Eurozone crisis moves ever closer as Greek left gains ground May 24, 2012 AN ideas factory: that was the best way to describe City A.M.’s extraordinarily well-attended investment conference, held yesterday. The Eurozone was at the top of everybody’s agenda. Even before the news last night that the Greek far-left party Syriza had hit 30 per cent in the opinion polls, most of the speakers were only divided [...]
UK must lead by example and abolish stamp duty on shares May 23, 2012 WHEN in doubt, blame traders. After all, it’s easier to attack “anglo-saxon” speculators than to actually try and sort out massive government over-spending, a corporatist and uncompetitive economy, an imploding welfare state and a dodgy currency. So it should have come as no surprise that the latest assault on the City was led by Anni [...]
Free money for governments is a grave threat to investors May 22, 2012 IF you want proof that the global economy’s woes are increasing, as a result of extreme imbalances, look no further than some countries’ borrowing costs. Germany has set a zero per cent coupon on its 2-year government bonds (or Schatz) due to be sold today – in other words, borrowers will not be paid for [...]
Research that shows why lower taxes are good for growth May 21, 2012 IT is often wrongly asserted that there is no evidence that high levels of tax and public spending have a negative effect on economic growth. Whether the state spends and taxes 30 per cent of GDP or 50 per cent is irrelevant, it is argued, and should merely be seen as a question of taste. [...]
Britain must embrace 30pc tax revolution to boost growth May 20, 2012 IT is time for Britain to make a vital choice. Our economy is stagnant, with unemployment at horrendous levels, crippled by excessive public spending and a punitive tax system. There are two options. We can either tweak the status quo – try to keep a lid on spending, reform bits of the public sector and [...]
Facebook’s bubble inflates while the Eurozone’s deflates May 17, 2012 IT is truly astonishing that one of the greatest company flotations in history is taking place in the middle of one of the greatest financial crises in history. Facebook is going to market, raising $16bn and valuing the firm at a ridiculously optimistic $104bn in the biggest technology initial public offering (IPO) in history; meanwhile, [...]
Eurozone break-up will be traumatic but is now inevitable May 16, 2012 IT is good to see Sir Mervyn King and David Cameron both being a little more open about the possibility of a Greek default. We need realism, not delusion, from our central bankers and politicians; and it is looking more likely by the day that Greece will elect a rabidly anti-austerity government next month, default [...]
Government’s job is to shield UK taxpayers from Euro chaos May 15, 2012 WHEN a country’s president warns that its banks are in danger, and reveals that depositors are pulling out cash from their accounts at a record rate, it is time to dig out the tin hats and the cans of baked beans. Yet that was exactly what happened in Greece yesterday on another pivotal day for [...]
It’s austerity all right – but not of the kind we actually need May 14, 2012 IT has long been a theme of this column that the government and its critics alike have exaggerated the extent of the government’s belt-tightening. The coalition is doing this to try and reassure the bond markets while seeking to minimise the hit to the public sector; the opposition because it wants to blame the recession [...]
Grexit will happen much more quickly than politicians think May 13, 2012 CURRENCIES are social constructs. They are only worth something because everybody else believes them to be worth something. That was partly true even of traditional, commodity backed currencies – you can’t eat gold – but it is undoubtedly the case of today’s paper money. We accept notes and coins – or digital claims to them [...]