Perspectives on the global economic meltdown

vsudhir · Post by **vsudhir** » 31 May 2009 08:06

Job fair canceled for fear of crowds

And this in khanland, not PRC.

vsudhir · Post by **vsudhir** » 31 May 2009 08:08

John Snow · Post by **John Snow** » 31 May 2009 08:15

amol ji >> commodity prices will go up because of Fiat money ( and monitization of debt by printing), also dollar will weaken against non EU currencies. because they (EU) are also resorting to monitization but at a slower rate exception being NGB (not so great Britain) Bank of England is in printing spree along with bogus claims by MPs Ministers etc. Britain is class in corruption by itself.

Now over to Johann paging Johann please come in...

vsudhir · Post by **vsudhir** » 31 May 2009 15:26

How the mighty fall..... Harvard next in line?

Harvard has already halted the hiring of junior faculty and announced an early retirement program for tenured professors, and for the first time ever is considering laying off tenured professors.

Link

Laying off tenured professors? AoA...there ij justice in ze world or what?!?!?!?

According to the university’s 2008 financial report, in the next 10 years it must pay various private investors some $11 billion in capital commitments. Where will that money come from if, as seems likely, endowment growth over those years is minimal or nonexistent, and alumni’s own strained budgets limit their generosity?

AoA AoA....

HMC “took the university right to the edge of the abyss,” one alumnus, a financier who is privy to details of the university’s balance sheet, told me. I asked what he meant. “Meaning, you’re out of cash.

“That,” he added, “is the definition of insolvency.”

Er no, actually it’s the definition of illiquidity, but never mind.

A more sober assessment here:

The point is that Harvard has run out of liquid assets, and that’s going to have huge effects on its institutional psyche — and possibly even on the job security of tenured professors. My guess is though that no one with tenure will be laid off involuntarily.

And maybe Harvard’s alumni might start giving a lot more now than they have in the past. After all, until recently, any giving from alumni was dwarfed by the investment gains of the endowment, and so the incentive to add another drop to the bucket was greatly reduced. Now, by contrast, cash from alumni is desperately needed to meet the university’s annual liquidity requirements. It might even feel better, giving money when you know it’s going to actually be spent, rather than giving money simply to augment some gargantuan endowment.

Link

vsudhir · Post by **vsudhir** » 31 May 2009 18:11

Competitiveness: The U.S. and Europe Are Tops

Must be true now and forever. Bizweek is saying so. More seriously,

The global financial crisis seemingly shifted economic power away from hard-hit Western countries such as the U.S. and Britain to cash-rich emerging economies such as India and China. But while the West is limping along today, economic power may shift back when growth resumes. Why? Among the nations of the world, developed countries still enjoy considerable advantages in fundamental economic competitiveness—whether based on the quality of their infrastructure and educational systems or the sophistication of their business laws and bureaucracy.

That's the conclusion of the 2009 World Competitiveness Yearbook, an annual report published by IMD business school in Lausanne, Switzerland. Based on a detailed analysis of economic output, government and business efficiency, skills, and infrastructure, the researchers ranked 57 of the world's economies to determine which are best placed to succeed in the 21st century economic race.

All of which is true mind you. First class Infrastructure, sophistication of laws and business friendly environment etc in the emerged world.

What the emerged conomies lack, though, is demand, growth in demand and sustainability of said demand. So is my humble fumble prelim reading. Maybe I'll be proved wrong. Maybe not. Lezsee. (Parkalam!).

vera_k · Post by **vera_k** » 31 May 2009 21:17

vsudhir wrote:How the mighty fall..... Harvard next in line?

Hope there's a fire sale on Harvard degrees about the time my kids are old enough

.

Singha · Post by **Singha** » 31 May 2009 21:47

or forced to shut a few depts and sell land to donald trump's new luxury 'charles view condo' project

or downgrade all dorms to mk1 desi standard with yindu latrines and lota onree, plus red rice, thin dal and a greasy bhindi curry slop for dinner - no chi chi herb crusted salmon fillet or veal with basil and capers sauce served with a side of organic bread and artisanal spanish cheese and seafood bisque

mnag · Post by **mnag** » 31 May 2009 22:11

Fannie Mae has reported that 70% of home loan modifications to help home loan delinquencies run into trouble as they become delinquent soon again as reported in the following article. All of us in BRF knew it long back, but the decision makers think that they can wish away all the problems by just pumping money

Fannie Program Sees 70% Recidivism
http://www.housingwire.com/2009/05/22/f ... ecidivism/

Excerpts

A program aimed at helping delinquent borrowers become current once more on their mortgages will likely see decreased volumes at mortgage giant Fannie Mae (FNM: 0.73 +1.39%) after the Federal Housing Finance Agency (FHFA) noted a significant majority of participants soon redefaulted after receiving aid.

Fannie first launched the HomeSaver Advance (HSA) program in February ‘08 as a solution for borrowers experiencing temporary hardship. It allows servicers to offer unsecured, personal loans so delinquent borrowers can keep up on payments until the temporary hardship — unemployment, sickness, etc. — passes and borrowers can resume regular payments.

“This loan can offer these borrowers another alternative, and help prevent a temporary setback from becoming a foreclosure,” a Fannie executive in the single-family credit risk management division said in a media statement announcing the program.

But as mortgage performance deteriorated through ‘08, Fannie’s conservator, FHFA, noticed an alarming trend among the mortgages participating in the advance program.

“HSA is showing high redefault rates on the early offerings,” FHFA director James Lockhart noted in a Congressional report this week. “Performance on the February through April offerings shows a redefault [or recidivism] rate of almost 70%, which calls into question the program’s assumptions that borrowers have the capacity to make payments going forward.”

John Snow · Post by **John Snow** » 31 May 2009 23:11

Remember

"BRF where tomorrow comes today, while others await it to dawn"

Was watching Fareed Zakaria,
Niel Furguson (i think of FT) was confirming what BRF had been predicting about US economy et al.

Folks should watch if you can.

RamaY · Post by **RamaY** » 31 May 2009 23:52

John Snow wrote:
First, the shorter-term Treasuries are the most-liquid form of U.S. debt. It's no surprise that China is choosing only these types of Treasuries, since it is currently on a commodities buying-spree – which it is financing with U.S. Treasuries
I had said this about three months ago, also notice how PRC will go huge investments in Africa for the commodities and natural resources which has been happening for a while now and also create markets for its (PRC) products. It may even go back to Soviet era barter deals.

The monkey is putting its hand in the jar. If someone can tighten the neck of the jar a little smaller... the monkey's hand is stuck... one needs an african/australian strategy i guess...

rsingh · Post by **rsingh** » 01 Jun 2009 03:17

Things look ok at first glance, here in Belgium...............if look deeper it is scary. I went to buy Blackberry in upmarket outlet only to find that they do not store anything and one need to book the stuff in advance (one week). To dig deeper I just asked about itouch..........same story. My friend ordered for Volvo in Feb.......................he is still waiting. Guy is hard bargainer........got 20% reduction on quoted price.

vsudhir · Post by **vsudhir** » 01 Jun 2009 03:19

Saudi Billionaire With HSBC Stake Has Accounts Frozen

Al-Sanea, who is chairman of the Khobar-based Saad Group, also manages The International Banking Corp. B.S.C., the Bahrain-based unit of Ahmad Hamad Algosaibi & Brothers Co. that has defaulted on some of its debt, according to an Algosaibi official who spoke on condition of anonymity. Saad Group said al-Sanea does not manage the unit.

vsudhir · Post by **vsudhir** » 01 Jun 2009 04:31

Fed puzzled by yield curve steepening

Well its official now. (Even) The Fed doesn't know what it is doing. We're in for a merry ride indeed.

vsudhir · Post by **vsudhir** » 01 Jun 2009 06:13

I think it was Ramana garu (or was it Acharya san?) who'd first mentioned on BR that sometime in the 70s a deliberate decision was made by the US establishment to rely on financial services (or wizardry) and go easy on traditional blue collar industry.

This chart offers proof:

Says it all, IMHO.

Singha · Post by **Singha** » 01 Jun 2009 06:37

social engineering was done to make people want to keep buying stuff whether they really
needed it. bigger and more was to be desired.

if you look at a american houses garage, basement and attic there are tons of such purchases
that were impulse or me-too buys.

eg. guy goes to his friend auto mechanics place and sees all the tools. so instead of sticking
to his basic tools in a plastic box, goes out a gets a craftsman pro tool set complete with a
huge chest of metal drawers to 'work on his car' (camry) - onree problem being the camry
seldom needs any work except a oil change. to prove his worth, will buy 4 jacks and do the
oil change at home wasting one weekend figuring out how. will buy a ton of chiltons type guides....it never ends.

a simple DVD was never enough. had to be a special boxed director's edition set for 300% of simple price.

vsudhir · Post by **vsudhir** » 01 Jun 2009 06:39

Well, moi is a keen observer of the econ and business education businesses.... so yes, this does seem concerning...

The Sacramento Bee today says that CA is likely to cut an additional 10% from the University of CA system professional schools (they already cut 10%) and possibly will eliminate all support for state university business schools. Some graduate schools in education and other majors already are self-support via the extension programs.

Goodbye blue sky...

vsudhir · Post by **vsudhir** » 01 Jun 2009 07:00

The fall of the Mall (NYT)

vsudhir · Post by **vsudhir** » 01 Jun 2009 07:58

Ab bas yahi baki reh gaya....

Blonde therapy lifts spirits in crisis-hit Latvia

RIGA, Latvia (AFP) — Several hundred blondes marched through the Latvian capital Riga Sunday in a bid cheer up the crisis-hit Baltic nation, suffering the worst recession in the 27-member EU.
Led by an orchestra, the first-ever blond parade featured women dressed in pink and white, some accompanied by lapdogs, in a charity fund-raising event that organisers hope will become an annual event.
"I'm not stupid. I'm beautiful and I'll prove it," blonde participant high school student Ilona Zigure told AFP.
Organisers said they were determined to bring positive energy to their country, expected to see its economy contract by 16 percent this year.
The parade is part of the what they are calling Blonde Weekend, which will also features a blonde golf tournament, a little lady fashion show, an evening ball, and a children's drawing competition.
"It's a great time to spend in the parade and contribute to a charity," said Ieva, one blonde spectator.
"Finally something different, something positive because I'm tired of hearing about the crisis," said another, 70-year old Ausma.

Meanwhile this is the kinda fevered sthinking that passes for reasoned analysis on some unkil blawgs these days...

Pakistan lobs a nuc at India. Many jobs repatriated to the USA.

Singha · Post by **Singha** » 01 Jun 2009 08:40

no, jobs will be moved to the winner pakistan. american managers and workers can then
relocate to swat and bajaur to enjoy the traditional hospitality.

John Snow · Post by **John Snow** » 01 Jun 2009 08:46

vsudhir wrote:Fed puzzled by yield curve steepening

Well its official now. (Even) The Fed doesn't know what it is doing. We're in for a merry ride indeed.

This is what was lead out by Ferguson in Zakaria show.

Meanwhile "OUR MAN FLINT" is in Bejing with a begging bowl, instead of wine glass

U.S. Treasury Chief Arrives in Beijing
Article Date: 17:50 2009/05/31
Article ID: 0041

Beijing, May 31 (QNA) - U.S. Treasury Secretary Timothy Geithner arrived in Beijing Sunday afternoon on a three-day official visit to China, the New China News Agency ( Xinhua) reported . Geither is expected to meet with Hu Jintao, Premier Wen Jiabao and Vice Premier Wang Qishan, as well as deliver a speech at the Peking University. The U.S. Treasury Secretary and Chinese leaders will discuss how to strengthen U.S.-China economic ties to promote stable, balanced and sustained economic growth in the two nations. This is Geithner''s first visit to the country since taking office in January.(QNA) OM

John Snow · Post by **John Snow** » 01 Jun 2009 08:58

oops Singha Saar I have a GMC Jimmy in addition to civic (sense) RX350 and a 2008 TL. But I just finished replacing the complete calipers rotors front and back of this truck, the goodyear quote for that was $ 1700.00 plus tax, i bought tools and parts from Auto zone ( I had 2 jacks as I do oil changes for all my cars) total cost $350.

Chandelier was in the garage (relocation from CT) to hang it the quote was $400.00. I could not rent the scaffolding (logistics) built my own out 8' x 4"x2" stud walls (2 nos) and then covered with 1/2" ply wood on which used my 8feet ladder (step) and finished the job in $130.00.

some times tools are important

"give us the tools we will finish the job" Winston C during WWII

Singha · Post by **Singha** » 01 Jun 2009 09:34

amol.p · Post by **amol.p** » 01 Jun 2009 09:56

US jobless rate may scale highest level in 25 years

WASHINGTON: Unemployment in the US probably surpassed 9% in May for the first time in more than 25 years, underscoring forecasts that the economy
will be slow to pull out of the worst recession in half a century, economists said before a report this week.

The jobless rate climbed to 9.2%, the highest level since September 1983, according to the median estimate in a Bloomberg News survey ahead of the Labor Department’s June 5 report. Other data may show manufacturing and service industries shrank at a slower pace and consumer spending dropped. “The economy is decaying at a slower rate and that is the best you can say,” said Steven Ricchiuto, chief economist at Mizuho Securities USA Inc in New York.

“I can’t tell you we are out of the woods yet.” Economists forecast the jobless rate will head to almost 10% by the end of the year, depriving Americans of the income needed to propel spending and stoke a vigorous recovery . Access to credit will likely also be limited as record defaults and foreclosures make banks reluctant to lend. The unemployment rate is predicted to rise from 8.9% in April.

Payrolls probably fell by 521,000 this month after declining by 539,000 in April, the survey also showed. Job losses peaked at 741,000 in January , the most since 1949. The economy has lost 5.7 million jobs since the recession began in December 2007, the most of any economic slump in the post-World War II era.

http://economictimes.indiatimes.com/Int ... 601966.cms

seems US banks will need to go more one more stress test with jobless rate of above 10% by mid year...!!!!!!!!!!

amol.p · Post by **amol.p** » 01 Jun 2009 11:36

Ireland Set To Go Bust, Claims Economic Historian

http://informationclearinghouse.info/article22746.htm

His chosen prime candidate to go bust is "Ireland, followed by Italy and Belgium, and UK is not too far behind".

"We have the fiscal policy of a world war without a war."

Referring to the clash between inflation and deflation he added: "I don't know who is going to win but we know that while the struggle goes on ordinary people will get trampled. There will be more economic volatility and ordinary people will pay."

He has also warned that in Britain he expects "more riots in major cities this year" because of the economic situation and says the recent "drip feed" of the peccadilloes of British MPs and their expenses is "just the beginning of a crisis of political legitimacy that will be played out over the next 18 months".

Singha · Post by **Singha** » 01 Jun 2009 13:36

GM might file for bankruptcy tomorrow morning.

this is like Darkseid relinquishing his iron rule on the planet of Apokolips

Like all gods, Darkseid is a slave to his destiny, and it has been prophesized that he will meet his end in battle with his son Orion amid the fire-pits of Armagetto. However, until that fated day, all those underneath his heel know that Darkseid is power. Darkseid is unforgiving. Darkseid Is.

Singha · Post by **Singha** » 01 Jun 2009 15:04

marketwatch:

WASHINGTON (MarketWatch) - Once upon a time, the failure of General Motors Corp. would have shaken the entire U.S. economy to its foundation. But the once-mighty auto giant has already shrunk so much that its bankruptcy may be hardly noticed by an economy that has much bigger problems.

If all goes according to plan, the bankruptcies of GM /quotes/comstock/13*!gm/quotes/nls/gm (GM 0.75, -0.37, -33.04%) and Chrysler, which went bankrupt in late April, could cost about a quarter million people their jobs over the next year and a half, according to one researcher.

Whether GM's bankruptcy turns out to be a major or minor chapter in U.S. economic history will depend greatly on how quickly and painlessly it emerges as a new company, ready to compete, said Sean McAlinden, a top researcher at the Center for Automotive Research, a nonprofit research organization funded in part by the industry.

In its reorganization as it comes out of bankruptcy, GM will employ fewer workers, operate fewer plants and produce fewer cars, even in the best-case scenario.

Much of the required downsizing has already taken place as GM's position as the pre-eminent car maker in the world has eroded over the past three decades. During that time, GM's U.S. workforce has fallen from a high of 620,000 in 1979 to about 120,000 now.

How small has GM become? Even if all 120,000 GM workers lost their jobs tomorrow, it'd be less than the daily average of 156,000 jobs that have been lost over the past three months. The bankruptcy, however, is designed to make sure most of them don't lose their jobs.

bart · Post by **bart** » 01 Jun 2009 15:05

Singha wrote:GM might file for bankruptcy tomorrow morning.

this is like Darkseid relinquishing his iron rule on the planet of Apokolips

Like all gods, Darkseid is a slave to his destiny, and it has been prophesized that he will meet his end in battle with his son Orion amid the fire-pits of Armagetto. However, until that fated day, all those underneath his heel know that Darkseid is power. Darkseid is unforgiving. Darkseid Is.

Bankruptcy doesn't mean the the end of GM. It is simply a last-resort way of shafting creditors and unions, they will be hoping that a leaner less constrained GM comes out of it in some kind of shape to take on the competition.

Singha · Post by **Singha** » 01 Jun 2009 18:16

but its product portfolio doesnt ejatly fill one with high hopes. apart from shouting chevy volt they have done little to show they can compete with the new era of hybrids and small lean cars.

their core franchise of gas guzzling SUVs and pickups has seen steep falls.

buick ? oldsmobile ? hardly aspirational stuff.

Singha · Post by **Singha** » 01 Jun 2009 18:28

BW

MBA Jobs: For Some, a Waiting Game
Some companies are now asking graduating MBAs to delay their start dates for months, and many students are expecting the worst

By Lindsey Gerdes
B-Schools

For this year's MBA grads, "no" seems to be the answer to everything. No offers. No jobs. No internships. No call-backs. No interviews. Thanks, but no thanks. For those lucky students who already have an offer in hand, even yes comes with a no attached: Not yet.

In recent weeks, cash-strapped employers who have made firm offers have begun delaying start dates for MBA hires, mainly in service-based industries such as consulting, but also in more isolated instances at companies in industries ranging from consumer products to electronics.
Three- to Six-Month Delays

And it's not only new MBA grads who are facing delays. "We've had a couple of companies say to our interns: 'Can you start a couple of weeks later?' " says Jeffrey M. Fischer, director of the MBA Career Management Center at the University of North Carolina at Chapel Hill's Kenan-Flagler Business School (Kenan-Flagler Full-Time MBA Profile).

The delays for post-graduate permanent positions are usually anywhere from three to six months. Some companies such as Deloitte, which has confirmed delayed start dates for a handful of new MBA hires in its consulting practice, are providing graduates with partial compensation. Others are giving them an up-front signing bonus and even health benefits, while still others are offering little more than a handshake and a promise, leaving many wondering if the jobs will exist three or six months down the road.

With no money coming in, they're also wondering how they'll get by. One 28-year-old student at Northwestern's Kellogg Graduate School of Management (Kellogg Full-Time MBA Profile) had her start date with a global beverage company pushed back from just after Labor Day to January 2010. All she got was a relocation payment, and she won't get her signing bonus until 30 days after she starts. As a result, she'll may need to move in with her parents to make ends meet. "I really need that money now," she says, "not in six months."
"Assume You Don't Have a Job"

Like many graduates who told BusinessWeek about their delayed offers, this MBA insisted on anonymity for herself and the company, saying she feared alienating her potential future employer. BusinessWeek contacted all the companies that reportedly delayed start dates for these hires; all but Deloitte were unwilling to discuss them or provide details.

For graduates, delayed start dates create a dilemma: How do they stay on the good side of their intended employer while still hedging their bets to make sure they end up with some kind of paying job? Some have taken short-term opportunities at other employers, while others are secretly looking for other jobs, and still others are working for their future employers without pay until their official start date, just to keep their foot in the door.

Career counselors are advising students who have delayed start dates to seek temporary work to pay the bills and quietly pursue other positions so they can hit the ground running if their hoped-for job disappears. Some are less hopeful than others. Harry Kraemer, a former Baxter (BAX) CEO and current Kellogg professor, advised MBAs at a recent panel discussion at Kellogg to treat the offers as nonexistent and hope to be proven wrong. "If your start dates get pushed back," he told them, "just assume you don't have a job."

Pushing back start dates during dips in the economic cycle is not unheard of. In fact, employers have been known to delay start dates in every economic downturn, most recently in 2002.

This year, says Roxanne Hori, assistant dean and director of career management at Kellogg, the delays are more widespread, but they aren't yet as long as they were in 2002, when one Kellogg grad waited 18 months before finally starting his job.

But what if the economy doesn't turn around in the next six months? Hori hopes that companies will learn from their past mistakes and realize that in the short term it's not worth the reputational damage to ultimately rescind these offers, as some did in 2002, and in the long term, it is also detrimental to the success of the company. "From the short-term perspective, there is a branding issue. But more important is the impact internally. When you have a gap year when you don't have much talent coming through, it creates some lapses later on. You don't have a pipeline and that becomes a problem."
How to Hedge Your Bets

For MBAs, deferred start dates—even if the jobs do, ultimately, materialize—are a real hardship, says Maury Hanigan, president of the MBA Scouting Report. Many have mortgages or have uprooted their families to attend business school, so they don't have a spouse with an income to help pay the bills. "They can't just go and play in Europe for six months," Hanigan says. "They're older and they tend to be more established. They tend to have families or at least spouses. And they've got school debt kicking in."

The problem is that searching for a new job after having already accepted one is sometimes viewed as inappropriate, a violation of an unwritten code between employers and employees. Even so, Hanigan says, many MBA grads with delayed start dates are throwing job-hunting etiquette to the wind. "Realistically, I think students are keeping their eyes and ears open for other opportunities, but trying to do it quietly so they don't risk the job they have in hand."

Some who have accepted some form of payment—be it a relocation stipend, signing bonus, or partial compensation—say they feel they have formally committed to starting at a later date. But many say their future employers are encouraging them to take short-term project assignments with other companies to generate income during the interim.

First and foremost, says Kenan-Flagler's Fischer, students should try to be as honest as possible with their future employers so that they don't burn bridges. "The one thing I would tell students more than anything is how you handle yourself in a crisis situation sets the stage for how you're perceived in your career."

But even Fischer admits it's good to have a back-up plan. To give students one, UNC recently partnered with a training firm to give 40 new MBA grads a four-day crash course in credit analysis, analyzing and restructuring a company's debt. "We asked the question, in a bad market how do you take our finance education, which is quite good, and get the rubber to the road?"

Not a bad back-up plan to have because, while some job offers will eventually pan out, other students may ultimately be forced to get creative.

vsudhir · Post by **vsudhir** » 01 Jun 2009 22:01

conomist obituary to sumantra ghosal...

Typical of Ghoshal’s colourful communication was what he called his “springtime theory”. He would tell his audiences about his annual visit to Calcutta to see his parents in July. “Imagine the heat,” he would say, “the humidity, the noise, the dirt. It sucks up all your energy, drains your brain, and exhausts your imagination.” And then he would take them to the forest of Fontainebleau, near INSEAD, where he was a professor at the time, and point to “the smell of the trees, the crispness in the air, the flowers, the grass underfoot. How one’s heart lifts up, how the energy and creativity bubble away.” Go through the door of any business, he would say, and you can tell whether it is Calcutta or Fontainebleau. A manager’s task is to create a working environment that is like Fontainebleau, not Calcutta.

Link

Ghosal was prolly a good man. Selective quotations can destroy many a reputation. Let the dead RIP.

SK Mody · Post by **SK Mody** » 02 Jun 2009 00:06

Not an obituary exactly. Ghoshal passed away in 2004, but Con O mist wants to sell, in 2009, the book "Guide to Management Ideas and Gurus" at the bottom released in 2008. Maybe sales of Con O mist are sagging.

vsudhir wrote:The fall of the Mall (NYT)

Again, the article is date October 2008, but it has data for First Quarter 2009.

vsudhir · Post by **vsudhir** » 02 Jun 2009 03:28

Again, hearsay onlee but here's from a comment on a blog I follow a lot:

My sister in LA works for a packaging company (DVDs, CDs, etc). The woman who runs her border factory in Mexico was kidnapped today. Ransom is $1 million. Wait until people figure out that kidnapping would be even more profitable in the US.

As the US becomes more and more like a 3rd world country, and as it runs out of money to pay the police, the real estate values in gated communities could start to rise again (especially if they have armed guards at the gate). If America is in danger of becoming a backwater nation, then it could be in even greater danger of becoming a BlackWater nation.

Paints a bleak picture but hey, with each passing day, I don't even know what to believe anymore.

Prasad · Post by **Prasad** » 02 Jun 2009 04:14

vera_k wrote:
vsudhir wrote:How the mighty fall..... Harvard next in line?
Hope there's a fire sale on Harvard degrees about the time my kids are old enough .

vsudhir wrote:Well, moi is a keen observer of the econ and business education businesses.... so yes, this does seem concerning...

The Sacramento Bee today says that CA is likely to cut an additional 10% from the University of CA system professional schools (they already cut 10%) and possibly will eliminate all support for state university business schools. Some graduate schools in education and other majors already are self-support via the extension programs.
Goodbye blue sky...

Heard from a friend in UCLA that tenured professors were told to pack up and GO and that the uni could no longer support them. Tenured professors being let go in UCLA sure means dire straits in Ahnoldistan

Raja Bose · Post by **Raja Bose** » 02 Jun 2009 04:43

^^^ It is happening all over massa...no longer one hears smug academics claiming that "tenured==job for life". Tenured profs are now crawling on the same dirty lane as the industry abduls...no illusions! The usual way to kick out the tenured TFTA out seems to be shutting down their departments and funding (if possible).

vsudhir · Post by **vsudhir** » 02 Jun 2009 06:03

In China, Geithner Backs Cooperation

On a visit to Beijing, U.S. Treasury Secretary Timothy F. Geithner said the global financial crisis seems to be easing, and reassured holders of American debt.

Yup, count moi reassured anyway.

AnimeshP · Post by **AnimeshP** » 02 Jun 2009 08:18

Geithner tells China its dollar assets are safe

Chipanda's good-cop-bad-cop routine for li'l Timmy

"Chinese assets are very safe," Geithner said in response to a question after a speech at Peking University, where he studied Chinese as a student in the 1980s.

His answer drew loud laughter from his student audience, reflecting scepticism in China about the wisdom of a developing country accumulating a vast stockpile of foreign reserves instead of spending the money to raise living standards at home.

But later in the day, Chinese Vice Premier Wang Qishan said it was important for the two nations to show the world they are working together through their joint economic dialogue.

Singha · Post by **Singha** » 02 Jun 2009 10:17

OMG - UCLA - one of the high temples of the UC system. shakinah onree saar.

many a world beating EE/CS type has emerged from its hallowed portals.

in my wife's former univ too (tier2 univ) I see that two departments have been merged for
um 'better synergy/resource utilization etc' .... the older profs will probably get gently
'managed out' in due course.

Prasad · Post by **Prasad** » 02 Jun 2009 10:21

Singha wrote:in my wife's former univ too (tier2 univ) I see that two departments have been merged for
um 'better synergy/resource utilization etc' .... the older profs will probably get gently
'managed out' in due course.

Hmmm, now why does that sound like mine...

Singha · Post by **Singha** » 02 Jun 2009 11:12

N sets of MBA restructuring consultants/efficiency-hawks came up with the same idea -
linked by DroidNet ?

SK Mody · Post by **SK Mody** » 02 Jun 2009 14:13

VSudhir wrote: but hey, with each passing day, I don't even know what to believe anymore.

Just received this hilarious piece of propaganda in my email:
8 Indian cities in global 25 risky offshoring places

Bangalore: Eight Indian cities are listed among the world's 25 riskiest places for offshoring, mainly on concerns like terrorism, pollution and geopolitical issues in the country, says a study by U.S. based Brown-Wilson Group. Of all the cities, the national capital region (NCR) comprising Delhi, Gurgaon and Noida has earned the dubious distinction of being the worst offshoring destination within the country, according to the survey published in the annual Black Book of Outsourcing, a publication considered as a major independent analysis and advisory research for the outsourcing players and investors globally.

The NCR is followed by Mumbai as the second riskiest offshoring hub within India, while Kolkata has been ranked as least risky in the country. The other domestic cities included in the list are Bangalore, Hyderabad, Chennai, Pune and Chandigarh. In the overall global list, NCR has been ranked as sixth most riskiest, Mumbai ninth, Chandigarh 15th, Pune 20th, Chennai 21st, Bangalore 23rd, Hyderabad 24th and Kolkata the 25th most riskiest in the world.

No Indian city could find a place on a separate list of 25 safest offshoring destinations. Both the lists have been published in the 2009 edition of the Black Book of Outsourcing, brought out every year by U.S.-based Brown-Wilson Group.

The rankings of safest and riskiest places are based on factors like high terrorist or rebel target threats, uncontrolled environment waste and pollution, corruption and organized crime, unstable currency, geopolitical conditions and unsecured networks and technology. In terms of terrorism threats, Mumbai has been put on top, followed by Delhi NCR and Jerusalem in Israel. Further, Delhi NCR has been ranked as the riskiest place when it comes to heightening trans-national and geopolitical concerns. Bangalore, another leading outsourcing destination in the country has been ranked as the riskiest place in terms of uncontrolled environmental waste and pollution.