In The News

Denying Imbalances, G20 Risks Chaos – Part II

David Dapice November 7, 2011
Once again, the leaders of the world’s most powerful economies have procrastinated in coming together on a viable global strategy to end unsustainable imbalances. Overshadowing the G20 summit was the threat of a disorderly Greek default; the Greek government’s scrambled response; and rising bond prices and trouble for Italy’s debt. Eurozone leaders agreed to set up a rescue fund of at least $1...

Denying Imbalances, G20 Risks Chaos – Part I

Shen Dingli November 4, 2011
After the Asian financial crisis in 1997-98, a group of developed and emerging economies came together as the G20 to stabilize global financial markets. With widening imbalances caused by huge trade surpluses on the part of some nations while others drown in debt, the global economy is perilously close to chaos. Now the eurozone – specifically and immediately, Greece and Italy – is in danger of...

US Banks Sell More Insurance on Europe Debt

Yalman Onaran November 3, 2011
Sales of insurance that guarantee against European debt losses are booming. A Bloomberg article questions the protection of an endless chain of hedging: “The banks say their net positions are smaller because they purchase swaps to offset ones they’re selling to other companies,” the article quotes Frederick Cannon, director of research at New York-based investment bank Keefe, Bruyette & Woods...

London Is Under Constant Attack From Europe

James Kirkup October 28, 2011
Nations will watch closely to see if Britain can distance itself from the pain of the Greek debt crisis. Great Britain is one of 27 members of the European Union, but not part of the 17-member eurozone. The British capital of London is also a global center of financial firms, which greased the way for massive debts in Greece, Italy, Spain and elsewhere. David Cameron, the British prime minister...

Look Beyond the Street

Nayan Chanda October 24, 2011
To avoid a day of reckoning, governments should heed, not mock, the complaints emerging from movements that have gained rapid global momentum, contends Nayan Chanda in his regular column for Businessworld. In 2003, protests in 60 nations opposed the impending US invasion of Iraq. The protests did not prevent the costly war, but exposed the war’s flawed rationales. This year, protesters in more...

Economic Fixes Should Not Worsen Environmental Crisis

Dodo J. Thampapillai October 19, 2011
During economic crises, political leaders often urge suspension of environmental protections to save jobs. That is a mistake, argues economist Dodo J. Thampapillai, with the Lee Kuan Yew School of Public Policy, National University of Singapore, because the economy ultimately depends on a healthy environment and sustainable use of resources. The current financial crisis presents an opportunity...

Chinese Policies Put Squeeze on the Banks

Steven M. Davidoff October 5, 2011
Whether US investment banks and private-equity firms can continue global financial domination depends on their success in Asia, particularly China, contends Steven M. Davidoff in the New York Times. Globalization was historically good for Wall Street’s financial firms, but now to prosper they must pursue business in Asia. He identifies a major shortcoming for US firms – not competing “at all for...