The dash for cash
Bank funding
Europe’s troubled banks are running out of money
Two-speed Europe, or two Europes?
The future of the EU
by Charlemagne | BRUSSELS
NICOLAS Sarkozy is causing a big stir after calling on November 8th for a two-speed Europe: a “federal” core of the 17 members of the euro zone, with a looser “confederal” outer band of the ten non-euro members. He made the comments during a debate with students at the University of Strasbourg. The key passage is below (video here, starting near the 63-minute mark)
by Charlemagne | BRUSSELS
NICOLAS Sarkozy is causing a big stir after calling on November 8th for a two-speed Europe: a “federal” core of the 17 members of the euro zone, with a looser “confederal” outer band of the ten non-euro members. He made the comments during a debate with students at the University of Strasbourg. The key passage is below (video here, starting near the 63-minute mark)
Negative reaction
The euro zone crisis
by Buttonwood
IF TRADERS were planning to spend December in a drunken round of parties, they will have to think again. Yesterday saw the outline of a Merkel-Sarkozy plan to stabilise the euro, and it also saw S&P, the rating agency threatened by EU reforms, defiantly put the whole zone on negative credit watch.
The S&P move is interesting, to say the least. One could imagine two outcomes over the next few months. Option A would be a plan for the creditor nations to subsidise the latter, in which case one might expect creditor downgrades and debtor upgrades. Option B would involve a break-up of the whole region, in which case Germany and the Netherlands would keep their rating but some of the others would follow Greece into junk status.
The S&P move is interesting, to say the least. One could imagine two outcomes over the next few months. Option A would be a plan for the creditor nations to subsidise the latter, in which case one might expect creditor downgrades and debtor upgrades. Option B would involve a break-up of the whole region, in which case Germany and the Netherlands would keep their rating but some of the others would follow Greece into junk status.
The FED's Bailout of Royal Bank of Scotland
The FED's Bailout of Royal Bank of Scotland
I just viewed a BBS documentary titled "RBS — Inside the Bank That Ran Out of Money." The bank ran aground by over-expansion, especially by making a bad acquisition (ABN AMRO) that held tons of bad loans. This acquisition came 5 weeks after the head of RBS stated that he didn't foresee any acquisitions. Evidently, RBS didn't take the time to investigate what it was buying. The ambition to grow took over. But my main point here is not the downside of conglomeration and growth by acquisition, but the role of the FED when RBS failed. It loaned RBS at least $84.5 billion, more than any other foreign bank.Now, clearly, like many U.S. banks, they should have gone DOWN. Bad management should not be rewarded. The FED also bailed out U.S. banks that had been engaged in fraud or massive mismanagement and over expansion, and it bailed out AIG which I believe had written credit default swap insurance fraudulently. And it bailed out investment bankers that had purchased these swaps.
The Golden Age of Government Is Just Beginning. by Mark R. Crovelli
When I talk to self-identified "conservatives" today, I am surprised how many of them have finally awakened to the fact that governments all over the Western world are bankrupt. It has taken a long time for them to do the math, but it is finally dawning on them that when a government’s debts and liabilities massively outweigh its current and future assets and "income" (a more accurate word would be "loot"), that country is headed for disaster. While they cannot be praised for their quickness in recognizing something so blatantly obvious, at least these "conservatives" have bested their "liberal" friends in solving the problem, since most of the latter are sadly unable to add and subtract numbers with 12 zeros.
Newt Gingrich Is No Libertarian. by Murray N. Rothbard
E. J. Dionne is wrong in identifying the Republican elites, in particular the Gingrich faction, with the libertarian revolution (op-ed, Dec. 6) . The truth is that since we have been stuck with a two-party system, any electoral revolution against big government had to be expressed through a Republican victory. So it is certainly true that Newt Gingrich and his faction, as well as Robert Dole, have ridden to power on the libertarian wave.
Leo Strauss and the Conservative Movement. by Paul Gottfried
A book of mine, Leo Strauss and Conservative Movement in America: A Critical Appraisal, is about to come out with Cambridge University Press; and it has a special connection to the Mises Institute. Much of the critical thrust comes from attending conferences sponsored by the Mises Institute and from getting to know my fellow- participants and their writings. Although I harbored strong doubts about my latest subjects even before these encounters, my conversations with David Gordon, Murray Rothbard, Robert Higgs and Thomas DiLorenzo and later, discovering Mises’s comments about Strass gave additional substance to my suspicions. My project became a way of calling attention to a significant body of criticism that the liberal-neoconservative press and most scholarly organizations wouldn’t deign to present. I was upset in particular by the inability of David Gordon (and Lew Rockwell) to find a suitable publisher for a long, incisive work that David had produced about Harry Jaffa’s reading of American history. It was one of the most cerebral "value critiques" by a living thinker that I had seen.
China warns of 'severe challenges' to exports to West
Sales to Europe and the US comprise just under 40% of China's total exports, but have been falling China faces "severe challenges" to its exports due to economic difficulties in key Western markets, the country's commerce ministry has warned.
Data due to be released on Saturday will show a sharp slowdown in export growth in November, the ministry said.Russia protests: Gorbachev calls for election re-run
A rally featuring a giant toy bear - symbol of the ruling party United Russia - was held in Moscow on Wednesday
Former Soviet President Mikhail Gorbachev has said Sunday's Russian parliamentary election was marred by fraud and has called for a re-run.
Syria's Bashar al-Assad 'feels no guilt' over crackdown
Bashar al-Assad told ABC's Barbara Walters that he had given no orders for violence to be used against protesters
Syria's president has said that he feels no guilt about his crackdown on a 10-month uprising, despite reports of brutality by security forces.
In an interview with the US network ABC, Bashar al-Assad said he had given no orders for violence to be used against protesters but admitted "mistakes" were made.Mexico 'stops entry' of Libya's Saadi Gaddafi
Mexico 'stops entry' of Libya's Saadi Gaddafi
Saadi Gaddafi crossed the border into Niger in a convoy of vehicles in September The Mexican authorities say they have stopped a plot by a criminal gang organisation to smuggle one of the sons of Libya's ex-leader Col Muammar Gaddafi into the country.
Saadi Gaddafi has been under house arrest in the West African state of Niger since he fled Libya in September.Obama’s Mythical Political Skills Won’t Save Him: Ramesh Ponnuru
Last year, President Barack Obama issued a warning to Republicans. They had been “politicking” instead of “governing,” he said. “Well, we can politick for three months,” he said. “They forgot I’m pretty good at politicking.”
That was in August 2010. At the end of those three months, Republicans controlled the most seats in the U.S. House since the 1940s. Republicans did well for a lot of reasons. One of them was that the president is wrong: He isn’t all that good at politics.
That was in August 2010. At the end of those three months, Republicans controlled the most seats in the U.S. House since the 1940s. Republicans did well for a lot of reasons. One of them was that the president is wrong: He isn’t all that good at politics.
Trump, Cain Exemplify Era of Debased Debates: Margaret Carlson
The League of Women Voters quit sponsoring presidential debates during the 1988 campaign, saying the events had devolved into “charades devoid of substance.” That was more than two decades before Herman Cain, Rick Perry and Michele Bachmann took the stage, redefining “substance” and “devoid” and “charade.”
One remark you never hear this campaign season: “There just aren’t enough debates.” There have been about a dozen so far, with almost a dozen more promised by the time Florida holds its primary on Jan. 31. With news organizations tripping over one another to put on the best show, the charades have evolved into circuses, featuring bells, whistles, buzzers and visual effects to rival “Dancing With the Stars” (minus the rhinestones).
One remark you never hear this campaign season: “There just aren’t enough debates.” There have been about a dozen so far, with almost a dozen more promised by the time Florida holds its primary on Jan. 31. With news organizations tripping over one another to put on the best show, the charades have evolved into circuses, featuring bells, whistles, buzzers and visual effects to rival “Dancing With the Stars” (minus the rhinestones).
XXX-Ratings May Save Us From Financial Armageddon: William Pesek
Twelve-hour flights are a chance to catch movies you might not expect to be good entertainment -- such as “Too Big to Fail,” Hollywood’s take on the meltdown of Lehman Brothers Holdings Inc.
I watched it while flying from Tokyo to New York and kept thinking about what Lehman’s failure says about the Olympus Corp. scandal back in Japan. The off-balance-sheet risks, the tax havens, the impenetrable accounting, the smarmy and delusional executives saying all’s well, the hapless regulators.
I watched it while flying from Tokyo to New York and kept thinking about what Lehman’s failure says about the Olympus Corp. scandal back in Japan. The off-balance-sheet risks, the tax havens, the impenetrable accounting, the smarmy and delusional executives saying all’s well, the hapless regulators.
Heartbreak Awaits Republicans Who Love Gingrich: Ramesh Ponnuru
Before Republicans put Newt Gingrich at the top of their party, they should consider what happened the last time he led it.
In the mid-1990s, Gingrich was the de facto head of the Republican Party. He helped lead it to victory in the congressional elections of 1994, which brought about real accomplishments such as welfare reform. But once he attained power, both his popularity and that of his party started to plummet. In the aftermath of his leadership, a Republican was able to take the presidency only by pointedly distancing himself from Gingrich.
Conservatives who dislike George W. Bush’s compassionate conservatism have Gingrich to thank for it. After Gingrich lost the budget battles with President Bill Clinton, it took 15 years for any politician to take up the cause of limited-government conservatism that he had discredited.
In the mid-1990s, Gingrich was the de facto head of the Republican Party. He helped lead it to victory in the congressional elections of 1994, which brought about real accomplishments such as welfare reform. But once he attained power, both his popularity and that of his party started to plummet. In the aftermath of his leadership, a Republican was able to take the presidency only by pointedly distancing himself from Gingrich.
Conservatives who dislike George W. Bush’s compassionate conservatism have Gingrich to thank for it. After Gingrich lost the budget battles with President Bill Clinton, it took 15 years for any politician to take up the cause of limited-government conservatism that he had discredited.
Wal-Mart Battles With Karl Marx’s Ghost in India: William Pesek
Illustration by Sister Arrow
India (SENSEX) has a Wal-Mart problem. This may not sound remarkable, considering that China and the U.S. do as well.
China’s preference for sweatshops to supply the Arkansas- based behemoth impedes the creation of a vibrant domestic market. America’s addiction to cheap goods made in China helped kill a once-prosperous manufacturing sector.
China’s preference for sweatshops to supply the Arkansas- based behemoth impedes the creation of a vibrant domestic market. America’s addiction to cheap goods made in China helped kill a once-prosperous manufacturing sector.
Obama: Economy at ‘Make-or-Break Moment’. By Roger Runningen
President Barack Obama, setting out the themes that will carry into his re-election campaign, said growing income inequality is damaging to the U.S. economy and leaving millions of Americans feeling that “the basic bargain that made this country great has eroded.”
Obama told an audience in solidly Republican Kansas that the nation’s tax and regulatory systems must be based on “fair play.” He criticized congressional Republicans, who he said continue pushing a “brand of ‘you’re on your own’ economics” that hasn’t worked in the past and isn’t true to American values.
“This is the defining issue of our time,” Obama said in a speech at a high school in Osawatomie, Kansas. “This is a make- or-break moment for the middle class, and for all those who are fighting to get into the middle class.”
Obama told an audience in solidly Republican Kansas that the nation’s tax and regulatory systems must be based on “fair play.” He criticized congressional Republicans, who he said continue pushing a “brand of ‘you’re on your own’ economics” that hasn’t worked in the past and isn’t true to American values.
“This is the defining issue of our time,” Obama said in a speech at a high school in Osawatomie, Kansas. “This is a make- or-break moment for the middle class, and for all those who are fighting to get into the middle class.”
U.S. Stocks Decline On European Pessimism. By Nikolaj Gammeltoft
U.S. stocks fell, following a two-day advance for the Standard & Poor’s 500 Index, amid growing pessimism that European leaders will reach agreement on measures to ease the debt crisis at a summit this week.
United Technologies Corp. and Caterpillar Inc. (CAT) led losses in the Dow Jones Industrial Average, dropping more than 1.5 percent. Citigroup Inc. (C) slid 2.6 percent as Chief Executive Officer Vikram Pandit said the lender will trim 4,500 jobs. Peabody Energy Corp. fell 3.8 percent after Goldman Sachs Group Inc. (GS) cut its ratings on coal producers.
United Technologies Corp. and Caterpillar Inc. (CAT) led losses in the Dow Jones Industrial Average, dropping more than 1.5 percent. Citigroup Inc. (C) slid 2.6 percent as Chief Executive Officer Vikram Pandit said the lender will trim 4,500 jobs. Peabody Energy Corp. fell 3.8 percent after Goldman Sachs Group Inc. (GS) cut its ratings on coal producers.
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