Columns

Cox: When commemorating crises, think 20 not 10

15 August 2018

As the decennial anniversary of Lehman’s systemic collapse approaches, it’s worth recalling the one that preceded it. Russia’s 1998 default led to LTCM’s demise. Shockingly, that fiasco’s lessons went mostly unheeded until 2008. The key takeaway: there are always blind spots.

Hadas: Turkey shows damage of fading world order

14 August 2018

The country and its foreign creditors have had an irresponsible relationship for decades. The latest crisis is different because one-time supporters like the U.S., EU and IMF are less willing to help, and there are no credible replacements. Prepare for more currency crises.

Holding: U.S. fraud prosecutors miss more than hit

9 August 2018

A likely skewering of Trump campaign chief Paul Manafort won’t erase flubs against ex-Jefferies and Cantor traders or sharp drops in white-collar cases. Watchdogs were rightly scolded for pursuing too few financial-crisis miscreants. They haven’t yet learned their lesson.

Hadas: Higher is better for capital-gains taxes

8 August 2018

The Trump administration wants an inflation adjustment to reduce investors’ tax bills. Indexing makes sense, but the goal is wrongheaded. Lower taxes on gains don’t encourage investment. Higher rates on capital and lower ones on labor can reduce socially dangerous inequality.

Hadas: The Great Moderation is due for revival

2 August 2018

The 2008 financial crisis showed that economic cycles are still inevitable. Or did it? Duller expectations, tamer finance and stronger regulation could make periodic declines unnecessary. Sadly, it looks like at least one more downturn will be needed to get the message across.

Hadas: U.S. radicals are a fit for EU mainstream

26 July 2018

Alexandria Ocasio-Cortez is considered ultra-left wing in her home country, but the New York politician’s economic leanings are standard centrist policies in much of Europe. Americans would gain from a globalization of their debates about healthcare, jobs, housing and education.

Cox: The Agnellis will miss Marchionne most of all

25 July 2018

Tragedy and a wise call by John Elkann, the family’s then-28-year-old figurehead, put the Italian-Canadian in charge at Fiat in 2004. Marchionne, who has died at 66, turned assets worth 5.5 bln euros into nearly 60 bln. As a CEO he may be replaceable; as Elkann’s mentor he’s not.

Holding: M&A lawsuit cures could turn toxic

24 July 2018

Delaware’s efforts to cut frivolous U.S. deal litigation have pushed cases from state to federal courts, a new study shows. There, too, marginal suits that benefit only lawyers should be discouraged, but cracking down runs the risk of letting dodgy transactions off the hook.

Hadas: Global case of baby fever is easily cured

18 July 2018

From China to Hungary, governments are concocting financial incentives for women to bear more children. The efforts are doomed, because kids these days are an economic drag. Declining populations may be a problem for creditors, but they do not really threaten national prosperity.

India Insight: Mukesh Ambani goes after Jeff Bezos

16 July 2018

The energy billionaire built an upstart telecoms data network into the world’s biggest. Now Ambani wants to redefine how Indians shop, pitting him against Amazon and Walmart. India’s e-commerce market is young enough – and his pockets deep enough – for him to be a real threat.