USA Today (September 12)
“Five years ago this weekend, the world economy was in uncharted waters and sinking rapidly. The bankruptcy of Lehman Bros. on Sept. 15, 2008, touched off a horrifying financial crisis…. Far too much hasn’t been done, or hasn’t changed, since those scary days when it seemed the world financial system was unraveling.” Though the consensus in favor of urgent reform has long since faded, reform is nevertheless urgently needed. Today, “the shoring up of the financial system is no better than a work in progress, and another severe crisis in the not-too-distant future is hardly out of the question.”
Wall Street Journal (September 11)
Five years ago Lehman Brothers fell, setting off the Great Recession. Since the financial crisis, there has been no genuine attempt to remake the financial system and “far from being tamed, the financial beast has gotten its mojo back—and is winning. The people have forgotten—and are losing.”
The Economist (August 24)
Since the U.S. Federal Reserve intimated that it would begin tapering its quantitative easing program in 2013, “there has been a great sucking of funds from emerging markets. Currencies and shares have tumbled, from Brazil to Indonesia, but one country has been particularly badly hit.” India is looking less like “an economic miracle” and more like a country teetering on the verge of a full-blown crisis. “The rupee has tumbled by 13% in three months. The stockmarket is down by a quarter in dollar terms. Borrowing rates are at levels last seen after Lehman Brothers’ demise. Bank shares have sunk.”
Tags: Banks, Brazil, Crisis, Currencies, Emerging markets, Fed, India, Indonesia, Lehman Brothers, Miracle, Quantitative easing, Rupee, Shares, Stockmarket, Tapering, U.S.
The Economist (July 20)
European leaders are beginning to address the youth unemployment crisis, but the measures they are introducing “suffer from the same flaws that have plagued the European Union’s response to the crisis over the past three years: a lack of boldness, an incomplete analysis of the problem and an excessive faith in copying German policies.” With nearly 8 million European youth not in work, education or training, the problem is massive and the proposed measures “not nearly enough.”
Tags: Analysis, Boldness, Crisis, Europe, German policies. Education, Leaders, Training, Youth unemployment
Forbes (March 23)
“Forget Cyprus. A much bigger story in the coming weeks and months will be in Japan, where one of the greatest economic experiments in the modern era is about to begin. A country where government debt even dwarfs those of Europe’s crisis-ridden nations, Japan will attempt to inflate its way out of a 23-year deflationary spiral.” While the consensus seems to be that an accomodative monetary policy may jump start Japan’s economy, some fear it will instead “lead to a hyperinflationary disaster.”
The Economist (January 7)
Hopes that Bashar Assad might step aside, making room for a diplomatic solution to the crisis in Syria, evaporated after a defiant speech on January 6. The war has claimed an estimated 60,000 Syrian lives. With the opposition determined not to “negotiate a political solution to the crisis until Mr Assad is out of the picture, both sides are still trying for a military victory.” Mr Assad’s “speech provided no reason to believe the bloodshed will end soon.”
Tags: Bashar Assad, Crisis, Diplomacy, Military, Opposition, Solution, Syria
New York Times (December 7)
“The revolution in Egypt is in danger of being lost in a spasm of violence, power grabs and bad judgments…. It was Mr. Morsi’s dictatorial edict placing himself above the law last month that ignited this crisis.”
“The revolution in Egypt is in danger of being lost in a spasm of violence, power grabs and bad judgments…. It was Mr. Morsi’s dictatorial edict placing himself above the law last month that ignited this crisis.”
Tags: Crisis, Egypt, Morsi, Revolution, Violence
New York Times (November 20)
Last week, the Treasury Department decided to exempt “certain foreign exchange derivatives from rules under the Dodd-Frank reform law that are intended to reduce risk and increase transparency. The exempted derivatives—instruments known as foreign exchange swaps and forwards—represent a $4 trillion-a-day global market.” This “step back for derivatives regulation” invites new problems and could spur a future crisis.
Last week, the Treasury Department decided to exempt “certain foreign exchange derivatives from rules under the Dodd-Frank reform law that are intended to reduce risk and increase transparency. The exempted derivatives—instruments known as foreign exchange swaps and forwards—represent a $4 trillion-a-day global market.” This “step back for derivatives regulation” invites new problems and could spur a future crisis.
The Economist (November 17)
While focus may currently rest on the PIIGS, “ahead looms a bigger problem that could dwarf any of these: France…. too many of France’s firms are uncompetitive and the country’s bloated government is living beyond its means.” Without decisive action, “France will lose the faith of investors—and of Germany. As several euro-zone countries have found, sentiment in the markets can shift quickly. The crisis could hit as early as next year.”
The Economist (October 24)
There’s no end in sight to Europe’s “carmaking crisis.” Sales have fallen for 5 straight years in the EU. In September, year-on-year sales were down 11% across the EU, 18% in France, 26% in Italy and 37% in Spain. “Britain was the only significant market to enjoy a small rise.” With production capacity of 17 million cars a year, and current demand around 13 million units, “the overcapacity is glaring.”
Tags: Automakers, Cars, Crisis, EU, France, Italy, Overcapacity, Spain, UK
