Category Archives: Bailout

Help us George, just not like that!

Oh George, what are you trying to do with the housing market?  The help-to-buy scheme is 100% politics and 0% economics. It will boost house prices, as if the Bank of England wasn’t doing enough, and perhaps give a “feel … Continue reading

Posted in Bailout, Bank of England, Banking, BOE, Conservatives, Economics, London, Osborne, Politics, Quantitative Easing, UK | Tagged , , , , , | Leave a comment

UK Veto Is A Smokescreen For Much Greater EZ Failures

The headlines in the aftermath of last week’s EU summit have largely been focused on the UK veto but surely the more important issue is what Germany is unwillingly to do to save the Euro. Economists generally agree that two … Continue reading

Posted in Bailout, Bonds, Debt, ECB, Economics, Euro Zone, European Central Bank, Germany, Ireland, Merkel, Quantitative Easing, Sarkozy | Tagged , , , , , , , , | Leave a comment

Euribor Spreads Show Worrying Reminder of 2008

The spread between secured and unsecured lending in the interbank markets as measured by the spread between 3-month Euribor and 3-month Eoniaswaps has taken a dangerously similar path to before the collapse of Lehman Brothers. Figure 1: 3mth Euribor spreads … Continue reading

Posted in Bailout, Banking, ECB, Euro Zone, European banks, European Central Bank, Germany | Tagged , , , , , , , , , | Leave a comment

Politicians Owe Banks A Bailout

One concern of the bank bailouts in 2008, was that capitalism works by allowing bad businesses to fail, enabling stronger growth through competition. However, although there may have been some validity to this given banks’ exposures to risky mortgage-backed securities, … Continue reading

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The Paradox of Austerity

Martin Wolf of the Finanical Times, spoke on BBC’s Newsnight last night of the UK’s Paradox of Thrift. This was first phrased by Keynes and it basically means that when consumers decide to save money in  a recession and deleverage, … Continue reading

Posted in Austerity, Bailout, Bank of England, BOE, Cameron, Conservatives, Debt, Economics, Euro Zone, Osborne, Recession, Tax, UK, Unemployment | Tagged , , , , , , , | Leave a comment

Time To Shock And Awe Euro Zone

Congratulations to German Chancellor, Angela Merkel, for winning the vote in the Bundestag on the EUR440 billion EFSF. But, it’s not big enough. To save the Euro a “shock and awe” policy needs to be implemented to remove any doubts … Continue reading

Posted in Bailout, Banking, Bonds, Debt, ECB, Economics, Euro Zone, European Central Bank, Germany, Greece, Ireland, Merkel | Tagged , , , , , , , , | Leave a comment

Dithering Only Makes Matters Worse For EZ

Angela Merkel, Forbes’ most powerful woman in the world, is acting more like a rabbit dazzled by the headlights of the oncoming Euro Zone juggernaut as she reluctantly acts to save the Euro Zone. But dithering will get her nowhere and … Continue reading

Posted in Bailout, Bonds, Debt, Euro Zone, Germany, Merkel, Politics | Tagged , , , , , , , | Leave a comment