Global Economic Crisis: Just another ParetoEfficiency

As often happens when you want to get out of an undesired situation, you have to struggle for it. As explain by a brilliant editorial from last week’s Economist, in this troubled economic times, the trade-off doesn’t changes.

Credit Cards - One of the major sources of customer debit

Economies of western countries have relied heavily on debt to finance their growth.  While some countries, like the US, have seen debt mainly in the hands of customers (that have often financed their spending through generous credit lines), other economies, like many European states, have seen this debt in the form of unhealthy state-backed-up companies (such as banks, airlines, automotive companies, etc.), or national bonds issued to cover exposed positions.

The mistake done by many, is to consider debt as poisonous evils. Au contraire! On the contrary, debt is more like a medicine than a poison.

Debt is a great fuel for economic growth: without debt, Sara Jessica Parker wouldn’t be able to wear her Manolo Blanhik (as the author of the article says), Airbus wouldn’t be able to build its planes, and Spain would never be able to lower its unemployment level (putting aside the euro-currency complication for a minute). But debt, like any medicine when exceeded the recommended dosage, can become poisonous as well.

In recent years we have seen two main situations that have allowed debt to exceed the tolerable limits and create a financial crisis: bad debt, and financial speculation. Let me explained how they worked (simplifying a bit).

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Shaun White’s Private Halfpipe Could Make me a Philanthropist

The corporate world of big companies, with big money and big budgets, has allowed the pros in any sport to advance to a level where all the previous achievements and records are broken so easily that there is almost nothing special about them anymore. Think about the Moto GP, F1, Running, Swimming, Basketball, Sailing and much more, where the records of the past are not even comparable to today’s achievements.

Shaun White in the halfpipe

One of these cases is snowboarding. As many people know, Shaun White may be one of the best snowboarders in the world right now. His primary sponsor, Red Bull, has endorsed what is known as the “Project X”, which consists of creating the best snowboarding condition for its star, to allow him to take snowboarding to “the next level”. One of the greatest achievements in Project X was to create the best halfpipe in the world, completely isolated from any ski resort, accessible only by helicopter, and built from controlled avalanches and 300 man working hours. If you want a full view of the enormous effort (of time, people, money and resources) that this project has requested, check out the Project X Website.

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Website Back Online After Web Host Disruption

Hello world, the site is back online after being torn down by the host disruption that has caused the loss of the database containing the website. I know these are the risks of going with low-cost hosting like Top Host, but still it is the worst customer experience ever! In any case, here is what I've learned from this unfortunate event: …