Britain Beats Up Its Bankers, Too

December 18, 2009

No one likes bankers these days. Last week, the British government said it will levy a 50 percent tax on bonuses paid to bankers in excess of £25,000, or about $40,700. The one-time tax is being touted as a band-aid for Britain’s budget woes. Moody’s recently warned that, if the British government doesn’t deal with its deficit problem soon, its creditworthiness will suffer “inexorable deterioration.” But the bonus tax is …

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The Bankrupt State We’re In

July 6, 2009

Generals always fight the last war, and policymakers always try to prevent the last crisis. Usually these are the wrong strategies. The failure of the private credit markets has brought the world economy to its knees. Consequently, lawmakers are scrambling to fortify us against similar disasters in the future. The problem is that the next big crisis may well come from the failure of government, not private, borrowers. The financial …

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Waiting For Life To Go On

June 22, 2009

As the winter’s meltdown recedes, financial markets have gotten over their worries about Armageddon. Now they are waiting for evidence that life really does go on. Most stock markets around the world retreated last week, many for the first time in more than a month, while commodity prices also softened. Meanwhile the dollar reversed course and strengthened moderately. Taken together, these developments point to a financial community that is in …

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