The Ecunomist
• Ecu-cribs • Cooking Corner • StarTales • Economic Bussiness • Committee pages • Photopages Introduction Week/Change of board
Official Magazine of study association ECU’92
18th year, 1st Editon November 2008
www.ecu92.nl
Nu bestudeer je de Miljoenennota. Binnenkort schrijf jij eraan mee. Financiën past op de centen. Dit ministerie is de penningmeester van het Rijk en dus verantwoordelijk voor
Financiën zoekt startende economen
bijvoorbeeld de Miljoenennota. Hier worden de financiële
Wij bieden je van meet af aan veel ruimte voor eigen
meevallers verdeeld en oplossingen gezocht voor de
verantwoordelijkheid. Het kan dan ook zomaar gebeuren
financiële tegenvallers. Op dit ministerie werk je altijd
dat je direct na je studie begint met het schrijven aan de
aan uitdagende projecten met grote maatschappelijke
Miljoenennota. Dat moet je willen, dat moet je kunnen.
gevolgen. Ook als starter, want je doet direct mee als
Iets voor jou? Toptalent is van harte welkom. Zeker als
volwaardig teamlid. Dit betekent wel dat wij veel van
je binnenkort als econoom afstudeert. Kijk voor meer
jou verwachten. Bij Financiën tel je meteen mee.
informatie op www.minfin.nl. Je sollicitatie mail je naar recruitment@minfin.nl of je belt 070-342 85 32.
www.werkenbijhetrijk.nl
Content And Colofon
Once a year The Ecunomist is published in a circulation of 2500, combined with the Company Day brochure. Four times a year The Ecunomist is published in a circulation of 1500 for the members, patrons, Æcunomen and external contacts of ECU'92.
Introduction From the Editor-in-Chief .............................4 Updates Agenda ......................................................5 Æcu ...........................................................7 Educational Affairs.....................................7 Features WailingWall ................................................8 ECU Cribs............................................12/13 Interview (Prof.Dr. Clemens Kool) .......14/15 Economic Business ..................................22 Brenner ..............................................26/27 Actions en Happenings Introduction new board .............................9 Work At...............................................10/11 Reflection (introductionweek) ...................21 Photo’s Photopage Introductionweek ....................16 Photopage Various ...................................17 Photopage Camp in Heino .......................28 Committee Pages: Editorial Committe...................................20 Cucolecuuu!.............................................25 Relaxcie ...................................................25
Published By: Studievereniging ECU'92 Janskerkhof 12 3512 BL Utrecht Tel.: 030-253 9680 E-mail: info@ecu92.nl Internet: www.ecu92.nl Printed By: Hakker van Rooijen Special Thanks To: ECU'92 Board Y.S. Brenner
Editorial Committee: Folkert van Wier Loura Vlam Jessica Krom Arjan de Hoop Rens Dautzenberg Lisanne Vermeulen Jennifer Evans Freelancers Ian Koetsier Joël Kroodsma Elena Meshcheryakova Lizzy Ansingh Juliette Kuiken Joris Hehenkamp
And... Student Abroad (Joris @ Barcelona) .....18/19 StarTales ..................................................29 Cooking Corner .......................................24 Final Say ..................................................30
© Study Association ECU'92. The copying of articles is permitted provided that the source is stated
The Ecunomist - Annual Volume 18, Edition 1 - November 2008
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From the Editor in Chief
Everything Changes Folkert van Wier - Dear reader, everything changes. Like a wise man (or women, why not) once said: ‘If there is a wind of change blowing, some tend to build windscreens an others windmills’. My apologies as I have no clue whatsoever where it came from, but I just like the old Dutch wisdom in it. As you might have noticed, the Ecunomist has also changed a bit. This year’s editorial committee is proud to present a new lay-out and a new content. The well-know and famous front page and visual characteristics have been replaced by new ones, and I hope that our dear readers will like it. Also we tried to reform the old structure of the Ecunomist, as you will find out when turning the pages. New items, new contributions; we hope that you still pick up the magazine when it enters your mailbox and read it at the lunch table or on the toilet. Whatever suits you, my dear reader. For those more traditional oriented readers, please notice that you are still looking at the Ecunomist. I have had the pleasure to dive into the world of the Ecunomist (yes a world it is) in a short period of time in order to prepare for the job as chief. Believe me when I say that there will surely be enough attention given to the loyal reader’s point, shaped by the magazine that has improved his life the past somewhat of years.
In short, a very good mix of both worlds, so a bit of windscreen and a bit of windmill, to put it metaphorically. Enough self-praising and euphoric chatter. The daily activity this first two months have also been dominated by the introduction. New bachelor, new master or a new year at least. Everything with their old and new aspects. A new board, a new committee with old and mainly new people. Having a beer on the first Monday of the month, like always. So that leaves us with the following -most valuablelines of this first foreword and preface that the chief may write this year. As I have practiced a lot in study-papers I would like to thank everyone for their support and enthusiasm; the ECU’92 board, USE, all friends of ECU and of the Ecunomist, the editorial committee for all their effort and creativity and last but not least: you my dear reader. I hope we have served you well. Remember, the best way to cope with changes, is to effectuate them yourself. Merci merci, Folkert van Wier
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The Ecunomist - Annual Volume 18, Edition 1 - November 2008
Agenda
Agenda and Association news November 14-16th:
AC Wiekent to Wellerlooi
November 18th :
Lecture on Financial crisis
November 19th :
REBO party @ Monza
November 20th :
Qualifiers Trading Trophy
November 26th :
Small Business Career Day
December 3rd : English
Sinterklaas with the Committee
December 4th :
Finals Trading Trophy
December 15th :
Dancing with the Cultural Committee + BODEM
December 17th :
Prom with Alcmaeon
January 1st :
New Years dinner
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ADVERTENTIE MINFIN ADVERTENTIE VOLGT NOG
Æcu + Education Affairs
Dear Æcunomen Robin Bode – A new year, a new beginning. With a fresh new board and a fresh new alumni committee we are ready for this new year. The committee has yet again changed and has some new fresh faces who can give valuable new input. Shockingly enough, a tradition has been broken, this year the coordinator for the alumni committee will not be the secretary but me, the treasurer of the board. For the upcoming year I will be filling this page and do my utmost best to keep you up to date with everything that might concern you. First of all, let me introduce you to the new alumni committee. Unfortunately a few, except one. have left us, therefore I would like to thank Yde Starreveld, Folkert van Wier and Juliette Kuiken for their hard work and dedication towards the alumni. Martine de Groot is the sole survivor of the committee but luckily we have found some new members who can assist her this year! The alumni committee will be formed by, next to Martine, Jouke Donselaar, Armina Ajkicic, Erik van der Have and Marloes Heddema. You will hear more from them in the next edition of the Alumni Newsletter. We are still looking for one new member because Jouke and Armina will have to leave us after ½ year. For upcoming year we will of course yet again organize the alumni cabaret which will take place in our DIESweek. It has proven to be a big success. Furthermore the alumni committee will organize an event before Christmas for you all, so keep an eye on the alumni newsletter! Last but not least, if you want to keep supporting us you can sign up to become an Æcunoom and you will keep receiving the Ecunomist and the Alumni newsletter. To become a Æcunoom all you have to do is to send an e-mail to our secretary at secretaris@ecu92.nl! Kind regards, Robin Bode - h.t. Treasurer
Educational Affairs Ellen Aalbers - I, Ellen Aalbers, started this year as the coordinator Educational Affairs of the ECU’92 board 2008-2009. One of my tasks in this function is being a student board member in the Bachelor and Master Board of the Utrecht University School of Economics. In these boards I represent you guys; the students. Both boards appreciate your opinion as a student. They design the Bachelor and Master program for their students and want to be informed about the students’ opinions. Furthermore the Master and Bachelor Educational Committees have an important job in student participation, as they are the ones to advise these boards on important issues. One can think of the English language by teachers and students, internationalization, grading, repeaters education and a lot more. They are here to keep their eyes open for issues that live among the students. I can proudly present this years educational committees to you: Bachelor Educational Committee Ewout Uunk (chairman) Onno de Jong Chay Mohammed Anne Meijs (bacheloroc@econ.uu.nl) Master Educational Committee Ilona van Spellen (chairman, International Economics and Business), Alejandro Caceres (Economics & History), Thijs Weistra (Economics & Social Sciences), Till von Versen (Economics & Geography), You? (Economics & Law). (masteroc@econ.uu.nl) For complaints, questions or suggestions regarding educational affairs, you can contact me at education@ecu92.nl or walk in one of the Ecurooms. Ellen Aalbers Coordinator Educational Affairs 2008-2009
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Wailing Wall
Salad Dressing
Florian Krätke - Ladies and gentlemen, for your amusement, I present a tirade about everything but mainly about nothing. “What in the world makes retailers think that we need 37 types of salad dressing in every local store? Where did this ‘freedom of choice’ rage come from? So all of a sudden the lowly consumer must have their say, thinking they know what’s best for them, and instead of actually pursuing what they want it must be handed to them on a silver platter in one of the most futile and wasteful exercises of ill-minded marketing in decades. How can you expect the ‘modern consumer’ to dictate your business – by all means, they are a badly brought-up bunch with no moral backbone to speak of. Since when does everyone else’s lifestyle have to be spat in your face all the time? Life is what you build from it and no, campaigning for raspberry-flavored dressing does not make you persistent or noble, it declares you for what you are; a needy child. Say what you want about religion, at least it taught generations not to sit on the toilet seat shedding pubic hear, instead forcing nitroglycerine up their backsides leading to some astonishing achievements. All technoboomers have contributed so far is complaints about things which are perfectly ordinary (certainly nothing new) and solutions to problems we don’t have under the pretence of guilt syndromes. Hurrah, we have societies with people living in the extremes – extreme laziness (i.e. professional unemployment, the most pathetic paradox of all) versus workaholism. Come to think of it, the amount of 8
new “-ism’s” appearing is baffling. It’s as if all pompous philosophy freshmen got stoned and created an insider joke which every two-bit backslider is in on. It’s easy to pick your little category (of income, car-type, living space, friends, music, salad dressing) and claim it. Well here’s something new: you are not the judge of your own greatness, and nor is your mother. Society says ‘get to work!’ And get me a honey-pecan-avocado dressing while you’re at it.” Thank you.
The Ecunomist - Annual Volume 18, Edition 1 - November 2008
Introduction New Board
ECU’92 Board 2008-2009 Rens Dautzenberg - Because this is the first edition of the Ecunomist this year, I will introduce you to the brand new ECU’92 board of the academic year 2008-2009. Since their installation on the 9th of September, the new board has been working hard to get things started. You may have noticed the agenda poster that has been hanging throughout the U-building at University College. You will find all the upcoming activities organized by your study association on it. Furthermore, the active members may have noticed their responsibility has risen since our installation. This is one of the other focus points of this year’s policy plan: to give more responsibility to the people it belongs to, namely you as a member. Besides knowing what the ECU’92 board can do for you, you have to know who we are. First of all, there is Guido, the secretary slash coordinator internal affairs. Having two functions makes Guido a very busy man, still he finds the time and energy to make coffee for you guys and to party a lot, especially with the girls of Alcmaeon (but the same goes for me I have to admit). Next in line is Robin, the man of the money within ECU’92. As a treasurer he’s is the man to go to if you need any money. In his spare time you can find him drinking and partying or playing tennis, or doing both at the same time. Douwe is our coordinator external affairs and that means he is in contact with all the companies. He is able to combine a rough, masculine appearance with a soft, sweet character. Douwe’s main job is to make you familiar with the chances and oppor-
tunities for you on the labour market, so don’t hesitate to ask him any questions whatsoever. Then there is the only girl of the group: Ellen, the coordinator educational affairs. As representative of the students of USE she is always trying her very best to act as a voice of you, the students. Being the only girl can sometimes be tough; but the rest of us try to make sure she feels like one of the guys. Last and least is me, the chairman of this group of people. I try to make sure all the other ones are doing their job as they should, while I do nothing at all. Of course, this is not true, because being a chairman is the hardest job of all! Although I have to say, so far things are going fine and everybody is still alive and well. Like every board says in the beginning of the year: this year will be a lot of fun and we will do our very best to make great things happen for you, our beloved members. But this time, it’s true. The most popular board (voted officially on the General Meeting of the June 19th, 2008) is going to make ECU’92 even better and more fun than it already is. Cheers!
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Work At...
Want to be a Perfomance Analist? Dorrie Fleuren about her job as Performance Analist at Mn Services: “We work in an extremely dynamic financial setting and there are constantly new challenges to solve.” Even though stock markets and banks are currently in the middle of an international financial storm, the forecast for econometrists still looks good. The demand for high potentials that combine mathematical talent and analytical skills is as high as it ever was – in the commercial sector and the government alike. But which sector suits your personal ambitions the best? And do all organizations truly facilitate the professional development of their employees? Dorrie Fleuren, 27, ("I have always had an affinity for mathematics and economics") chose to work for the investment management and pension fund administration organization Mn Services and feels perfectly at home there. “What really appealed to me was Mn Services’ rapid growth in such a short timeframe. The investment funds increased from 15 billion in 2001 to 65 billion now, and more institutional investors and pension funds are using our services every year. This situation means that there’s opportunity for ambitious starters to prove themselves and grow with the organization. I’m personally involved in several multidisciplinary projects at the moment; a great way to expand my professional horizon.” ´Puzzler wanted for pattern recognition´ Strictly speaking, Dorrie is not an econo10
metrist. She completed her Study in 2006 at the University of Tilburg in corporate management with minors in financial economic management and investment theory. “I did enroll in the econometrics program but I switched after my freshman year. In my current position as Performance Analist I regularly use econometric models. It’s a real “puzzle solving job” that constantly challenges you to analyze complex patterns, to solve them, and to formulate rational explanations for any exceptions in the data.” At Mn Services the Performance Analysis unit keeps a constant eye on the performance of a diverse range of investment portfolios. Dorrie: “Incredibly important, because we have a
The Ecunomist - Annual Volume 18, Edition 1 - November 2008
Work At...
tremendous social responsibility and we always want to have the best performance measurement reports for our customers.” Career opportunities Dorrie is very satisfied with every aspect of her job: with the work itself (“very diverse and you quickly acquire in-depth knowledge of diverse investment categories and their corresponding opportunities and restrictions”), with the career advancement opportunities at Mn Services, and with the highly motivated environment. “I’ve always been the kind of person who likes to get involved. In my college days I was an active member of the Financial Studies Club Tilburg (FST) and editor-inchief of Faces. The experience that I gained doing that, for example, in terms of organizational skills and chairing meetings, comes in handy now in my work for the workers’ council. The ‘typical’ Mn Services employee is very involved with the organization. This is partly reciprocal because Mn also actively facilitates our professional development. In the business unit Trust Management several employees are studying for their CFA degree (Chartered Financial Analyst) and you can always hone your personal
competencies by attending training programs. If you want to grow, Mn Services is the right place. And this includes opportunities for career advancement within the organization. For Performance employees, Portfolio Analyst or Fund Manager would be a logical and exciting next step.” Seek new challenges Is Mn Services the right employer for every econometrist? “I’d say it is. But it takes more than analytical skills and an affinity for numeracy; you do have to be able to deliver great work under pressure. We monitor an incredible amount of data and we’re constantly being called on to perform ad hoc analyses, for example when the stock markets do something unexpected. But that’s precisely what makes this job so fascinating: we work in an extremely dynamic financial environment that constantly presents new challenges.” Mn Services N.V. Address: Burgemeester Elsenlaan 329, 2282 MZ Rijswijk Telephone: +31 (0)70 31 60 160 Website: www.mn-services.nl
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Ecu-Cribs
The story behind Cambridgeflat 789 Lisanne Vermeulen and Loura Vlam - Ecu-cribs is a new column in the Ecunomist. For this column we will visit different cribs from your fellow students. This time we have visited Folkert, Martijn & Coos at the Cambridgeflat. As you might know already these three guys are very active Ecu’92 members. If you want to show your crib to the rest of the world, please send an e-mail to redactie@ecu92.nl! I’m Folkert van Wier (22 years). After Highschool I became a really nerdy freshmen and collected all the 60 points! Then I decided to became a member of Unitas and now I’m already a fifth year student… I participated in the following committees within Ecu’92: Secu, Alumni and I’m still a Editorialmember!
I’m Coos Santing (23 years). Born and raised in Dongeradeel. For people who like to know where that is, we got the following explanation: “It is a little village somewhere in Friesland and my first steps were on the dike at the Waddenzee.” Further I have been a member of the board in the years 2006-2007.
I’m Martijn Jongejan (21 years). I am the youngest economist from us three and that is why they also call me the “huisveut”. But I like to be called the “rebel in the house”. This year I decided to join Orca. I was member of the following committees within Ecu’92: Secu, Company-day and Almanac.
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The Ecunomist - Annual Volume 18, Edition 1 - November 2008
Ecu-Cribs “We can not talk about women, surely not when Pauline finds out!” How did you end up in this house? Coos was registered at SSH and after waiting and waiting (and some more waiting) he was invited to check out the crib. He was not immediately sure whether he should take the room or not, because the crib was very dirty… Coos already lives for 3½ years at the Cambridgeflat. In the summer of 2006 Folkert joined the gang. Martijn was really lucky and became a member through the backdoor. Coos called SSH and used all his charms to get Martijn into the empty room. This nasty story happened two years ago.
Most embarrassing moments..? All together: “We all broke our beds at least once during an adventurous night with a girl!” Maybe it’s time for a more solid bed..? Who’s the Boss? Folkert: “I am!” Martijn: “No, I am!” Coos: “What about me then?” And what was the most difficult time? That has to be the Secu-trip. Coos: “We made a ski trip. Unfortunately there were three of us and only place for two…I was on the board so I had to go and eventually Martijn joined me. We left Folkert in the crib, he was completely in tears. But..the year after he could join the ski trip after all with the cutest girl from Ecu’92. Guess who?
“Coos peeps. But..Folkert is the only one who has a binocular” What was the best moment so far? Folkert: “One of the best moments was at a party in Tivoli the Helling (Swakfeest). We had been told that Zwakfeesten were very cool and that there would be a lot of nice chicks. Unfortunately is was a really dull party. But the three of us drunk a lot of beer and made it a fun evening after a all. And we live happily ever after!” Martijn: “After a night out we came home and decided to climb the HBO-buildings at the Uithof. There were busy building on the top and there stood electric cars. Off course we had to check out if they worked!” Coos: “Also after a night out (again). Martijn and his brother came home after a wild night at Utrecht city. Me and Folkert on the other hand had an early start so Martijn made us some scrumbled eggs and bacon.”
“Folkert irons his underwear…” If you became enthusiastic after reading this article and you want to meet this guys in real life. They told us there will be a party very soon! But there are a few conditions: girls are for free but you have to come up by the stairs. It is on the 14th floor..
“I will not hang this story above my bed, even worse it will mean my definitive end within Ecu...” The Ecunomist - Annual Volume 18, Edition 1 - November 2008
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Interview
Student Life in the Eyes of the Faculty Elena Meshcheryakova – For this edition I interviewed the Dean of Utrecht School of Economics (USE) Prof. Dr. Clemens Kool. No matter how much I tried to mislead him by asking confusing question, he as a true teacher could see through my words and give answers with great diligence. At the beginning of the interview it was crucial to establish Professor’s Kool objective # 1 as the Dean, because this matter influences on the course that USE as an institution will be taking in years to come. “It is important to make a further success of USE. Developing stages were completed by reaching the objective of 250 students in first year of the Bachelor. It is time to focus on research (Tjalling C. Koopmans Research Institute) and Master programs by further increasing productivity in USE, as our high quality of education should be maintained. Investigation into the labor market and demand for specialists will help USE produce high quality workers, who are not just trained in economics, but also come from an internationalized environment. As the Dean, I am responsible for different segments within the USE, and my duty is to balance goals and set priorities. Our school is an organization of professionals, skilled teachers – who work very hard. I believe that USE is going to prosper.” To divert some attention towards the “returning” 2nd and 3rd year students, I opened a topic on ‘coping with the failed courses’. Can the faculty accommodate students, can indulgences be expected? “A big problem arises when students fail courses - as the number of teachers and money that USE receives from university depends on the success rate of the students. If students fail classes – there will be shortages in funding. USE cannot provide increased contact hours, especially for those students who are repeaters. Just
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as the school cannot reduce the intensity of the course as it will compromise the level of education that USE provides. There is a nation-wide system that checks the standard of courses and a vicious cycle will be set in motion if USE makes the study easier = level of education is not maintained = negative external assessment = reputation of USE goes down = Bachelor students cannot enter Master programs in other universities. The only solution to this is to get to the correct levels of education and support students in their pursuit of knowledge.” Being concerned with this problem I asked about ‘secret weapon’ that will make sure the majority of students pass courses and sustain interest in the field of economics and what type of students are needed to make USE successful, the response was simple: “There is no ‘secret weapon’, because success of the individual student depends on the student. USE sets the stage to provide the conditions where students can do their best. I believe that out of all freshman 90% are talented enough to successfully complete the Bachelor, but in practice only 60% of all students do that. For the teachers as a group it is difficult to find out the better ways to increase productivity of the student - major choices are made about studying, social life, job on the side there are many competing activities for time and energy, and students make a trade off by indicating their preferences. It is hard to control progress of individual student but there are ways to motivate students, we use positive incentives such as Honors program, with provides excellent stu-
The Ecunomist - Annual Volume 18, Edition 1 - November 2008
dents with assistantship. On the negative side is the BSA which was upgraded to 37.5 ECTS (5 courses) this clear distinction in the first year is better for students who were not motivated or unsure about continuing in Economics program. 30% of student deregister in the end of the year – this amount is lower compared to other economics programs in the country, and USE’s passing rates are higher than average. Studying means hard work, students need to master the theory, and be able to apply it. It takes time and energy. The best solution would be to attract high quality students who are motivated and dedicated, which will make life easier for student and teacher.” Further concern with the student life lead me to question the direction that ECU’92 is following in pursuit of their goals: “ECU’92 is a major player in student’s life at USE, but don’t you think that their focus should be tilted more towards ‘learning’ and ‘experiencing’ goals, like giving opportunities to students to understand and see more of the real-life social problems, and maybe to stimulate interest in USE students to study consistently?” “It is very important to have a student association that is involved in the daily work of the education department. Students find it easier to approach the association; this allows the faculty getting feedback on the program structure. Never the less it is an independent student body and it is up to students to determine the tasks of the students association. The problem ECU is facing is similar to that teachers are facing: a small group of students is active in the association and the task is to draw a broad group into activities. Personally I would like to have an integrated building of offices and teaching venues where interaction between students and teacher is informal and on regular bases. Spontaneous interaction results in more motivation. There are plans at the university level to build a big teaching centre in downtown Utrecht, behind Janskerkhof, by this we can have more interaction within USE – relationship development and faster growth.”
Final question to the Dean is directed towards the future developments at USE for the success of the institution, where the key players are the current students: “This year is an important year in investigating the types of profiles that USE students should have to be able to enter into labor force, and to accomplish this students and the faculty need to work together on plans to improve education achievements at USE. On average people are myopic – short sighted: students have difficulties in seeing that their results and choices in 1st year determine the future choices: being able to enter a prestigious master program, exchange program, internship. Students need to optimize their choices over long horizon, by this be and spread success. To expand USE further, promotion by trained Student Ambassadors who go back home to inform others at school or university about USE is necessary, this increases the inflow of high quality students from abroad, increases internationalization of USE. The university is doing its best to present UU as a professional and high standard university with the new website coming out in a few months, USE is going to create a clear profile of the program with the focus on interdisciplinary studies. Our best characteristic is the internationalization and interdisciplinary programs in economics – new students with different profiles are attracted to USE program. In research USE is increasing the relationship with Geosciences and Innovation departments in field of durable energy and environmental protection, to incorporate environmentaleconomics in Geography minor. These innovations in the program bring benefits to students and to USE as a teaching and research institution.” Students can meet and talk to Professor Kool at various venues that are organized ECU’92 or USE.
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Photopage Introduction Week
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The Ecunomist - Annual Volume 18, Edition 1 - November 2008
Photopage Various
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Student Abroad
“This is… Barcelona.”
Joris Hehenkamp - “Barcelona, Barcelona. This is Barcelona.”, Joris whispers to himself, wandering through the narrow alleys of the city. It still surprises him that the popular Catalan city just exists out of so much pavement. “It seems like God did not create soil here, with water, and trees, birds and flowers, and the occasional crossing of animals; he just created Barcelona.” He continues his surprised muttering. “Roughly estimated, I would say three-and-a-halve meter wide streets”, as Joris puts his arms up on his sides, as to visualize the distance properly. Suddenly Joris steps into bright sunlight again; surprising at the start of October in Utrecht, but rather common still in the North-East of Spain. An old woman with scary legs and two rather uncommon shoes, as to balance the whole fragile person, crosses him from behind and enters his personal space for a mere second. Quickly, he responds. His chin shoots up, eyes wide – neglecting the beaming sun for a bit. With his concentration heightened, he carefully scans round to find - if existing accomplices of this ever so suspicious, although a little old and not too agile, woman. He sees nothing. “But you never know, is what I learned here the first fucking minute,” and he kicks an empty bottle of water across the square to release his sudden blast of heightened awareness again. What he is referring to happened at the day of his arriving in Barcelona. After he had just climbed out of a bus packed with people and luggage, a bus that took him from the Aeropuerto de Barcelona to Placa Espana – close to the city centre – he nearly got some unwanted ‘help’ with his suitcase and three handbags (the maximum allowed by KLM – a handbag, laptopbag and a purse – although his bags where all similar, filled with shoes, books, cloths and alike). One Spanish guy comes up to him and asks him something in rapid Spanish. Joris looks at him, startled, not knowing how to respond to something he could not understand. Then the guy, in his mid-twenties, about 1.70 tall, wearing casual cloths, sneakers and dark sunglasses, skin colou-
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red by the sun throughout his life and dark, typically Spanish hair, asks “Oh, are you not from here?...”. “If he’d said anything else, practically everything else, actually,” Joris mutters in remembrance, “his bloody Spanish friends could just have swiped my baggage to Neverland before I would notice I even had baggage with me in the first place. But no, this guy asks me -a tall, blond, blue-eyed guy, with all this luggage around him and wearing way to much cloths for that time of year because Holland was a lot colder the couple or hours earlier when I got dressed and left for the airfield- whether I am not “from here”. What a fuck-in retard.” Friend or Foe? Suddenly, vividly, fortunately, Joris remembered his two friends snatching his passport at the airfield, where they had come to shake hands and say goodbye for he would not see them in person for quite some time. Using one of them as a sort of dummy, a bait, whilst the other was behind his back, untying one of his hand-suitcases and taking the precious travelling document from it. “It still amazes me that these motherfuckers used the exact same trick…” Joris continues to guide his flashes of memory with words spoken to no one, or every one, in particular, as he walks across the Placa Jaume I. “…that my friends had just unforgettably warned me about three hours earlier, in front of the customs, where I was just explaining the tall black
The Ecunomist - Annual Volume 18, Edition 1 - November 2008
Student Abroad custom guy that a passport is so incredibly old fashioned; we should just be able to trust each other a little more these days, with terrorist flying in from every non-European country. And look at me, I am clearly Dutch, now am I not?” At that same time, he was looking for his two jars of peanut butter (and re-checking for his passport) to strengthen his point – two precious 800 gram jars that did not make it to the airplane, “because peanut butter is also considered liquid, sir.”. A sly smile scars his face for a second, as he looks up into the sun and blinks heavily to choose a street in which to proceed his thoughtful crusade. “It sure was interesting and new, being hand-scanned like a zillion times, touched on every place that god has meant to be sacred – but ah, what is left of privacy these days, anyway – and having excused four thousand times for mentioning the words “terrorists” and “bomb” ánd for being a “fucking smartass Dutch bastard, if you act like this ever again than I will make sure that you not only miss your flight, but you will also spend a long flight’s time in custody, and yes, you fuckup, we can do that these days without any form of trial or evidence, just suspicion, and that is at the cost of the privacy of lowlifes like you” “So assholes that don’t even bring their passport to the godforsaken airport, the one place where you really, without exception, need it to show-it-tothe-customs”. The coloured custom guy had put force to his last words by firmly clapping his hands on the sides of Joris’ upper body to “check for potential signs of hidden weaponry”. Joris’ face frowned in concern, wraps his long arms around himself and touches the exact points of impact again, as to check they are still there.
Being badmouthed, scanned and harassed at the same time, Joris’ ‘friends’ – a phrase you might reconsider, considering this event – thought their prank had succeeded, and they threw his passport in, after which they left in a hurry and texted him half an hour later to “have a nice fucking time in Barcelona”. “What wankers, hahaha.”, and Joris’ sturdy face cracks open in a smile, a sincere and broad one this time. Caught by the sound of laughing, a mid-aged native looking guy looks up, suspecting anything and preparing for everything, and catches Joris’ large, white teeth, after which he quickly scurries off. Entering Carrer de Ferran on the left porch, pushing himself through loads of tourists, Joris finishes his flashback. “So, anyway, I came off well when I stepped back from the main hitman to discover two of his backstabbing buddies closing in on my luggage from both sides, from what was behind of me!” Shaking his head in disbelief, Joris wanders on towards the Rambla, to take a swing to the left there. On to the Portal de la Pau, where he turns right; to throw a glance or two on the beautiful sight of the Montjuic and the Barcelona harbour. A sight which he will be enjoying for four and a halve months, whilst he is exchanging his studies in Utrecht for those at the Universitat the Pompeu Fabra. Hands in his pockets, unconsciously securing his wallet and newly bought, pre-paid mobile phone, Joris sits down at one of the steps leading to the massive docking area. Listening to the water gently clutching on to the pavement, in which Barcelona seems to be covered like an ice-cream dipped in chocolate sauce, Joris softly assures himself that “This is… Barcelona.”
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Committee Page
The editorial committee Folkert van Wier - Hmm, after writing my first piece for the Eunomist as a formal member, the noble task as being the editor-in-chief is to write another article about this magazine, but now about the committee behind it, the editorial committee. As you will get to know the various members better by reading their articles, and you will do that for some time to come (round off to one year), I figured it would be wise to give you some idea what making the Ecunomist is all about. We start in chronological order. The Ecunomist has originated from the so called ‘sociologen-krant’. As the study economics has originated from minors from other academic fields combined to a full major-programme not that long ago, so has also ECU and therefore this magazine originated from those different fields (therefore the abbreviation of Economist Combination Utrecht). But of course instead of being a combination the economist now has focused only on the study economics, given at the Utrecht School of Economics. History, you can’t go without it can you? The Ecunomist as we know it today has been there for about five years or so, also continuously evolving and changing. The writing in English and the printing in colour has started somewhere around that time. The structure of the committee has always been an odd one compared to the other committees of ECU’92. In the early days the paper was basically run by only a few people doing all the work, because they enjoyed making a paper for students of economics and having a platform to publish their first amateur economic articles.
mittee consists of Loura, Arjan, Jessica, freshwomen Jennifer and Lisanne and the board-president guide Rens. Everyone can hand in an article and we ask several active members of ECU also to make a contribution. Well in advance of the printing and delivering the committee at first comes together and think of a page schedule, sometimes with a theme. We allocate the articles that we write ourselves and the responsibilities for producing the other written pieces. After all pieces are handed in, we check it, put the whole lot together with the pc and send it to the printer after we send the mailing. Come to think about it, it is a lot harder than it sounds trust me! Well I hope to have informed you a bit about the thought behind it all and if you have any critics or tips and tricks I’ll hear from you!
This year we have started working with a new structure. We first have the freelance writers Joël, Ian and Elena and the regular columnist Y.S. Brenner. The Editorial com20
The Ecunomist - Annual Volume 18, Edition 1 - November 2008
Reflection
Introduction Week '08: Reflections of a first-year student Jennifer Evans - Maybe I missed something in the registration documents (although the copies I received were in Dutch, so indeed I missed everything), but I'm convinced that Introduction Week '08 was designed specifically to mirror the first academic period at USE. But unlike the following week— where we would navigate lectures, tutorials and Bus 12—this week kicked off with skippy ball races and three-legged football. Although I think that for some of our peers, skippy ball was far worse. Imagine for a moment that you're an international student from China. You're about half the size of your strapping Dutch classmates and being told to play rugby while the student coach of the opposing team is shouting something like “cut his f*cking head off” during gameplay and flicking a cigarette. ...It's pretty much the same as the first week of mathematics. Sports Day did serve a valuable purpose however. It may be cliché, but for many of us introduction week meant leaving home for the first time, learning a new city (or country) and a transition to the “real world.” It's pretty overwhelming. During times like that, you need to knock someone off of an inflatable gauntlet to relieve some stress. Overall, introduction week was an exercise in official university procedures, social interaction, public transportation and patience. From Utrecht Centraal, we trekked to De Uithof or University College for an introduction or an ICT training or a mentor meeting. Throughout this information overload, we also had to be mindful that we were playing “games” and scoring “points”. It's pretty similar to dealing with Central Administration and the Student Desk (who tells you to just call back in a couple days) and then remembering you're in “school” and have to earn “grades.” Winners will be announced at the end of the period. Even if some of us don't want to think about it yet, while studying we also need to decide what kind of work we want to do, and who we want to do it for. In that respect, it's no surprise that USE organized a company visit during introduction week. All of a sudden those
same quiet, hesitant group mates began to argue passionately on behalf of opposition party leaders, multinational corporations and non-profit organizations that didn't even exist. Think back to it when you start your first job – the louder you were that day, the more likely it is that you ended up right back in the same group. Of course, introduction week was a great opportunity to meet fellow students as well. The English bachelor program has the added benefit of bringing in more international students. It was okay to start every conversation with “So, where are you from?” and then promptly forget 90% of your group members names. And at the café later that afternoon, it was pretty cool to have the most popular joke in Russia, Poland or Pakistan translated for you. It has to be said that the best resource we were given were our fellow students. And the team coaches were also an invaluable source of information. Team coaches were always available to offer bus routes, directions to the bank, and, when you realized the next day that Selexyz-Broese gave you the wrong reader, sympathy. By the end of introduction week, we had books, schedules (well, not quite yet), a hangover and a few more answers than we had when we started. I'm sure everyone's experiences were not the same; but whether introduction week left you feeling prepared, nervous, excited or bored, you have to admit, it was nice to see those familiar faces on Monday morning.
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Economic Business
Credit Crisis Debate Joël Kroodsma - Global stock markets indices shedding tens of percentage points in a matter of weeks. The Dutch vice Prime Minister Bos bailing-out the Netherlands’ third largest bank Fortis by purchasing €20 billion of stock. Icelandic supermarkets with empty shelves due to the collapse of the Icelandic Krone. Pakistan requesting an emergency credit from the International Monetary Fund. The industrialized world either in or heading for recession and even a serious slowdown of growth in the largest emerging market China. Recent October the 14th Utrecht School of Economics organized its first credit crisis debate. The debate was chaired by professor of Finance and USE dean prof. dr. Clemens Kool, lecturer of Finance and Tjalling Koopmans Institute researcher dr. Jaap Bos and dr. Joost Jonker, lecturer at the department of Economic History (History, faculty of Humanities) and project leader of “The Evolution of Financial Markets”. Clemens Kool initially feared the lecture hall at Drift 21 would feel for too empty. But in fact, nearly all the 200+ seats were occupied. In keeping with the profile and mission statement of USE the debate had a very multidisciplinary character. Prof. Kool gave the audience a broad-scoped overview of the causes and consequences of the recent credit market distress. Subsequently, dr. Bos demonstrated by logical analysis and Powerpoint presentation the sequence of actions leading to an overextended and overleveraged credit system, which is now on the brink of complete meltdown. Finally dr. Joost Jonker adopted the very long term view and put the current financial crisis into historical perspective. Prof. Kool placed the deregulation and financial innovation in the United States at the centre of the global financial woes. The crisis originated in the American credit market, which is the largest worldwide. Lending of the rest of the world to the U.S. resulted into global contagion, starting with the run on UK bank Northern Rock September 2007. Deregulation and innovation lead to the widespread growth of Asset Backed Securities (ABSs), the most famous of which are the so-called ‘sub prime’ mortgages. Dr. Jaap Bos showed how ABSs combined with loose-
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ned regulation and the widespread use of credit derivatives has allowed for the expansion of credit beyond any rational quantity. The resident historian dr. Joost Jonker pointed out the fact that neither financial innovation nor the crises they induce are new. However, he pointed out that comparisons with the Great Depression of the 1930’s are unwarranted. Of course there was room for input from the audience. Some wondered who bought the shaky sub primes and why no one saw the meltdown coming. Prof. Kool replied that indeed many economists had warned for the explosion of credit, but voices who “spoiled the party” where consistently ignored. On a more philosophical level, USE lecturer of Economic Methodology Piet Keizer asked whether a world without financial crises is possible, because modern society has also eradicated other economic ills like (extreme) poverty and unemployment. Prof. Kool postulated that only a credit market without (extension of) credit would be 100% crisis free. What made the rest of the world so inclined to lend money (read: to keep acquiring American assets) which now appears never to be paid back? All in all, USE first public debate turned out a very successful initiative. It is quite likely that prof. Kool and dr. Bos have never seen so many students at their regular lectures. Both Kool and Bos announced a second debate on the credit crisis if things would get ‘extremely worse’. Even though financial markets have calmed, a recession is at the door. In other words: we may see another USE debate shortly.
The Ecunomist - Annual Volume 18, Edition 1 - November 2008
Carrière Contact
Workshops Stages Business Courses Ken jij Carrière Contact? In het derde of vierde jaar van je studie wordt het tijd om een blik op de toekomst te werpen. Wat wil je ná je studie? Een mooie baan bij een interessant bedrijf is meestal wel een aantrekkelijk vooruitzicht. Hoe kom je aan die mooie baan en hoe weet je welk bedrijf bij jou past? Carrière Contact helpt jou hierbij! Als landelijke intermediair heeft Carrière Contact het doel studenten en bedrijven op een gerichte wijze met elkaar in contact te brengen. Oriëntatie op de arbeidsmarkt kan via een aantal wegen vorm krijgen. Zo is er bijvoorbeeld een scala aan oriënterende stages, business courses, inhousedagen en workshops, die door bedrijven georganiseerd worden. Om er zeker van te zijn dat je niets mist kun jij je geheel gratis inschrijven bij Carrière Contact. Aan de hand van je specifieke interesseprofiel kunnen we je dan gerichte informatie geven. Let wel; bedrijven krijgen geen inzage in je adresgegevens waardoor je privacy gewaarborgd blijft.
Daarnaast geeft Carrière Contact tweemaal per jaar het Carrière Contact magazine uit en onderhoudt zij de Carrière Contact internetsite. Deze media bieden eveneens een breed scala aan carrièregerelateerde informatie die je verder kunnen helpen bij je zoektocht naar die mooie baan bij dat interessante bedrijf. Inschrijven kan op twee manieren: Surf naar www.carrierecontact.nl of ga langs bij één van de deelnemende verenigingen. De voordelen op een rijtje: • Gerichte informatie op basis van je persoonlijke interesseprofiel; • Toegang tot bedrijfsprofielen van een groot aantal gerenommeerde bedrijven; • Toegang tot je persoonlijke gegevens op www.carrierecontact.nl; • Zorgvuldige omgang met je persoonlijke gegevens.
CarriereContact
nl
Cooking Corner
Super healthy veggie pizza Needed: ● 8 slices of puff pastry (“bladerdeeg” for the Dutch) ● 2 normal spoons of green pesto ● 125 ml crème fraîche ● 1 zucchini, in slices ● 4 tomatos, in slices ● 1 yellow paprika, vertically sliced ● 100 g grated cheese ● 1 oven ● 1 oven shelve, greased
So, let’s get started! First, preheat your oven at 225 Celcius. Put the puff pastry next to each other on the oven shelve, so that there are no gaps between the slices. The whole shelve must be covered. Make some pin holes in the dough with a fork. When the oven has the right temperature, put the dough bodom in the oven for 5 minutes. Careful! We don’t want anyone to get hurt by a hot oven. Now take the pesto and the crème fraîche and make a nice mix, and spread it out over the dough. Now arrange the vegetables on top of it, and last but not least, the grated cheese.
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Now put your very own healthy pizza in the oven for another 15 minutes. Set your table, put some candles on it or something, and you’ll find yourself in your own Italian restaurant! Bueno appetito!
Tip: If you are a carnivore, you can also put salami and ham on your pizza. In fact, you can put everything you like on it... Mushrooms, pineapple, tuna... Be creative! To make your pizza more like-pizza, instead of the 125 ml pesto-crème fraîche mix, put tomato sauce on it! Herbs that will do good on this pizza are basil and oregano.
The Ecunomist - Annual Volume 18, Edition 1 - November 2008
Committee Pages
CuColecuuu! Do you ever have this creative itch, but don’t have a clue how to handle it? Do you ever feel that Apollo himself is frowning on you because you’re as culturally active as a hamburger? And, most of all, are you completely sick of having the label “boring economist”? Then you feel the same way as a certain economics student did last year. He saw that ECU’92 had no cultural aspect whatsoever, and that this was a great flaw in the organisation. In a vibrant city such as Utrecht there is always tons going on, and a student organisation that does not exploit this is far from complete. He felt the need to get a bunch of people together and start bringing culture to the future economists of Utrecht. Hence, the Culture Committee, or more informally CuColecuuu!, was founded. It’s motto is to be creative, it’s goal to offer students of ECU’92 the possibility to actively join in cultural activities, and in doing so make entire ECU’92 a more active and culturally valid organisation. To help with the promotion of activities the Culture Comittee is the only committee to have a mascotte. He is a giant rooster with the name Cuco, and you will see him wandering around USE, randomly hugging people and trying to convince them to tap into their cultural mana and join in the upcoming activity. As a good friend to us all we are very happy to have him. Well, this year the man may have fled the challenge (he is chairman of the board right now), but the committee is far from dead. With a main target to have ECU’92 on Broadway within the next five years, it is as ambitious as ever and ready to shake the very foundations of society. In the year 2008/2009 we are hoping to put the name CuCo permanently on the map, and get a vast number of people looking forward to our activities. Through creativity and ambitious thinking we will try to achieve the goal of making ECU’92 a more fun place to be. If you feel identify with ECU’92’s newest and best committee...we can always use another member. Just come to the ECU-room at UCUU and ask someone about the culture committee, and you will find yourself welcomed by a
long-haired chairman and four of the most beautifull women you have ever seen. See you all at the next activity, Be creative!, CuColecuuuuuu!!!
Relaxcie: Always a party! Being a member of the Relacxie committee: organising parties, fun meetings, making new friends and of course always a fun ‘borrel’ to go to! This is my definition of Relaxcie. The previous month we have been working very hard for the party on October 23rd. After many phone calls with djs and locations it is all settled and we can conclude that the party was smashing! Also the more creative occupations such as the designing of the flyers and posters and spray painting the banners are fully in action. The true Relaxcie sport is of course to post the flyers in the most creative places! Another creative aspect of Relaxcie is the idea of letting a rubber boat with a banner and a boom-box roam through the canals of Utrecht. A brilliant idea but unfortunately due to time constraint we were not able to execute. Maybe an idea for our next party! Creativity is one thing we do not lack!
The Ecunomist - Annual Volume 18, Edition 1 - November 2008
All in all, being a member of Relaxcie is always a great party!
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Brenner
Reflections of a Dicraeosaurus Y.S. Benner - My neighbor wanted to know what I was able to tell him about the financial crisis. I said that I did not like it. He laughed. ‘I thought you’ll tell me that long ago you already told us it was coming.’ I grinned. ‘Indeed I did! But I didn’t want you to tell me that like all boring old men I keep on saying that I told you so.’ ‘Ah! But actually you did. I still remember from 1991 the passage in your book The Rise and Fall of Capitalism, where you wrote about the new class of persons who control enormous amounts of money that is not their own.’ I added, ‘And who were brought up to believe that there is no need for the old civilized bourgeois aspired virtues such as truth and honesty because competition and competition alone makes the world go round’. He agreed. ‘Yes, that’s what you wrote. You claimed that because the newfangled managerial elite is using other peoples money they are less diligent in how they use it, that they are more afraid of their competitors getting ahead of them than that they may drive the businesses they manage into trouble. You said that just like Soviet Communism, Capitalism was bound to get us into a morass from which it will be difficult to extricate ourselves.’ I smiled. ‘Good Lord. You actually read my book. I thought nobody did. You even
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remember what I wrote. My friend, thank you. You made my day.’ My neighbor looked pleased with himself. ‘I also read the book you wrote together with your wife in 1996. Its title, if I remember correctly, was A Theory of Full Employment. There you said that greed, when well circumscribed by legal constraints, may save the progressive economic elements of competition without its worst side-effects. So you must be satisfied with the new regulations President Bush and our Prime Minister wish to impose on speculators... ‘ I interrupted him. ‘No quotation without misrepresentation. That is not what I said. Let me get the book from my vanity book-shelve and I’ll read to you exactly what I said.’ I first went to fetch two glasses and a bottle of whiskey, and then brought the book. While he filled the glasses I searched for the page I wanted to read to him. When I found it, I read: ‘Greed, well
The Ecunomist - Annual Volume 18, Edition 1 - November 2008
Brenner circumscribed by legal constraints, may appear to be just as good a fuel to keep competition going as fear did in the past. This is an illusion!’ He looked at me: ‘So what’s the difference?’ ‘You left out the may appear, and the next sentence, where I say that it is an illusion.’ My neighbor tasted the whiskey. ‘Good stuff. I like your use of the American slogan from their struggle for liberty from England: No taxation without representation. However, I do not see why you are not happy with the measures now taken by governments to curb speculation. As long as I can remember you have always been for more state intervention and against free market economics. You were a kind of Keynesian favoring a type of regulated capitalism.’ ‘You misunderstand me. I am not against these measures. I think that they are a step in the right direction. But it is not enough. Not only speculators but the entire economic system and the culture it engenders needs to be taken on. What has made the western industrial societies rich and powerful was a culture which combined a modicum of justice with compassion, solidarity, and scientists’ pursuit of truth. But nowadays this set of values or aspired values is under attack.
Competition has taken over, and competition denuded of these values leads nowhere. At least nowhere I want to go. The newfangled Capitalism’s spirit of acquisition has seized upon all phenomena of life. It reached over into the entire cultural sphere including social relations. Business competition rules over almost all other values and imposes on society a utilitarian valuation of people, objects and events. Practically all our lives have become subordinate to profit-making. We confuse the need to compete in order to survive, with egoism and vest the latter with almost moral quality. We allow Capitalism’s modes of conduct to become habits of thought and to be regarded as ‘human nature’, which, of course, they are not.’ My neighbor clapped his hands. ‘What a sermon. You should have become a priest instead of an economist. You remind me of the veteran British left-wing socialist politician Tony Benn. When he was recently asked what was wrong with the new ideas about economic regulations, he replied: would you rather have regulated the slave trade than abolished it?’
Y.S. Brenner Bilthoven: October 2008
The Ecunomist - Annual Volume 18, Edition 1 - November 2008
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Photopage Camp in Heino
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The Ecunomist - Annual Volume 18, Edition 1 - November 2008
StarTales
Scorpio (23th October till 21th November): Your birthday is coming up! Don’t ask any clothes because they will not live up to your expectations. You have such a weird taste! Warn the neighbors because it’s time to party from dusk till dawn! Enjoy! Sagittarius(22thNovember till 20th December) Could you just put your books away for one day? You are really close to losing your friends. If you continue this nerdy behavior of yours, your only friend will be your computer, loyal like a Golden Retriever on your desk. And your partner (Oops, almost forgot!) also likes a bit of your attention. Capricorn (21th December till 19th January) Don’t you think it’s time to visit your parents? They’re the ones who made you! Well, we understand, you’re such a busy bee. Living the ultimate student life, going out, having fun, getting drunk. Watch yourself and let your mother cook you a healthy meal. Aquarius (20th January till 18th February) You finally feel like you’ve found The One Person you want to spend the rest of your life with! This person is probably Pisces, and if not: start looking for one and forget about your present boy or girl. And lately you have this strange urge to color your living room pink. But try to resist, because you will regret it afterwards! Pisces (19th February till 20th March) An Aquarius has fallen in deep, deep love with you, whether you like it or not. You can either start running or make the best out of it! Your study books are starting to experience feelings of loneliness, maybe you should start to read them or at least pretend. Aries (21th March till 20th April) You are getting a hard time at school, because you have been lazy last week. If you go to the gym you should be careful because you could hurt yourself really bad. Stay away from the rowing machine. And you should also avoid your boyfriend/girlfriend, he/she will annoy you tremendously. Taurus (21th April till 20th May) This week you are really fortunate. If you are still a single you should take your chances because the
stars are at your side. And when you are in a relationship it is time for something romantic! Cook him or her a dinner (see page 24). Try to avoid stepping in dog shit, especially on Tuesdays. Gemini (21th May till 21 June) The single Gemini’s should stop worrying so much about never getting someone to share their endless love with. Thursday 20th is your lucky day, so do something! Your fruit basket has been empty for the last six months and your body hungers for vitamins. Cancer (22th June till 22 July) You have been spending too much on alcohol and now you have a beer belly and your pocket is empty! But there is no need to despair yet, you’re doing great on the working floor and your boss loves you! Maybe you could ask him for a raise. Leo (23th July till 22th August) It is time to try something new, because you’re bored of your life right now. Maybe Salsa dancing at Olympos is a good idea? Or else you should start playing Lacrosse with the Domstad Devils? Whatever you may decide, don’t be a couch potato, or else you will start looking like one! And Leos don’t like that. Virgo (23th August till 22th September) It’s time to buy some new clothing and stop being such a money-grub. You are now one step away from looking like a homeless. Yellow is the right color to wear. And you should also clean your room, even if it’s sad for the mice that have been living there. You can expect help from an unexpected person. Libra (23th September till 22th October) You come across an old friend and it moves you more than you want to admit. Maybe it’s time to tell this person how you feel. Grab some old CDs and start listening to them again. It will remind you of the old days.
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Final Say
Egonomics Ian Koetsier - The credit crisis is at the top of all the news these days. But the question remains: who is to blame for it? The answer is the ‘brightest’ minds in the world at the top of the banking system. The ego of the ‘brightest’ minds is their weakness. They consider themselves to have no limitations in terms of knowledge, this works when the conditions are easy. However when conditions get tough, it is a different story. You could compare it with a football match between amateurs and professionals. If you use the keeper as a striker against the amateurs, he can probably manage. When conditions become tougher as in a match between professionals teams, the keeper will not be able to manage. It is the same in the financial markets. Many banks did not know the true value of their assets. However, when the markets go up, everybody can make a profit. When the markets started to fall, you get something like the last weeks. Nobody seems to know the exact value of the assets on the balance sheet and panic about the credit worthiness of banks spread across the system. The limited knowledge of banking managers became evident in these tough times. Only in these times you can tell if they understood the market during the easy times. And now it appears that most of them only thought they knew. The ego of the banking boys has grown the last couple of years. The sector was growing rapidly with at the height of the market the takeover of ABN AMRO. Just like with cars, the bigger the car the better. By the takeover of ABN AMRO an extra element came into the picture, the Fortis
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managers were mostly former second tier managers of ABN. The student has become the master, they thought. However the problem was that these managers thought they knew the market, but they did not. Now only a year later, the once beautiful company Fortis is an empty shell, stripped by the Dutch state and BNP Paribas of its best assets. Fortis was a profitable company that fell victim to the people that found themselves better than the rest. The current crisis is not the first time that the ‘brilliant’ minds were wrong. The failure of Long Term Capital Management in 1998, a company whose management consisted of Nobel prices winners, is another example. They thought to have found a way to beat the market by a mathematical model. Those people were convinced that they could do what nobody else has done. They clearly saw themselves as brilliant without limitations. But the market has its secrets. For hundreds of years, people tried to beat the market, in this period some won and some lost. The ego of those men who thought that they could beat the market where thousands of others failed must be gigantic. All first year economic students know that a model is no substitute for reality; it is subject to certain assumptions. There is only one conclusion: beware, those seemingly ‘brilliant’ people at the top are out there!
The Ecunomist - Annual Volume 18, Edition 1 - November 2008
((4 + 3)² + 4) / 1/4 = - - 11 + 6³ = - - -
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