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Until recently, economists had done shockingly little work in this area. "Nobody had looked at the flip side, which is, Can there be costs?" says Thomas Philippon, a young Frenchman who teaches finance at New York University's Stern School of Business. "That is because it's harder to measure, and it's a bit more controversial." Philippon has begun trying to fill this research gap, and while he hasn't come up with definitive answers, he has made some very interesting discoveries. (See 25 people to blame for the financial crisis...
...probably be better off with a smaller, less-well-remunerated financial industry than the one we've had. Exactly how much smaller? "I've done what I could, but it's not like I've found the right formula, that finance should be 6.65% of GDP," jokes Philippon. As for Blankfein and Griffiths, they clearly need to come up with a better formula for defending their paychecks...
...attacks, which have targeted an Islamic university, shopping centers and police academies, have done the seemingly impossible: turned Pakistani public opinion against militants who had formerly been considered holy warriors fighting international forces in Afghanistan. That has allowed the army to go in with popular support. "This operation is not against an area or a tribe," says military spokesman Major General Athar Abbas. "The objective is to regain the space lost last year when Baitullah Mehsud declared war on the state of Pakistan...
Maybe. On the other hand, Pakistan's civilian officials have hardly done much to improve lives when they have had the chance. It was governmental neglect that enabled militants to establish a foothold in the tribal areas in the first place. Unless the government can follow the army's offensive with development, infrastructure, jobs and justice, extremist groups will always thrive in the tribal areas. Taking the battle to the militants in South Waziristan, says Lieut. General Ali Muhammad Jan Aurakzai, the former governor of Pakistan's North-West Frontier Province, "is a requirement, but not a solution - a first...
...parliamentary leaders loyal to the Prime Minister. Administration officials deny taking sides. Yet on the eve of his July summit in Moscow, Obama praised Medvedev and referred to Putin as having "one foot in the old ways of doing business." He later praised Putin too, but his Administration has done little to build bridges with the Prime Minister, who remains a crucial national decision maker. Secretary of State Hillary Clinton did not even see Putin when she was in Moscow recently, because the Administration did not coordinate the trip with his office; he was off signing an energy deal...