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What actually happened at the European summit

What actually happened at the European summit

Reading the official documents from the June 28 Summit, writes Charles Wyplosz, Professor of Geneva’s International Economics at the Graduate Institute, requires linguistic and divination skills. The texts are convoluted and clearly aim at giving various positive impressions while shying away from deep commitments. Professor Wyplosz’s conclusion is that useful progress was made, but this was far […]

The one about the Irish and the referendums......

The one about the Irish and the referendums......

Earlier this month it was announced that Irish voters would be heading to the polls to vote on the new European fiscal compact. While this was a predicted outcome as Ireland’s constitutional obligations require a referendum, the media coverage of the referendum took a tone that sounded a bit like here we go again. One […]

The American capitalist way

The American capitalist way

CEO’s earning more than their company tax bill. That reads a bit strange to me but it appears to be the American way. The nonprofit Institute for Policy Studies has just released its report “The Massive CEO Rewards for Tax Dodging” that claims that corporate tax dodging has gone so out of control that 25 […]

The fate of the Euro more influential than the Labor gov

The fate of the Euro more influential than the Labor gov

The fate of Europe’s common currency, the Euro, will have a far greater influence on Australians than how long this minority Labor Government staggers on for. The signs of another financial crisis are certainly looking ominous. Remember the assurances given by the EU and the IMF that they had resolved the problems of Greece being […]

A further hint at economic weakness

A further hint at economic weakness

When banks voluntarily start reducing interest rates we can be sure that things are slowing down in the money lending department and there have been a series of falls in fixed term mortgage rates in recent days. And now we have the Commonwealth Bank reporting that its Business Sales Indicator showed sales by businesses deteriorated […]

RBA have no reason to have been ignorant

RBA have no reason to have been ignorant

I hope that the board members of the Reserve Bank at their meeting today spent a little time reminding themselves how negligent they were over the activities of their bank note printing subsidiary. The official statement from the bank after the Federal police made its recent arrests claimed that directors from the bank were unaware […]

And financial regulators wonder why smart people don't trust them

And financial regulators wonder why smart people don't trust them

It was only back in July that the international financial regulators gave the major Irish banks the tick of approval. They were subjected to a rigorous stress test and found to have adequate capital to carry on trading. As the central bank of Ireland reported in a press statement at the time: “The results of […]

When tough law and order talk meets cutting government spending

When tough law and order talk meets cutting government spending

Election promises are cheap. It’s keeping them that gets expensive. Britain’s Conservative Party is facing up to that reality right now: the promise of being tougher on sentencing criminals is confronted with cutting the budget deficit. The London Daily Telegraph reports: Kenneth Clarke, the Justice Secretary, has been forced to abandon plans which would have […]

Those shrinking Irish bank deposits

Those shrinking Irish bank deposits

Allied Irish Banks, p.l.c. , is in the throes of raising new capital at 50 cents a share and, as the current market price is only 43.5 cents, the result will probably be that the Irish Government has to front up with the €6.6 billion being sought. That will take the Government share of ownership of […]

Sauntering towards bank collapses

Sauntering towards bank collapses

In recent days I have seen it described as a slow-motion run, a bank walk, a stroll or even a saunter. Whatever the description the final destination remains the same – a collapse of the Irish banking system that spreads out to banks in other parts of the European Union. From Jeremy Warner in Saturday […]