In The News

Grading Abenomics: It’s a C-

Edward J. Lincoln February 10, 2015
Abenomics – economic policies of quantitative easing, fiscal stimulus and structural reforms with deregulation – has been in play for two years since Shinzo Abe once again became prime minister of the world’s third largest economy. Economist and author Edward J. Lincoln suggests that Abenomics is not producing rapid improvements. Quantitative easing has shown results with modest gains in bank...

European Union Tries Rebooting the Economy

Joergen Oerstroem Moeller January 27, 2015
The European Central Bank announced dramatic expansion of its monetary stimulus plan to purchase asset-backed securities and bonds through September 2016 for a total of at least €1 trillion On the surface, the move has similarities to US stimulus measures in play since late 2008, with the US Federal Reserve purchasing billions of dollars in mortgage-backed securities, bank debt and treasury notes...

Central Bank Prophet Fears QE Warfare Pushing World Financial System Out of Control

Ambrose Evans-Pritchard January 23, 2015
To escape lingering economic malaise, the European Central Bank announced plans to engage in stimulus spending by printing euros to purchase an array of bonds – €60 billion each month at least through September 2016 for a total of at least €1 trillion. The proposal was double what analysts had expected. The rescue comes late amid currency wars and efforts by other central banks to keep bank...

Chinese Stocks Plummet 8 Percent

Scott Cendrowski January 19, 2015
Chinese regulators suspended three large brokerage firms from extending margin accounts – essentially loans – for new clients for three months, and that led the Shanghai market index to plummet by more than 7 percent, the biggest drop in six years, reports Fortune. “The regulator also punished nine different brokerages for allowing unqualified traders to open leveraged accounts, Xinhua reported,...

Grexit Grumblings: Germany Open to Possible Greek Eurozone Exit

Nikolaus Blome, Giorgos Christides, Christian Reiermann and Gregor Peter Schmitz January 6, 2015
The eurozone has economies in flux. Lithuania celebrates entry while Greece ponders an exit. Greeks vote in parliamentary elections on January 25 and many resent austerity measures imposed by Germany and other neighbors, explains an article in Spiegel Online: “the North-South conflict's focus is the German-designed austerity and reform program that all crisis countries have had to adopt in...

Europe’s Cheap Borrowing Costs Lure Corporate Fundraising

Sally Bakewell and Cordell Eddings December 30, 2014
Borrowing costs in Europe have fallen against dollar rates, to near half in some cases, and Bloomberg anticipates US firms to issue more bonds in euros. “Apple Inc. (AAPL), Verizon Communications Inc. and Albemarle Corp. led 68 billion euros ($83 billion) of bond issuance by American borrowers this year, the busiest since 2007 and 45 percent higher than 2013, according to data compiled by...

Globalization Is in Peril, Bankers Say

Peter Coy December 10, 2014
The Institute of International Finance warns about restricted flows for capital in a report "Financial Globalization: Maximizing Benefits, Containing Risks." The report analyzes “the slowdown of cross-border flows and raises concerns that while the recent regulatory agenda should help to ensure a more stable and secure financial system, the extensive benefits from cross-border flows...