Posts tagged banking

Worst of UK recession ‘behind us’

Article: Worst of UK recession ‘behind us’
http://news.bbc.co.uk/2/hi/business/8003626.stm

Comments: The article states that the UK may well have passed the worst times. However, the article is very short and superficial.

It does not say a word about the nature of business cycles nor about at the costs of boosting the economy. (If something like that is ever possible). (more…)

The government and Social Democrats have agreed to the anti-crisis package; even scrapping scheme to pass

Article: Vláda a ČSSD se dohodly na protikrizovém balíčku, projde i šrotovné
http://ekonomika.idnes.cz/vlada-a-cssd-se-dohodly-na-protikrizovem-balicku-projde-i-srotovne-10u-/ekonomika.asp?c=A090408_164014_ekonomika_fih
Translation: The government and Social Democrats have agreed to the anti-crisis package; even scrapping scheme to pass
What it is about: The article describes the current GDP downturn and more importantly the current Czech government crisis after PM Topolánek’s government failed to retain confidence in the House of Representatives. The two big parties (Civic and Social Democrats) have agreed to pass their respective bills through the House. These bills include:

  • progressive social security payment through abatements
  • quickening of depreciation of firms’ capital in accounting
  • novelization of insolvency law
  • scrapping bonus of 30,000 CZK per car
  • enhancing and lengthening of unemployment benefits
  • enhancing tax abatements for children
  • enhancing children benefits

Comments: One can see that the politicians have never read a single chapter in an economic book because this is so stupid that I mean it can’t be true. (more…)

OECD names and shames tax havens

Article: OECD names and shames tax havens
http://news.bbc.co.uk/2/hi/business/7980848.stm

Comments: To start with, I must say I strongly disagree with what the OECD has been doing and what — of course — the European Union is about to do as well. Naming and shaming tax havens (or tax paradises — as these nations are called in Czech) is something I still can’t believe is true. (more…)

UK economy shrinks at faster pace

Article: UK economy shrinks at faster pace
http://news.bbc.co.uk/2/hi/business/7967597.stm

Comments: The article describes the reaction of the British economy to the current economical downturn. It’s been stated that the economy shrinks faster than expected but it is also stated that the households have already reacted. (more…)

The hour of the truth for Hungary: Nation nearly going bankrupt

Article: Hodina pravdy pro Maďarsko: země se ocitla na pokraji bankrotu
http://zpravy.idnes.cz/hodina-pravdy-pro-madarsko-zeme-se-ocitla-na-pokraji-bankrotu-ptv-/kavarna.asp?c=A090317_162132_kavarna_bos
Translation: The hour of the truth for Hungary: Nation nearly going bankrupt
What it is about: Article written by a Hungarian journalist describes the situation of Hungary — a nation with great national debts and more importantly in these days — with people having great debts denominated in Swiss franc or in yen.

Comments: I found the article very interesting although it contains some economic inaccuracies (e. g. it’s not exactly stated why the wages went up when the minimum wage was set up to a new high, it is only said it happened so). (more…)

Will euro save Eastern Europe?

Article: Will euro save Eastern Europe?
http://newsvote.bbc.co.uk/2/hi/business/7932770.stm

Comments: The article is about Poland but there have been a lot of talks in the Czech Republic about this topic recently as well.

There are some missing facts in the article. First a most notable one — the eurozone is not an optimal currency zone. You can argue that no currency zone is optimal (and you would be correct) but eurozone is — I think — just the opposite of an optimal one. Remember not only prohibitions that don’t allow East-Europeans to work in the EU15 but also different cultures and languages. It would take a lot of transition cost for — say — a Slovak to come to Finland and work there. (more…)

EU calls for crisis talks over GM

Article: EU calls for crisis talks over GM
http://news.bbc.co.uk/2/hi/business/7927463.stm

Comments:
It’s always the same, no matter what. The EU knows best. The European Union knows everything, wants to legislate over everything, and wants to regulate, control and prohibit everything.

To be honest, this doesn’t surprise me anymore. With the Commission being chaired by a maoist you can expect nothing but massive regulations. (more…)

Japan exports drop 46% in January

Na předmět 2BP260 Banking and Financial Institutions máme každý týden napsat komentář k jednomu článku o ekonomice. Dovolím si dát svoje komentáře i na svůj blog. P. t. čtenář mi snad odpustí gramatické chyby i to, že se tématu držím pouze velmi volně… Případné komentátory prosím o komentáře v českém jazyce.

Article: Japan exports drop 46% in January
http://newsvote.bbc.co.uk/2/hi/business/7909248.stm

Comments: From my point of view, two basic facts are missing in the article. First, it is not stated under which exchange rate regime Japan manages the yen. So the question if the yen depreciates — which would raise the exports again — remains unanswered. As I found out, the regime is floating so I’m just wondering why there is no word whatsoever about that in the article… (more…)

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