During the first ten days of October 2008, the Dow Jones dropped 2,399.47 points, losing 22.11% of its value and trillions of investor equity. The Federal Government pushed a $700 billion bail-out through Congress to rescue the beleaguered financial institutions. The collapse of the financial system in the fall of 2008 was likened to an earthquake. In reality, what happened was more like a shift of tectonic plates.

History will record that the tectonic plates of our financial world began to drift apart in the fall of 2008. The scale of this change may be most evident in housing.

PART TWO – THE HOME BUILDERS  read more »

Nobel Prize-winning economist Paul Krugman was quoted widely for saying that the official recession will end this summer. Before you get overly excited, keep in mind that the recession he’s calling the end of started officially in December 2007. Now ask yourself this: when did you notice that the economy was in recession? Six months after it started? One year?  read more »

LONDON - The thrashing of Britain's New Labour Party – which came in a weak third in local and European Parliament elections this week – may seem a minor event compared to Barack Obama's triumphal overseas tour. Yet in many ways the humiliation of New Labour should send some potential warning shots across the bow of the good ship Obama.  read more »

Could oil price manipulation have created the rerun of the Great Depression that we are currently enduring?

Think about it. The doubling of gas prices had a profound effect on disposable income and the affordability of housing, whose subsequent downturn set the stage for economic collapse.

We now know that Wall Street speculation drove oil from $69 a barrel to nearly $150. But this article purports to explain why.  read more »

Long before Chicago sold off its assets, made plastic cows parade and outlawed goose guts, there was Michael Cassius McDonald, Big Mike. Where the Chicago Machine now grinds the citizen with Progressive idiocies, Mike McDonald and other Machine Mavericks like the Lords of the Levee appeared to actually help people. Vice and Government have gone hand-in-hand since Solon tried to reason with Croesus – Hesiod tells us that political corruption sparks political thought. The life of Michael Cassius McDonald was active and thought-provoking.  read more »

“Paint the world white to fight global warming” was the astonishing headline from The Times of London. The paper was referring to a presentation made by United States Secretary of Energy, Dr. Stephen Chu at the St. James Palace Nobel Laureate Symposium last week. Chu was reported as saying that that this approach could have a vast impact.  read more »

Most Americans living outside the Chicago area identify the city with Oprah, Obama, or Michael Jordan. When the subject of who really runs Chicago comes up, most people would say Mayor Daley. Chicago's lack of term limits and persistent political machine have kept Mayor Daley in office for over 20 years.

Those who know Chicago politics know there's one man who's more powerful than Mayor Daley, Alderman Ed Burke. Mayor Daley may be the identifiable public face of Chicago's political system and act as a lightning rod for criticism, but the lower profile Alderman Burke wields the real power.  read more »

“Man is the only kind of varmint who sets his own trap, baits it, then steps in it.” — John Steinbeck

Though probably not intended as a political commentary, Steinbeck’s utterance perfectly describes the current California budget crisis. And, given the revenue and service delivery relationship between cities and the state, traps can be set and baited in Sacramento, leaving mayors, city councils and city managers to step in them.  read more »

Almost ten-years ago, the Milken Institute first released America’s High-Tech Economy which cataloged technology’s central role in propelling economic growth in high-wage jobs and value-added economic activity. Shortly thereafter, the dot-com and high-tech bubbles popped, leading many to conclude that the era of tech-driven economic development was over.  read more »

A decade ago, the path to a successful future seemed sure. Secure a foothold in the emerging information economy, and your city or region was destined to boom.

That belief, as it turned out, was misguided.

In the decade between 1997 and 2007, the information sector--which includes jobs in fields from media, publishing and broadcasting to computer programming, data processing, telecommunications and Internet publishing--has barely created a single new net job, while some 16,000,000 were created in other fields.  read more »