November 7, 2008

Read these articles in Russian here.

Featured topics in this issue: U.S elections and the future of the financial crisis

Unprecedented Elections

In a historic victory, Barack Obama was elected 44th president of the United States. This election, however, is remarkable for many reasons. New records were set regarding campaign spending, campaign length, voter turnout, advertising, and of course the presidential candidates themselves.

Stocks, Bonds and Elections

Presidential elections always have an effect on the economy. Traditionally, the Republican Party is often depicted as the party of business and a proponent of tax cuts, while the Democratic Party is usually portrayed as the party of social spending and higher taxes.

Playing the Stock Market

The economists have discovered numerous factors that for mysterious reasons appear to have an effect on the stock market and can perhaps be used to predict its future.

Where is the Crisis Heading?

Interview with Sebastien Gay, Professor of Economics at University of Chicago: “Like in any economic cycle, the period of recession might last for three to five years. In my opinion, the recession primary started when the prices of houses went down and the first mortgages started to fall. So, I would say, we are at the middle of this crisis toward the end and we still see a lot of turbulence on the stock market; therefore, we are definitely not out of it.”

The Electoral College in a Nutshell

Although the U.S. Presidential election took place on November 4, the name of the new U.S. President will not be officially announced until the Electoral College votes are counted.

A Controversial System

In the United States there has been a long debate surrounding the Electoral College. Over the past 200 years, more than 700 proposals for Constitutional amendments have been submitted to Congress designed to reform or eliminate the Electoral College, more than on any other subject.