Euromoney (September)
“The security crisis brought on by the rise of Islamic State could turn Iran from pariah to much-needed partner to the west.” This places Iran “at a crossroads.” Will the nation chose to be “a resource-rich, rejuvenated success story, returned to the international fold and relied upon by western states as a stable force in an increasingly troubled region?” Or, instead, will it continue as “a recession-hit, bad loan-addled failure still barred from western trade and getting steadily, inexorably worse?” The view in Tehran is that it could go either way.”
Tags: Crossroads, Failure, Iran, Islamic State, Pariah, Partner, Recession, Resource-rich, Security crisis, Stable force, Tehran, Western trade
Washington Post (September 19)
The massive economic power of the Federal Reserve again moved markets this week. “This much Fed power is not in the long-term interest of the U.S. economy, nor that of the world. We say this not because the Fed’s policies under Mr. Bernanke have been wrong. To the contrary, taking interest rates to zero was aggressive but appropriate in the face of an epic recession…. Yet the Fed’s huge role represents more responsibility for the economy than a single technocratic institution — or any one fallible, unelected official, even a dedicated, talented one such as Mr. Bernanke — should bear for too long.”
Tags: Aggressive, Ben Bernanke, Bernanke, Economy, Federal Reserve, Institution, Interest rates, Power, Recession, Responsibility, U.S.
Institutional Investor (September 17)
“As the global recession and financial crisis recede in the rearview mirror, companies have been acting more proactively in using their balance sheets in ways that enhance shareholder value. But we think they can do more…. By mid-2013, U.S. companies were sitting on cash that was equivalent to about 11 percent of their total assets, a three-decade high and earning almost nothing.” Fortunately, there are signs of change. Companies “have become more receptive to using debt to buy back shares, increase dividends and make acquisitions.”
Tags: Acquisitions, Assets, Balance sheets, Buybacks, Cash, Debt, Dividends, Financial Crisis, Recession, Shareholder value, Shares, U.S.
New York Times (September 8)
“For the International Olympic Committee, environmental concerns in Japan appeared less urgent than the Syrian war on Turkey’s border, a harsh crackdown against antigovernment protesters recently in Istanbul and Spain’s economic recession and high unemployment…. Amid such economic, political and human rights maelstroms, Tokyo was seen as a calm harbor. It won handily over Istanbul in the second round of voting, 60-36, in a secret ballot of Olympic delegates.”
Tags: Environmental concerns, Human rights, IOC, Istanbul, Japan, Olympics, Recession, Spain, Syria, Tokyo, Turkey, Unemployment
Washington Post (August 2)
Washington may be badly broken, but “it works extremely well for its most important citizens: the lobbyists. The permanent government of the United States is no longer defined by party or a branch but by a profession comfortably encamped around the federal coffers. The result is that Washington has become the wealthiest city in the nation, and its relative position has actually improved over the past five years, during the worst recession in 75 years. The country might be struggling, but K Street is not.”
Tags: Country, Government, K Street, Lobbyists, Recession, Struggling, U.S., Washington, Wealth
Investment Week (May 22, 2013)
Mark Carney will soon head the Bank of England (BOE). In his last speech as Governor of the Bank of Canada, he was critical of European leaders for not doing enough to stimulate the economy, blaming Europe’s lingering recession on “fiscal austerity, low confidence and tight credit conditions” and warning against a lost decade. In contrast, Carney was highly supportive of recent monetary stimulus by the Bank of Japan. Much of Carney’s future success at the BOE will be determined by the state of the eurozone, which accounts for the majority of U.K. trade.
Tags: Bank of Canada, Bank of England, Bank of Japnan, Europe, Fiscal austerity, Japan, Mark Carney, Recession, Stimulus
New York Times (May 3, 2013)
“Despite all the questions about whether college is worth it or not, college graduates have gotten through the recession and lackluster recovery with remarkable resilience.” In fact, college graduates have gobbled up most of the new jobs. With employment rising 9.1%, college-educated workers are “the only group that has more people employed today than when the recession started.” In contrast, employment for high-school graduates has fallen by 9%.
Tags: College, Employment, Graduates, High school, Recession, Recovery
The Atlantic (April 24, 2013)
“Why has Japan’s economy been so lousy for so long? One possibility is that economic stagnation and job insecurity feed on each other—that the sorry state of workers who graduated into Japan’s recession in the early 1990s has hindered growth and, in turn, dimmed job prospects for today’s graduates. Perhaps precarious youth employment is both a symptom and an agent of economic decline.” This is a trap to be wary of as America “struggles to contain the Great Recession’s damage….We must prevent a lost generation by any means necessary. Because it’s hard to stop at just one.”
Tags: Economic decline, Employment, Japan, Job prospects, Recession, U.S.
USA Today (November 29)
As the U.S. approaches the fiscal cliff “an alarming number of people…are declaring that going over the cliff wouldn’t be so bad after all.” It would. Congress needs to reach a deal to avoid the fiscal cliff. “While spending cuts and tax hikes are needed to rein in federal deficits, having them kick in all at once would be like a drug overdose that plunges the economy into a new recession, according to the Congressional Budget Office and independent economists.”
Wall Street Journal (November 25)
At a time when Japan really needs a leader, none of the candidates for Prime Minister measure up. “As giant problems in need of urgent solutions go, Japan is a thing of beauty. Its economy contracted by 3.5% on an annual basis from July to September, and slack exports and declining industrial production suggest another recession is coming. Demographic decline is well underway and Tokyo’s fiscal position—with debt roughly twice annual output—appears ever more precarious. So it’s a shame, as the Japanese head to the polls next month, that no candidate is offering even plausible solutions.”
Tags: Demographics, Economy, Election, Exports, Japan, Prime minister, Recession
