Government must stop meddling and leave pay decisions to shareholders June 19, 2012 DEMANDS for government intervention to limit executive pay are misguided. As the WPP vote against Sir Martin Sorrell’s pay and other AGMs this spring showed, shareholders can act – corporate governance is their responsibility. The only way that governments can improve corporate governance is by removing obstacles to shareholder action. Government regulation of corporate governance [...]
Just 42 per cent of Greek people are for austerity June 19, 2012 VICTORY for the centre-right New Democracy party in Greece’s election has been widely hailed as a victory for pro-bailout and pro-austerity forces. However, the fine print tells a different story. Even though a broadly pro-bailout government is now likely, a renegotiation of the bailout terms is almost inevitable given austerity fatigue. Only 42 per cent [...]
Is Microsoft likely to find success with the launch of the Surface Windows 8 tablet? June 19, 2012 YES Steve Dinneen Can Microsoft’s new tablet beat the iPad? No. Apple’s category- defining product had a US tablet market share of around 73 per cent last year and it shows no sign of slowing. But Microsoft’s offering can still be a success – the market for tablets is growing exponentially (by 91.7 per cent [...]
RAPID responses June 19, 2012 Marital business [Re: Selling off unproductive assets is liberating music to a capitalist’s ears, yesterday] Anthony Evans says he has merged his CD collection with his wife’s, and she has made unofficial assurances that the new entity now belongs to him. I’m afraid his wife now sees the entire collection as a problem. After a [...]
Reflections on the causes of crises from one of America’s top bankers June 18, 2012 PUBLIC policy decisions are being made based on a myth. The misunderstanding driving this myth is that deregulation of the financial industry in the US, combined with greed in financial markets, caused the financial crisis and the continuing recession. And the root of this economic misconception is philosophical. In fact, the crisis and recession are [...]
Selling off unproductive assets is liberating music to a capitalist’s ears June 18, 2012 AFTER close to six years of marriage, my wife and I have finally merged our CD collections. As we don’t own a CD player, we realised that we didn’t need two copies of many albums we both own. Plus, she assured me that, if we get divorced, I would get to keep them anyway. I [...]
Greece’s election will only forestall eventual tragedy June 18, 2012 MANY people are asking what the Greek election result represents: a turning point? The end to questions over Greek membership of the euro? A light at the end of the tunnel? Unfortunately, none of the above. The result of the Greek election, although broadly viewed as the best possible outcome, does not fit any of [...]
Will Socialist victory in the French legislative elections lead to effective economic reform? June 18, 2012 YES Emma Reynolds On Sunday, French voters gave Francois Hollande an outright majority in the national assembly. The French President has already changed the dynamic in Europe, away from an exclusive focus on austerity, towards a commitment to create jobs and growth. Hollande’s success was based, in part, on the fact that he offered a [...]
RAPID RESPONSES June 18, 2012 Grexit postponed [Re: Greece jumps out of the fire and straight into the frying pan, yesterday] Many of the reform measures in the Memorandum of Understanding haven’t been implemented and never will be. Part of Greece’s debt could be paid off by privatising the power utility, the two major ports and the railways. Unions, however, [...]
Cheap government credit isn’t the magic bullet for our future growth June 17, 2012 SOMETIMES life sucks. Sometimes, one day we are active athletic people, running and playing squash, and the next we experience a bad back injury and cannot run fast or twist any more. When such things happen, it is tempting to believe that there must be a solution, some magic bullet that will restore us quickly [...]