Monthly Archives: September 2011

          The UK economy is not going to grow strongly unless and until the banks are mended. Many of our troubles today stem from the failure of regulation and bad banking in 2004-7 which got some of  the banks into an extreme financial position. This was compounded by the decision to nationalise or subsidise [...]

               The talk is once again of another round of quantitative easing. It is not being introduced immediately for two good reasons. The first is UK inflation is still high. The second is there are more sceptics second time around about how effective another dose of it might be.                 The US experience is [...]

                Growth is the key to the government’s strategy. Let’s begin with a reminder of what the government forecast in its Budget Book  in June 2010: 2010-11   1.8% 2011-12    2.4% 2012-13     2.9% 2013-14    2.8% 2014-15     2.7% Total:      13.23%          The March 2011 Budget book raised 2010-11 to 1.9%, cut 2011-12 to 1.8%, cut 2012-13 [...]

              Matthew Hancock and Nadhim Zahawi, two talented MPs elected in 2010 for the first time, have produced a thoughtful and challenging book about the banks.  They are rightly critical of the greed and rashness which drove some in the banking system in the run up to the Credit Crunch. They are especially critical [...]

              Matthew Hancock and Nadhim Zahawi, two talented MPs elected in 2010 for the first time, have produced a thoughtful and challenging book about the banks.  They are rightly critical of the greed and rashness which drove some in the banking system in the run up to the Credit Crunch. They are especially critical [...]

          It is not easy changing currencies. Some people now think that would be the least bad option for countries like Greece, facing ever worse choices on tax, spending and borrowing living with the Euro. Greece and the EU have very clearly stated they will not do this, so this is a very speculative [...]

               Yesterday was another bad day as the Euro crisis rolls on.  Italian borrowing rates rose again, despite recent strong intervention by the European Central Bank to keep these rates down.  The German Stock market, led by the banks, fell 5% .  Taxpayers in the Uk lost more money again on RBS shares.  Reports [...]