Other Papers
Simon James comments on UK and US deflation
August 22nd, 2011
Read more...
Simon James's December comments
May 18th, 2011
Read more ...
Possible debt default - what lies behind the fear of contagion?
April 5th, 2011
Read more ...
"For those keen to re-enter investment markets, absolute return strategies could be just what they are looking for, but it's vital to know what works and what doesn't"
Judging by the flood of absolute return products into the market recently, you would be forgiven for thinking that this is a new phenomenon or approach. In fact absolute return strategies have been around for many years.
May 27th, 2010
Read more....
It is highly unlikely that the Bank of England would raise interest rates until after QE has finished. And then only after a pause to see how money and bond markets, lending and sterling react.
August 10th, 2009
Read more ....
The debate upon banking reform in the UK has so far been woefully inadequate. The various commentators have been discussing narrow aspects of the issue, when what is required is a holistic plan. The long term outcome of reform needs to present a balance between two imperatives: on the one hand global economic and social development can benefit enormously from constructive credit provision, and this should not be thrown away; on the other hand the cost of a failed credit system is too great for us to allow it to be repeated.
August 7th, 2009
Read more ....
As expected, the G20 leaders all smiled for the cameras and said what clever folk they had been. So what did they achieve? Probably two things: first, by bolstering the IMF, they have underpinned international trade, and alleviated concerns about weaker trading partners in general, and Eastern Europe in particular; second, the psychological effect has been to boost confidence, where none previously existed, among those looking for an end to global financial travails.
Coincidentally there were some other shots in the arm. Economic statistics reported last week broadly suggested that a deceleration of the bad news is occurring. The agreement between Obama and Medvedev to restart nuclear arms reduction talks is also very positive. And in America so-called mark-to-market rules have been suspended, taking some pressure off the banks.
May 17th, 2009
Read more....
We are familiar with the normal Bank of England policy of changing interest rates, which deals with the price of money. When the price of money falls there is typically an increase in demand for it, and thus an increase in the volume of money in the economy. Unfortunately, in the current state of nervousness about financial conditions, the volume of money in the economy has been contracting, despite falling interest rates. It is hoped that "quantitative easing" might resolve this.
March 5th, 2009
Read more....
With whom does one start? Self-acclaimed "prudent" Gordon Brown is now exposed as not understanding husbandry at all. The Government finances enter recession already substantially overdrawn, without including their off balance sheet items of PFI debt and unfunded state pensions. The combination of this week’s stimulus, falling tax revenues and higher social security payments have at least caused the admission that taxes will have to rise. In the medium term, new issues of government debt will flood the market.
November 28th, 2008
Read more....
The extraordinary banking debacle may have reached its endgame. While it is difficult to feel remotely confident of this, it is positive to see globally coordinated actions rather than just words or narrow national agendas. Concerns have now moved forward inevitably to the outlook for global growth, which has been exacerbated by the paralysis of lending.
October 16th, 2008
Read more....
Banking and Credit RSS Feed