Who would want to run Fannie and Freddie? 14 Apr 2009 Talk about a thankless job. There s low pay, regulatory and legislative meddling and little scope for reform due to the focus on public policy goals. Neither US mortgage giant can currently survive as a private entity; their new bosses could be little more than custodians.
Only elections can halt Thai economy’s plunge 13 Apr 2009 Prime Minister Abhisit was installed by demonstrations that ousted his predecessor. He has now used violence to face down counterdemonstrations, but his government still lacks the legitimacy essential for economic growth. Fresh and honest elections are the only way forward
Berlusconi wisely changes tack on disaster aid 9 Apr 2009 The Italian prime minister initially turned down foreign offers of aid after the Abruzzo earthquake. Now he is accepting support for reconstructing cultural treasures. That s a prudent Uturn, both for the disaster survivors and for the wider economy.
Chávez gets China wrong by about thirty years 9 Apr 2009 In Mao s day, the Venezuelan president could have shared his revolutionary talk with comrades from Albania and North Korea. Now, Beijing s power politics is nonideological. China still likes dealing with widely shunned leaders, but only because it sees the potential for profits.
Germany tries tactical gamble in Hypo rescue bid 9 Apr 2009 The state s bid for the struggling realestate lender is priced higher than the legally prescribed minimum. But will recalcitrant shareholder JC Flowers sell out? It may not matter. The government could get enough shares to force a capital increase that squeezes Flowers out.
US trade imbalance now the least of its problems 9 Apr 2009 February s figures show the perennial US payments deficit has halved. However overall imbalances have worsened the budget deficit is larger than the trade one ever was. With GDP falling and consumption only modestly down, that puts huge pressure on investment.
Private equity can’t escape fat cat label 8 Apr 2009 The European Commission is mulling proposals to regulate alternative assets together. Private equity argues it should be treated separately, and more kindly. But the industry was happy enough to be called alternative when the going was good. It s too late to change spots.
Capital flight may try Indonesia’s resolve 8 Apr 2009 Indonesians have reasons for high spirits as they go to the ballot box on Thursday. They ve been spared their neighbours tradeinduced misery. But the risk of foreign lenders pulling out looms large. Indonesia can weather that storm, but not without some unpopular decisions.
Politics of short-selling tests US watchdog 8 Apr 2009 Lawmakers and pundits are calling for reinstatement of the uptick rule or some variant. The SEC has now floated new proposals. Its board is aware of the dangers but it caved to pressure to temporarily ban shorting last year. It needs to stiffen its resolve this time around.
US bank regulator OTS deserves dismantlement 8 Apr 2009 Financial regulators spent the years leading up to the crunch in a race to the bottom. The Office of Thrift Supervision which oversaw Countrywide, WaMu, Indymac, and AIG is the clear winner. Robert Cyran explains why closing its doors would be a good first prize.
Japan’s stimulus risks worsening its recession 7 Apr 2009 For believers in fiscal boosts, Japan is a paradox. With no bursting bubble and relatively larger stimulus plans than the US, it still has a deeper recession. It could be that public debt at 175% of GDP is suffocating private investment that might otherwise restore growth.
UK seems close to fiscal U-turn 6 Apr 2009 Only a few weeks ago Brown was telling other governments to spend more. But that was before he realised his own budget deficit would be a scary 11% of GDP. Austerity comes next. That s no fun, whether it comes as higher taxes or lower spending. Inflation may be more tempting.
G20 gives China what it wants, not what it needs 6 Apr 2009 The world's top nations have started to acknowledge Chinese policy. And China will welcome the G20sponsored boost to world trade, even if it could encourage too much reliance on exports. But the G20 made no progress on a key issue for China: unwinding the global trade imbalance.
Speculators likely to face tougher regulation 6 Apr 2009 Buried in one of the papers published as part of this month's G20 summit is a suggestion that certain investors access to credit should be more tightly controlled. That could hit hedge funds, prop traders and the next generation of oligarchs during the next upswing.
G20 learns the awful truth about tax havens 3 Apr 2009 No, it s not that these pesky principalities and primitive jurisdictions have been effective. Everyone knew that. The sad fact is that it s so easy to close these tax harbours. Just threaten to make them pariah states. So why did it take so long? And will the resolve stick?
US tax enforcers find first alleged rich villain 2 Apr 2009 A Florida yacht financier has been locked up for at least a week for allegedly using the newly forthcoming UBS to dodge his obligations to Uncle Sam. Others worried about lessthancomplete financial disclosure should be ringing their accountants phones off the hooks.
Enough already from Hank Greenberg 2 Apr 2009 He s right that AIG s leadership since 2005 and its bailout have been disastrous. But he thinks only someone as smart as him can manage the insurance empire. In reality, the best gloss is that he created a beast only he could control. He should admit that failure or keep quiet.
US should heed IMF’s toxic warning 2 Apr 2009 Dominique StraussKahn says G20 nations haven t done enough to clean up their banks balance sheets. Progress has been made in some countries. But the real weakness remains the US, which still only has half a plan. It needs to do two things to complete the job.
US Congress beats sensible bonus retreat 2 Apr 2009 Lawmakers took note of reaction to their last bill, with its 90% tax. This one tones down the righteousness, suggests relatively thoughtful guidelines and leaves implementation to the Treasury chief. Of course, if they feel he blows it the politicians will be back with a fury.
G20 deserves 7 out of 10 2 Apr 2009 The London summit hasn t solved everything. But it has made important strides in both battling the current crisis and preventing future ones. Edward Hadas and Chris Hughes grade the world s leaders on the top 10 issues.