Next governor of the Bank must not be paid for failure July 19, 2012 IN 2008, an elderly lady asked a killer question about the credit crunch which left the so-called economic experts red-faced. During a briefing by academics at the London School of Economics on chaos in the international markets, the Queen asked: “Why did nobody notice it?” Another Old Lady – she of Threadneedle Street – had [...]
As figures reveal the UK increasingly exports outside the EU, should we abandon Europe? July 19, 2012 YES Ruth Lea The news that the UK exported more goods to non-EU countries than to EU countries in the three months to May, according to a report by the Centre for Economics and Business Research, should come as no surprise to anyone. Of course, our current trade to the EU is being dampened by [...]
RAPID RESPONSES July 19, 2012 Let Heathrow fly [Re: We need supply-side reforms not more off-balance sheet spending, yesterday] This is an excellent article. If only the government would take notice and read it. Infrastructure is vital to economic growth but, as is made clear here, experience has proven that the private sector is more capable at providing it than [...]
We need supply-side reforms not more off-balance sheet spending July 18, 2012 THE government has announced more schemes to “stimulate” investment. We can now add Credit Enhancement and Export Finance Guarantees to previous measures like Funding for Lending, Credit Easing and the National Loans Guarantee Scheme. Against the backdrop of a further growth forecast downgrade from the International Monetary Fund, the need to be seen to “do [...]
Romney needs to fight Obama’s slurs against his successful business career July 18, 2012 PRESIDENT Barack Obama’s campaign has expertly controlled the election’s narrative over the course of this week: probing Mitt Romney’s tenure at Bain Capital and his reticence to release his pre-2010 tax returns. It’s sublime politics, a tactful “devil you know” distraction from the country’s economic woes. The Democratic offensive has gone from the tenuous to [...]
Cybercrime during Olympics is a risk to home workers July 18, 2012 AS ATHLETES make their final preparations for the Olympics, tens of thousands of workers are set to work from home in a move to avoid the disruption. While undoubtedly a welcome choice for many, such flexibility is not an option for everyone. From City trading floors to local service businesses, the complexity or sensitive nature [...]
Is M&S’s decision to offer current accounts for a fee a sign that no-charge banking is dying? July 18, 2012 YES Stephen Whitehouse “Free banking” in the UK is nearing an end. Regulators view the current banking model as unfair to consumers and might well force the end of the UK phenomenon of free in-credit banking. Our research suggests that customers are willing to pay for services that add real and lasting value to their [...]
RAPID RESPONSES July 18, 2012 In praise of Mervyn [Re: Somebody needs to guard the City of London’s guardians, yesterday] To me the story comes across a little differently. The recent facts on Libor point to regulators knowing that the rate was rigged, but doing nothing – or at least nothing in a timely fashion. But Mervyn King succeeded where our [...]
Many banks are at fault – but we still need a strong finance sector July 17, 2012 OPEN almost any paper and you will read at least one editorial or comment piece slamming the financial sector. Of course, the banking industry has given its critics plenty of ammunition: HSBC failed to stop the laundering of billions of dollars of Latin American drug money; JP Morgan’s mammoth losses; the Libor scandal; mis-selling payment [...]
Ignore the IMF: Economic forecasts have a history of being unreliable July 17, 2012 THE International Monetary Fund (IMF) has slashed its growth forecasts for the UK economy. This august body has just pronounced that Britain’s economy will come to a virtual standstill. Growth in 2012 will be just 0.2 per cent, compared with the IMF’s April forecast of 0.8 per cent growth. It cut its 2013 growth forecast [...]