Chapter 11 for Detroit’s automakers

Best sentence I’ve read today:

If Chapter 11 cannot save GM, then nothing can.

This is from the recent VoxEU opinion by Joshua Rauh and Luigi Zingales, proposing a bankruptcy to save General Motors. Inter alia, the ideas in Rauh & Zingales might address Richard Posner’s worries concerning Chapter 7 versus Chapter 11 in the US Bankruptcy Code; on the other hand, naturally, Gary Becker does not need further convincing that bankruptcy is the only viable alternative for GM, Ford and Chrysler alike→ Read more

Econlinks for 27-12-’07

  • How to avoid recession in USA: Greg Mankiw’s answer. Gary Becker and Richard Posner advocate a similar perspective (the argument is centered, of course, on the subprime housing mess). Former Fed boss Greenspan already said that one should do absolutely nothing and wait for the bubble to break on its own, just as the people above (e.g.
  → Read more

Probability of being a serial killer: the case of Lucia de Berk

Here’s a post on an extremely interesting story at the intersection of law, statistics and professional ethics in several disciplines. Inter alia, the issue has been covered in some of the best scientific journals. See for instance a). a report in the Science edition of the 16th of November (you need a subscription to access the PDF); b).  → Read more

Politica fara tromf si… parerile fara suport

Tare ma tem ca Sorin Matei iarasi se leaga de lucruri unde nu are in mod necesar toate competentele. Articolul acesta din Adevarul (cu preview si pe pagini.com) are si parti bune (da, un eventual Basescu reloaded ar trebui, in sfarsit, sa-si in serios rolul de Presedinte si sa inceteze sa fie un bufon…desi incep sa ma indoiesc ca are abilitatea necesara si deci ca ar fi doar o chestiune de vointa), chit ca ar putea prezenta o analiza mai obiectiva si pasaje care il plaseaza in seria articolelor deloc impartiale ar putea fi eliminate… Dar, sa ajungem si la marea dilema: sa fie desfiintata Curtea Constitutionala→ Read more