Wider contagion remains greatest risk of Greek exit May 15, 2012 SOME form of Eurozone break-up seems more and more likely. Austerity can’t work without growth, of which there is no prospect for the Eurozone’s peripheral economies. With recessions set to deepen, fiscal targets will become even more difficult to achieve. It is now close to a consensus view that political deadlock in Greece will mean [...]
Is JP Morgan’s recent $2bn trading loss a reason to strengthen banking regulations? May 15, 2012 YES Tony Dolphin The $2bn (£1.24bn) trading loss at JP Morgan is bad news for its shareholders, bad news for its employees and bad news for its senior executives. But, so far, US taxpayers have not lost a cent. So why does it advance the case for tougher financial regulation? Because if this can happen [...]
RAPID RESPONSES May 15, 2012 Premier play things [Re: Do we need rules to stop football teams buying success?, yesterday] I am a Chelsea boy, so it’s no surprise that my answer is no. If a billionaire decides he wants to buy a football club, let him. If that means that the club gains an advantage, tough. Man U has [...]
Here’s the real Plan B for Britain: We need a competition revolution May 14, 2012 NO ONE can dispute that the UK economy needs more growth. It seems that the coalition’s essential austerity measures are not enough. But despite its cheerleaders, the usual Plan B, based on debt-financed infrastructure spending, won’t make any difference to growth – while denting confidence. One such plan suggested £30bn in spending. Over three years, [...]
Minimum booze prices miss benefits: Raising a glass can increase your pay May 14, 2012 THE Scottish government has confirmed that it will set a minimum price for alcohol of 50p per unit, while a 40p price is planned for England and Wales for later in the year. The basic idea is that consuming beer, wine and spirits is bad, and that basic economics can help deter it. If a [...]
Euro exits are the least bad option for the periphery May 14, 2012 MOST economists expect catastrophic consequences if any country exits the euro. Like most conventional wisdom, such a view will be contradicted not by opposing ideas but by the march of events. If the euro broke up, it wouldn’t be the first currency union to come apart. Within the past 100 years, there have been 69 [...]
Do we need rules to stop football teams like Man City from simply buying success? May 14, 2012 YES David Hellier Not before time, new rules are being introduced that should help keep Europe’s football clubs on the straight and narrow financially and prevent them, Manchester City or Chelsea-style, from buying the game’s top honours. The new rules will theoretically put an end to a period during which multi-millions have been spent buying [...]
RAPID RESPONSES May 14, 2012 Brown belt building [Re: Restrictions choke London, Friday] Tim Leunig has a balanced view of development. He recognises the role of open space, green belts and “fingers”, and transport links. But I disagree with him on the creation of new suburbs. He himself says why: Los Angeles. Do we really want urban sprawl stretching from [...]
We are in a world without leaders: The G-Zero will soon replace the G7 May 13, 2012 WHEN so many problems bestride borders, the need for international cooperation has never been greater. Cooperation demands leadership, however. Only leaders have the leverage to coordinate multinational responses to transnational problems. They have the wealth and power to persuade other governments to take actions they wouldn’t otherwise take. They pick up the bills that others [...]
A Facebook bank is far more likely than you imagine May 13, 2012 THE internet gives banks innovative ways of providing services to customers. But it also brings new dangers. Online giants like PayPal, Facebook and Amazon are leading the way on customer experience. Could they go further, and take on banks directly? Facebook has already moved into the world of “virtual currency”. Facebook Credits, costing 10 cents [...]