19:50 +0000

Cheers. As I've been talking about the potential for widespread labor action both on the blog and in my newsletter, at times it has seemed a bit over the top to be suggesting the UK is headed a broader set of troubles. Now comes the WSJ to cover the story, once it's more clear.

Terribly ironic (or perhaps not) the latter part of the credit bubble unfolds under an Exchequer turned PM, and bursts while he's at the helm.

Labor action, riots have a storied tradition in Britain. They're pretty good at it. Of course, this eventually devolves into scapegoating. This time around, I'd prefer it if the British blamed we Americans, and left their hard working immigrants alone.

G

By: faustroll

faustroll — Thu, 05 Mar 2009 10:27:07 +0000

Gregor,

Thanks for posting another thoughtful foray into political economics: well crafted, well framed, and provocative of thought as always.

Interesting to note that Bagehot's England, pioneer and model of the bond and credit markets, has again found itself on the backside of yet another credit bubble, and of course this time Britain incorporated some of the innovations from their friends across the widening sea. The expansion of personal debt and the housing bubble are of a piece.

Ten years ago in a book called "The Hungry Spirit" , Charles Handy, bless him, was marveling at the post-industrial growth in Britain and was waxing philosophical as only business "thinkers" can about how there is more to life than just "getting and spending" and laying waste to our powers in the effort to keep a roof over our heads and a chicken in the pot. I remember idly thinking at the time that I ought to pen a retort and call it "The Hungry Checkbook" or "The Hungry Liabilities." While Mr. Handy was thinking such lofty thoughts about how his fellows might come to the via contemplitiva by riding the wave of a credit bubble into endless otium, the liabilities were growing and the obligation, the debt was coming due.

The need to pen such a retort seems somewhat obviated now. The ability to engage in "getting and spending" can itself seem a luxury in a contraction. . Welcome to Depression 2.0