Posts Tagged credit markets
OPEC and the Folly of Market Intervention
The folly of market intervention by governments and monopolies can best be illustrated by that of OPEC. Although recently proposed cuts in production by OPEC members and non-OPEC producers like Russia will certainly raise the price of oil…at least temporarily…they have side effects that are contrary to the interests of those same producers.
No Auto Bailouts in Emerging Markets
It is no news that the Global Economic Crisis has had a huge effect on car sales in both mature and emerging markets. In the United States, three domestic manufacturers-General Motors, Ford and Chrysler- are facing bankruptcy while the United States Senate debates whether to proceed with a “bailout.”
In all economies, frozen credit markets [...]