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The more things change, the more they stay the same. While European finances and economies crumble, the battle rages on between Europe and nation states. Witness this week’s Merkozy agreement (for what it is worth, I love that name!). One of the features of their pact is that there will be no eurobonds. This has… » read more

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A story on the BBC website caught my eye this morning. It seems to suggest that the prospect of a German debt devaluation is appealing to some in the German government. Close followers of the eurozone debt debacle will remember the ‘leak’ from the German team negotiating with Greece some months ago that Greece might… » read more

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The following quote is taken from the start the book, “This Time Is Different: Eight Centuries Of Financial Folly” by Reinhart and Rogoff: “The essence of the this-time-is-different syndrome is simple. It is rooted in the firmly held belief that financial crises are things that happen to other people in other countries at other times;… » read more

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The news from Ireland is that the controversial (in other Member States at least) rate of corporation tax (12.5%) will remain. The BBC reports the full story here. It seems that chasing away the corporations that have moved to the Republic to take advantage of low tax rates isn’t an option. And that makes a… » read more

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Clearly, I have no clue what I am talking about. I’m sorry for that dear reader, and sorry that one of my recent posts suggested that this recession might run and run and take well into the next decade to end. Obviously, my thinking that all this government bailout money would need to be repaid… » read more

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Today’s European Voice (11/06/09) had a story suggesting that Latvia is in for shock therapy. This did not seem to be as seriously regarded in the paper as might be justified. In 2007, Canadian journalist Naomi Klein published “The Shock Doctrine: The Rise Of Disaster Capitalism”. In this extraordinary book, Klein argues that the influence… » read more

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Whilst all these ‘stimulus plans’ may have the best of intentions and be the most plausable idea to help the economy so far, exactly who are we ‘bailing out’ and ‘stimulating’? At the core of this issue is one simple question: Since when did borrowing more money become the way to solve problems caused by… » read more

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How far down can world markets go? A little background reading about falling markets and suggests that average falls are pretty big. Of course, as we all keep reading, the current situation is ‘unprecedented’ and ‘impossible to predict’. That is all well and good, but what about previous down markets, how big were they? According… » read more

Posted by financialguy