Market Turmoil, Just the Pregame for the Main Event?

Umair Haque today does a pretty good job of terrifying anybody who pays attention to the economy — see “Market Correction? Try Perma-Crisis.” According to Haque, if those in charge don’t do something to restructure their dysfunctional institutions, we could be “on the Express Train to the Federation of Banana Republics.” In such case, he thinks “today’s market turmoil is probably just the pregame for the main event.”

Haque says that about the current economic crisis:

[I]t’s fundamentally grounded in the institutions we use to (mis)manage the economy. They’re deeply broken, and throwing money at broken institutions doesn’t fix them — it does the very opposite: it entrenches them, shores them up, fortifies them against the future.

He outlines six lessons on crisis that help explain why the situation is self-perpetuating, including:

When people who are prisoners of the paradigm that caused the crisis are in charge of fixing it, bet on … more crisis.

AB — 5 August 2011

Green Malls, SUVs, and Mansions? What’s Up With That?

Tracey Schelmetic at ThomasNet Green & Clean today throws some much-needed cold water in the face of affluent consumers who think they are helping the environment by driving a hybrid SUV or building a 5,000-square-foot “green” house:

The Ford Escape Hybrid, considered the most fuel efficient hybrid SUV on the market, gets about 32 mpg combined. This is about the same as a Toyota Yaris with a traditional engine, and far below the efficiency of a Honda Civic Hybrid, which gets 42 mpg combined.

She also takes a swipe at Whole Foods, along with some comments that will please Trader Joe’s fans:

Sitting in opposition to Whole Foods is more environmentally minded chain Trader Joe’s, a company preferred by many eco-minded shoppers. Keeping an eye on the most important factor in a green business – building size – Trader Joe’s operates out of far smaller buildings. Stores tend to average between 8,000 and 12,000 square feet, compared to Whole Foods average store size of 50,000 to 80,000 square feet. Trader Joe’s also pledged to eliminate all GM foods from its shelves in 2001, and by next year will sell no seafood products that are not sustainably sourced.

AB — 2 August 2011