In The News

Italy Has New Government: ANSA

August 29, 2019
Italy has formed a new government under Premier-designate Giuseppe Conte nine days after he resigned. The new coalition of the anti-establishment 5-Star Movement and the center-left Democratic Party is less hostile to the European Union than the previous coalition that included the far-right Nationalist League. The 5-Star Movement led all parties in the 2018 legislative election, with more than...

Microloan Problems in Cambodia: Spiegel

Vanessa Steinmetz August 19, 2019
Even small amounts of debt can contribute to lasting trouble for those living in developing nations. Vanessa Steinmetz describes the plight of a cassava farmer and father of five in Cambodia who struggles to repay a bank microloan of $3250 just before the prices of that commodity fell. He had placed a hectare of his farm as collateral, before selling other land at a loss and taking out another...

The US Deficit Economy: Project Syndicate

Joseph E. Stiglitz August 12, 2019
The Trump administration is delivering shocks to the economy before experts can assess the consequences, suggests economist Joseph Stiglitz. All that is sure about the US economy is volatility and uncertainty. Reductions in the interest rate by the US Federal Reserve as central bank have little effect. “Long ago, John Maynard Keynes recognized that while a sudden tightening of monetary policy,...

Korea to Ban Stock Short-Selling: Korea Herald

Park Ga-young August 7, 2019
Stock exchanges of many nations imposed various bans on short-selling during and after the 2008-2009 global debt crisis. Investors expecting a stock to decline borrow shares – as a hedging strategy or speculation – and then resell these to buyers who pay the market price: Further decline results in profits for the first investor while a rise can result in huge losses, explains Investopedia. South...

“Hidden” Debt and Trouble for Global Economy: CNBC

Yen Nee Lee July 31, 2019
Investors are alert to any signs of a global recession and decline in economic growth. A research and analytics unit under S&P Global suggests that companies that have skipped the crediting rating process in taking on debt could be signaling signs of troubles. Credit ratings provide an independent assessment on the ability to repay debt, and low interest rates and attempts by central banks to...

World's Bond Markets: Bloomberg

John Ainger July 15, 2019
Bonds are generally considered safe investments, and demand pushes yields down. Confronting low wages and low inflation, central banks struggle to raise interest rates. The number of negative-yield bonds is growing: These are worth less than the principal invested when held to maturity. Governments may take on excessive debt as bond issuers essentially charge investors for holding their money....

Facebook’s Libra: Project Syndicate

Katharina Pistor June 24, 2019
Corporations are increasingly eager to resume control over traditional government responsibilities. The latest example: Facebook released a white paper on plans to develop a borderless cryptocurrency system with a group of central banks, regulators and 27 partner companies. Facebook along with Uber, Lyft, Visa, PayPal, Mastercard, eBay, and other firms – but not commercial banks – are...