This economist believes we shouldn’t bail out the banks: Let their lenders pay instead October 10, 2011 OVER the weekend, the nationalisation of Dexia Belgium was announced, with other parts of Dexia being broken up. On Monday, the nationalisations of a Greek bank (Proton) and a Danish bank (Max) followed. Full-blown Greek default is now imminent, the US and Eurozone economies appear to be in a soft patch, if not yet a [...]
Hong Kong has a budget surplus – the UK could too October 10, 2011 WHEN Vince Cable arrived too late to hear Hong Kong chief executive Donald Tsang speak at a special dinner in London three weeks ago, some suggested he was saving face. Indeed, where would Cable have looked while Tsang was expounding on Hong Kong’s HK$71.3bn (£5.84bn) budget surplus? How does it feel to be the representative [...]
Watch what you wish for from the QE genie October 10, 2011 I CRITICISED quantitative easing (QE) early last year on the grounds that “the conditions under which QE would be rehabilitated aren’t clear”. With the start of another round of QE in the UK this week, my fears are being realised. I can understand the objectives behind QE – that central banks have a responsibility to [...]
RAPID RESPONSES October 10, 2011 How to cut the EU The EU has an opportunity to wrong foot its detractors with its next seven-year budget, which is starting to be negotiated. The signs, however, are not good. The European Commission and Parliament have proposed increases for 2012, of 4.9 per cent and 5.2 per cent respectively. The debate needs to [...]
All three parties are failing UK business: Digby Jones lays out his policy challenge October 9, 2011 NOW that all the nonsense of party conference season is over, as Westminster heads back to work and the rest of us continue to try and earn an honest living, what did we hear from the mouths of our political masters? Did any of the three main parties show the UK business community that they [...]
If you can trust yourself when all men doubt you… October 9, 2011 WHAT constitutes a tough call? It’s got nothing to do with the scale of a decision – it can be easy enough to decide to buy or sell a company. Nor has it much to do with immediate circumstances – tough calls can crop up in good times as well as bad. No. In my [...]
A European Tobin tax won’t just hit London October 9, 2011 FOLLOWING the events of the past few months, there has never been a more important time for London’s financial services industry to build close links with Brussels. That is why I will be travelling to Canada Brussels Office’s annual reception tomorrow and why, once there, I – along with the executive director [...]
RAPID RESPONSES October 9, 2011 Missing numbers I am sure the MPC appreciates the theory of the velocity of money and the effect increasing the money supply will have. If I can, then I am sure Mervyn King does. Which begs the question, why did they launch more QE, even sooner than expected? I work in the property sector and [...]
In a chaotic world, business needs competent generals. A military expert weighs in October 6, 2011 VINCE Cable is not known for his military commentary. So when he recently declared that the economy more closely resembled warfare than any other human condition, he caught the headlines; I believe he also got it dead right. Why are we surprised by the analogy? Business and warfare are fundamentally forms of adversarial engagement, where [...]
The great green roadblock in the path of recovery October 6, 2011 DAVID Cameron wants the coalition to be the “greenest government ever”. But it is doubtful this aim is compatible with strong growth and economic recovery. New Labour’s climate change targets were very ambitious but the coalition has now gone even further. The government has committed to targets that imply in just twenty years’ time nearly [...]