Outline of session; November 18, 2008
The Global Crisis, class #3
Relevant links, including background material and tracking of all relevant developments available through http://BaselineScenario.com. Details of session after the jump –
Our guest for the first half of class is Jeff Shames, who teaches finance at MIT Sloan.
Update on the crisis worldwide
- Latest market views on U.S. housing
- Where are major global banks heading and why (e.g., Citi)?
- Current pressures on insurance, Russia, Greece, etc; what are the other vulnerabilities?
Global finance dimensions: conversation (by phone) with Peter Boone, of Effective Intervention and Centre for Economic Performance, London School of Economics
The case for and against bailing out General Motors
- Could GM operate in Chapter 11?
- What would be the broader consequences of reorganization through bankruptcy in the auto industry?
- What is likely to happen? Is it more about politics or economics?
Assessment of the G20 meeting in Washington, November 14-15th
- Any real progress on coordinated fiscal stimulus or other short-term macro policies?
- More funding for the IMF from Japan. Anything else in the works?
- Who were the big winners?
- i. Mr. Sarkozy? Is the coming wave of regulations procyclical?
- ii. Mr. Brown? Who will provide the global early warning system?
- iii. Emerging Markets? Which ones and why exactly?
- iv. Mr. Obama? In what sense?
What would you recommend as a broad economic strategy for Mr. Obama’s administration, to deal with the crisis and manage a strong recovery? How long will it take?
The latest round of debate on fiscal stimulus in the United States (see also my testimony to the Senate Budget Committee, tomorrow). What would you say?
No class on Tuesday, November 25. Next class is Tuesday, December 2nd, when it will start at 4:30pm and run until 7pm.
Update: Flash recording of class.