What caused the crisis

It will take years and many arguments to settle the questions

But Alan Blinder from Princeton and former vice chairman to the Fed provided a preview in NYT of decisions that lead us closer to current circumstances

Wild Derivatives
Sky-High Leverage
A Subprime Surge
Fiddling On Foreclosures
Etting Lehman Go
Tarp’s Detour


(for complete article click here):

Econ matter in Obama Inauguration Speech

State of US economy:

"Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost; jobs shed; businesses shuttered. Our health care is too costly; our schools fail too many; and each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet. "

Remaining potential:

"Our workers are no less productive than when this crisis began. Our minds are no less inventive, our goods and services no less needed than they were last week or last month or last year. Our capacity remains undiminished. But our time of standing pat, of protecting narrow interests and putting off unpleasant decisions"

What to be done:

"The state of the economy calls for action, bold and swift, and we will act — not only to create new jobs, but to lay a new foundation for growth. We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together. We will restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost. We will harness the sun and the winds and the soil to fuel our cars and run our factories. And we will transform our schools and colleges and universities to meet the demands of a new age. All this we can do. And all this we will do."

Role of government and market:

"Nor is the question before us whether the market is a force for good or ill. Its power to generate wealth and expand freedom is unmatched, but this crisis has reminded us that without a watchful eye, the market can spin out of control — and that a nation cannot prosper long when it favors only the prosperous. The success of our economy has always depended not just on the size of our Gross Domestic Product, but on the reach of our prosperity; on our ability to extend opportunity to every willing heart — not out of charity, but because it is the surest route to our common good."

Europen Economist on Financial Crisis

Just find out a link to download a complete book for free by strong list of European economists o financial crisis. The authors including Guido Tabellini, William Buiter and Paul de Grauwe.

Highly recommended to anyone interested in non Anglo Saxon point of view. Click here to read in full

P.S.
The VoxEU website is an excellent portal of column and papers of many top European economist. Ignore at your own perils.

Economist on Indonesia

Economist put out an article on Indonesia. they are quite optimistic

Most banks are healthy, thanks to radical reform after the Asian crisis of a decade ago. And in 2008 the country achieved rice self-sufficiency for the first time in 24 years. Manufacturing is starting to feel the heat but only 25,000 workers have been laid off since November. And, according to research by the Asia Foundation, an American NGO, the huge informal sector has yet to feel much of an impact of the crisis.

Click here to read complete article

Getting NPWP is quite a taxing effort

I was calculating the benefit against cost of having NPWP. Being a student with unsteady job(s) make worry about the hassle of filling a tax return especially if I am abroad.

But Pak Darmin, the director general of tax, is a shrewd economist and he knows how to tilt the incentive. Just like busway make life harder for non-busway user. Now the non-NPWP have to pay higher percentage from salary and property sales as well as, a deal clincher, got to pay 2.5 million if ever going abroad.

Thus I went at final days of sunset policy, turn out to be extended to end of february, to the my area-designated tax office. It was pack with people, one official there told me they got 600+ applicant in one day.

But the system could be improved for sure. They dont have numbers but one must wait to be called to get the NPWP card after submitting the form. So people stand shoulder to shoulder close to the announcer to be able to hear him. It get really hot and exhausting. If they better planned then we could have a seat while waiting for our number to be flashed on the announcement.

Yup, it was quite a taxing endeavour. While the IT system of tax has been improved, the human side still need more work.