Economic Stimulus

Viva Espana!

The fruits of a visit to Madrid and the Bank of Spain

There are two attitudes to wrongdoing. The Jimmy Carter or the Bill Clinton. One takes on the sins of the world and the other lets even his own slip off him.

Former US president Carter, when he was a Governor of Georgia, gave a memorable interview to Playboy magazine where he admitted to sinning in his heart.

“I’ve looked on a lot of women with lust. I’ve committed adultery in my heart many times. This is something that God recognizes I will do – and I have done it – and God forgives me for it,” he said. Continue reading...

All Posts / Economic Stimulus / Financial Services / FSA / Regulation — 2 Comments
13
Oct 09

Why the regulatory burden is temporary

Sir Brian Pitman of Lloyds bets on the banks

In early 1945 Josef Stalin and President Franklin Roosevelt were discussing the future of Europe. Stalin said that Charles de Gaulle did not appear to realise that the French contribution to the Allied war effort on the Western front was minimal and that in 1940 “they didn’t fight at all.”

Meanwhile, the envoys of the US president (who had dismissed de Gaulle as a man with a Jeanne d’Arc complex), were told by the French president that, “The French have the impression that you no longer consider the grandeur of France as necessary for the world and for yourselves.” Continue reading...

All Posts / Credit Crunch / Economic Stimulus / Financial Services — Comments Off
6
Oct 09

Yin & Yang views on the global economy: Baer vs Blejer

To the BBC to talk about bankers’ bonuses. The idea of clawback provisions seems the height of imbecility to me. It is all arbitrary, all to do with where we are in the economic cycle. For instance, assuming a banker had a clawback provision for the suggested three years anytime between 2001 and the first half of 2007, he would have received it in full.

I did suggest to the interviewer that politicians should also be subject to them. She rapidly moved on, perhaps alarmed at the thought of my mentioning an incumbent prime minister or two. Continue reading...

All Posts / Credit Crunch / Economic Stimulus — 2 Comments
30
Sep 09

The long haul: investing in nuclear and agriculture

Hands up whoever groaned with envy at re-elected German Chancellor Angela Merkel’s tax-cutting agenda. The only disagreement with her new coalition partner is how deep these should be. Even to-bed-at-10pm-Frankfurt is beginning to look appealing compared to London.

Her new government also stands united on scrapping the nuclear phase-out. Nuclear energy provides around 25% of the country’s needs.

Someone else who is sighing with envy is Lady Barbara Judge, chair of the UK Atomic Energy Authority. At a Pi Capital breakfast she spoke about one of the (many) challenges facing the industry. Namely, people. With energy security and climate change driving the need for a new generation of nuclear plants, the dearth of specialised engineers and architects is a major issue. Continue reading...

Karina's Column
An inside viewpoint on international finance from Karina Robinson