Loose Cannons

April 19, 2008
Issue 

Adverse financial conditions

"The financial market crisis that erupted in August 2007 has developed into the largest financial shock since the Great Depression... Adverse financial conditions are likely to have a continuing negative impact on activity in the United States... The United States remains plagued by profound errors in risk management." — From the International Monetary Fund's latest World Economic Outlook survey, released April 9.

Another fantastic year

"Millions of people are facing foreclosure on their homes, banks are going belly up, tens of thousands are being put out of work, America is on the brink of recession — it's another fantastic year to make money as a hedge fund manager. The top managers pocketed more personal wealth last year than at probably any time in history. Top of the league table came John Paulson, whose pay packet in 2007 reached $3.7bn... Between them, the top 50 [hedge fund] managers ... made $29bn last year." — From the April 17 British Guardian.

Capitalism at work

"Inequality of wealth is more extreme in America today than for decades. According to Jared Bernstein, of the Economic Policy Institute in Washington, the gulf is greater than at any time since 1928, when a similar proportion of US national income — 23% — went to the top 1% of earners." — From the April 16 British Guardian.

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