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V V: Correcting the fault lines of capitalism
In the long run,” John Maynard Keynes had famously said, “we are all dead.” Keynes may not have been quite dead, but he had lived a ghostly half-life in the corridors of central banks and within the academia for decades. Now with the failures of unbridled capitalism on a global scale, he is back in fashion, along with Marx. John Cassidy, the finance correspondent for the New Yorker has come with How Markets Fail: The Logic of Economic Calamities (Allen Lane/Penguin £25), which draws heavily on Keynes to recount the story of America’s housing boom and the failures of regulators and self-deception of bankers that led to the present financial crisis. The book is a sequel to Cassidy’s earlier book DotCon that dealt with the stupidities of the stock market bubble in the late 1990s, but both deal with one central idea: the belief that society is best served when individuals are left free to pursue their self-interest was “Utopian economics” and led to disaster because of “the crooked timber of humanity”, and the uncertainty that is inherent in any human enterprise.

News of the day

Govt imposes stock limit on bulk sugar consumers
The government today imposed stock limit on bulk sugar consumers, allowing them to keep quantities sufficient for only 15 days of their consumption at any point of time. The stock limit would be in force for six months and would be applicable to consumers whose monthly sugar consumption is at least one tonne, the government said in a statement. The move will affect confectioneries, large biscuit and beverage producing units.
Corporate

Allegation that FBI working on co's case false: Citi

Troubled financial services firm Citigroup has said that any allegation that the Federal Bureau of Investigation (FBI) is working on a case involving breach of the company"s systems resulting in millions of dollars losses is false. - TARP repayments don"t hurt bank lendings: Geithner - Original visa application form of Headley "retrieved" - US Treasury stops plan to sell Citi shares: report - Wall Street fat cats see frugal compensation diet in "09 - India cancels visas of Headley, Rana - Indian consulate denies "missing" of visa papers of Headley "Any allegation that the FBI is working on a case at Citigroup involving breach of Citi systems resulting in tens of millions of dollars losses is false. There has been no breach and there have been no associated losses," The Wall Street Journal said citing the company"s statement. The moves came after The Wall Street Journal reported that the FBI is probing a computer-security breach aimed at accounts of the company"s Citibank unit. According to the publication, it couldn"t be learned how funds were stolen, whether through Citibank"s systems or by other means. The breach could have involved a contractor that processes transactions for the US financial institution. Investigators suspect that the theft was conducted by a well-known Russian cyber gang. The report quoted Citi as saying, "Occasionally, as with virtually all financial institutions, there are instances of fraud or breaches of third-party systems that result in our taking actions to protect our customers and Citi. "However, contrary to the Wall Street Journal report, there has been no breach of Citi"s systems."


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