Davos,Schmavos and Abracadabra

drawing by marguerita

they are pragmatic about the need for new thinking, without conceding that past gatherings may have had some responsibility for inflating the bubble that has just burst.

So, in the newly emergent world of government intervention and its panoply of regulatory interference, is Davos Man, like the dinosaur, headed for extinction?

Or can he evolve to survive?

Niso Abuaf, a University of Chicago-trained economist and former investment banker who now teaches at New York University. “Government is intervening. It’s a crisis.”

He draws the analogy of a young child with a very high fever. Much of the medical literature says that giving that crying child an analgesic like Tylenol will only increase the recovery time. But it would be a stern parent who would not do it to mitigate the child’s suffering.

Still, Abuaf argues, the collapse of the free market model has not made the Davos conclave any less relevant, or necessary. The global economy that it championed may be broken, but that is all the more reason for this year’s annual meeting - a place for seasoned players to sift the debris, jettison the rubble and start the process of pinning together the remnants into new structures.“I wouldn’t advocate that just because we’re going through a period of crisis you should pull your horns in and not look for creative solutions,” he said.

“The critics do ask if those who have been part of the problem can be part of the solution”

Schneider noted, before providing his answer: “Yes, that’s the only way to find the solution because these are the leaders and important actors.'Davos Man' Loses His Swagger - DealBook Blog - NYTimes.com