Last week, Britain's Parliamentary Commission on Banking Standards issued a report that lists a number of recommendations for an overhaul of the country's banking sector. The idea is that Chancellor George Osborne includes them in his Banking Reform Bill, a preliminary draft of which was publicly criticized by the Commission in March. Whether the government will actually follow the recommendations, however, remains to be seen; PM David Cameron and his cabinet have sung their praises of the City and its
Read More...Russell Lee Family Car February 1939 "White migrant and wife repairing clutch in their car near Harlingen, Texas" Over the past two weeks or so, we've been seeing a very clear portrait of how sick our economies are. Not that you would know it from reading the press. The term deflation pops up only very cautiously. Could that be because people don't understand what's going on? Or are they simply afraid of the word? This is the real thing, guys.
Read More...Last week I read a few lines in a Dutch newspaper article about pensions that immediately took me back to something I wrote in early May about youth unemployment – especially in southern Europe, where it's often 50% or more -. There is a common thread that links pensions to employment to stimulus measures: the younger generations invariably get the short end of the stick. Until they don't, of course, for they have one thing going for them. Age. Before
Read More...Photo top: Dorothea Lange Broke, Baby Sick February 1937 "Tracy (vicinity), California. U.S. Highway 99. Missouri family of five, seven months from the drought area. Broke, baby sick, car trouble." Little by little the realization is seeping through that, provided we can agree a recovery cannot be purchased outright, there is no such thing as a recovery anywhere in the western world. Mind you, I said seeping, and I could even have said trickling; it's a slow process. And that
Read More...From yet another "gruelling" tour comes this once again highly recommended 1 hour podcast from New Zealand's GreenplanetFM radio, in which Nicole, as usual, covers a wide range of topics, with indepth analysis of issues specific to an economy like New Zealand's, a nation so dependent on trade it's dangerous, but also blessed with a ratio of resource base to population that offers possibilities many other countries do not have. For instance, New Zealand suffers from massive soil depletion because
Read More...Dorothea Lange When I was a kid 1936 "American River camp near Sacramento, California. Children of destitute family. Five children aged two to seventeen." Amid all the superficial up and down rumblings of stocks and bonds, and hyped up analysis thereof, none of which makes you any wiser (hey, I told you Abenomics can't work..), it's a good idea to look at some of the more profound workings of the financial system. I saw an interesting take on an angle
Read More...It's sort of funny to see a wider – though still faint – recognition developing in the financial world that perhaps it's true that the more stimulus is applied in today's global economies, the faster it will hit a wall. Some may finally even begin to see one or more inbuilt mechanisms at work. I personally think it all harks back to what I've long said, that stimulus by governments and central banks may have a function in certain economic
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