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The Center for Strategic Studies in Moscow was prescient in predicitng political dissatisfaction before parliamentary elections. The former finance minister, Alexei Kudrin, anticipated the 2008 global financial crisis and set aside reserves in the sovereign wealth fund to cope with the crisis. Both now see the potential for a worsening economic and political situation in Russia as Greece nears exit from the eurozone and the banking crisis in Europe leads to reduced loans to Russia. At the same time the political polarization in Russia between pro and anti Putin factions creates other tensions.
Linked Articles
Report Says Support for Putin Is Dropping
Wall Street Journal 05/23/2012
Russian Recession Could Prompt Political Woes, Report SaysNew York Times 05/24/2012
Linked Articles
Hitachi Extends Nuclear Push with $1.12 Billion U.K. Deal
Wall Street Journal 10/31/2012
Hitachi President Prods TurnaroundWall Street Journal 05/11/2012
Linked Articles
Lexus, Porsche Top Quality Survey
Wall Street Journal 02/14/2013
Chrysler Puts Laser Focus on DefectsWall Street Journal 05/09/2012
Austerity measures alone cannot address the financial problems in the eurozone countries of Greece, Ireland, Portugal, Spain and Italy. The need to create opportunities for economic growth.
Linked Articles
Election Heralds Power Shift in Alliance With Germany
Wall Street Journal 05/03/2012
France Reassures Greece on Euro Zone MembershipNew York Times 08/25/2012
A sense that austerity policies are not working because of the speed with which unemployment is rising. Improving competitiveness and structural changes needed but work gradually over time, and this is stacked up against an unemployment situation that is accelerating downward with over 5 million unemployed in April 2012.
Linked Articles
Austerity Adds to Spain's Jobless Woes
Wall Street Journal 04/29/2012
Spain, Pursuing Austerity, Still Waits for the PayoffNew York Times 04/27/2012
Power shortages continue to act as a constraint to India's growth.
Linked Articles
Scandal Spurs Indian Coal Auction
Wall Street Journal 04/24/2012
India Struggles to Dig Up Enough Fuel to Power GrowthNew York Times 04/19/2012
Problems include shortage of funds to finance imports of coal and energy and the failure to increase production at Coal India.
Linked Articles
India Mulls $10 Billion for Fund on Energy
Wall Street Journal 04/25/2012
India Struggles to Dig Up Enough Fuel to Power GrowthNew York Times 04/19/2012
Linked Articles
New York Times 04/15/2012
Europe Needs the Bond VigilantesWall Street Journal 04/05/2012
During a 6 month period between October 2011 and March 2012 the S&P 500 moves from a low of 1037 on October 27, 2011, to 1420 in March 2012. This followed another round of quantitative easing by the Federal Reserve following an earlier round in 2010.
Linked Articles
S.&P. 500 Dips After Fed Signals No New Stimulus
New York Times 04/04/2012
The Dangers of an Interventionist FedWall Street Journal 03/29/2012
The criminal investigation into alleged tax fraud in trading of carbon emissions certificates, the raid at Deutsche Bank's Frankfurt headquarters in Dec. 2012, and arrest of some senior executives, continues problems with the bank's image in Germany since the 2008 financial crisis. Deutsche Bank's was highly leveraged during the 2008 financial crisis and is perceived as contributing to the crisis. Changing the culture at the bank is likely to take more than the introduction of the new co-CEO arrangement in mid 2012 with Anshu Jain and Jurgen Fitschen, say experts. Germany's judiciary was critical of Fitschen for not respecting the independence of the judiciary and understanding the separation of powers for a call he made protesting the raid in the investigation.
Linked Articles
Image Remake Suffers Hit at Deutsche Bank
Wall Street Journal 12/20/2012
Deutsche Bank Lists Litany of Legal RisksWall Street Journal 03/21/2012
Finance Minister Luis de Guindos sees Spain loosing either way with spending cuts that worsen high unemployment and lower economic growth leading to a worsening debt to GDP ratio in 2012, and this situation in turn raising its borrowing costs on $86 billion in debt issuance for 2012. He estimates the debt to GDP ratio will increase under the 2012 budget of 27 billion euros in cuts and an economy shrinking by 1.7% in 2012, by 10% from 2011 to 78%. Markets are focussing on debt in Portugal and Spain in 2012, after focussing on Greece and Italy in 2011.
Linked Articles
Spain Faces Risks in Budget Refit
Wall Street Journal 04/03/2012
Spain Struggles to Unite Regional Leaders on CutsNew York Times 03/06/2012
China's premier Wen Biao told the National People's Congress, China's parliament, in March 2012, that it was urgent to tackel the "problem of uncoordinated, unbalanced, and unsustainable development." He called for "an acceleration of the transformation" of the economic model towards consumption and away from exports and infrastructure spending. The accelerated approval of 254 investment projects in May 2012 puts off this task of rebalancing development for China and the world economy. With slowing growth in China and the last Stimulus of 2008 having propelled the housing bubble, the options were limited. A decrease in the reserve requirement by 0.5% in 2012 for China's banks was not expected to spur growth because lending was not expected to increase, as the demand for loans is low. A sharp falloff in growth below 7% was feared leading to the acceleration in investment.
Linked Articles
China’s stimulus policy means trouble down the road - The Washington Post
Washington Post 05/31/2012
China Speeds Economic 'Transformation'Wall Street Journal 03/06/2012
The situation in Ireland is worse now than it was in 2010 after the burst of the housing bubble and the failure of its banking system.
Linked Articles
A Bedraggled 'Celtic Tiger' Struggles to Retrain Workers
Wall Street Journal 04/20/2012
Ireland becomes a test for E.U. crisis remedy - The Washington PostWashington Post 03/01/2012
Linked Articles
Telefónica's Pain Now Spreads Beyond Spain
Wall Street Journal 06/01/2012
Telefónica Profit FallsWall Street Journal 05/12/2012
The "orderly liquidation authority" of the FDIC and the U.S. Federal Reserve under the Dodd-Frank legislation provides a framework for bank resolution in the event of a crisis- something lacking in the 2008 financial crisis when Lehman Brothers collapsed. The largest finanial firms are required to write living wills so that orderly resolution can take place. Nine of the largest finacnial firms in the U.S. including Deutsche Bank, Credit Suisse and UBS, have submitted the wills to the Fed and the FDIC.
Linked Articles
Wall Street Journal 05/10/2012
Banks' 'Living Wills' UnveiledWall Street Journal 07/03/2012
Shinzo Abe of the LDP, the leading candidate for prime minister after general elections in Dec. 2012, says he will appoint a new central bank chief who supports an activist monetary policy. Abe supports the BOJ setting an inflation target of 2% compared to the 1% under current Bank of Japan chief Shirakawa. Both the governing DPJ and the LDP parties are strongly critical of Shirakawa and prefer to see an activist stance against deflation similiar to the one Ben Bernanke is taking against unemployment in the U.S. Abe returns to power after becoming LDP prime minister following the government of Junichiro Koizumi.
Linked Articles
Vote Challenges Japan's Central Bank
Wall Street Journal 12/13/2012
Pressure Rises on BOJ to Reach Inflation TargetWall Street Journal 05/07/2012
Weill pushed hard to repeal the Glass Steagall Act. He now says the housing bubble and the financial crisis have proved that this was a mistake. He called for a breakup of the biggest banks on July 23, 2012, in comments to CNBC.
Linked Articles
Big-Bank Pioneer Now Seeks Breakup
Wall Street Journal 07/25/2012
Warren Stephens: How Big Banks Threaten Our EconomyWall Street Journal 04/29/2012
Linked Articles
Wall Street Journal 04/27/2012
The Man Behind Mexico's Top CandidateWall Street Journal 04/28/2012
Linked Articles
Massive Power Outage Paralyzes North India
Wall Street Journal 07/31/2012
India Struggles to Dig Up Enough Fuel to Power GrowthNew York Times 04/19/2012
Linked Articles
An Easier Jobs Report for the Fed
Wall Street Journal 04/07/2012
Not Enough InflationNew York Times 04/05/2012
Expert opinion held that a more normalized growth environment would have to return before a recovery in the U.S. equity markets. This was expected to take a period beyond 2012-2013. The actual situation was a recovery in equity markets earlier than expected with support of $3 trillion in bond buying by the U.S. Fed, and similiar support provided in Europe by the ECB.
Linked Articles
Goldman Sachs: We Like Stocks, Just Not This Year
Wall Street Journal 04/02/2012
Lessons From the Bull MarketWall Street Journal 03/08/2014
Jared Berstein of the Economic Policy Institute, Peter Orszag, former director of the Congressional Budget Office, and Mayor Bloomberg of New York, say eliminating all Bush tax cuts would provide the revenue base needed to support middle class programs for future years. Orszag says making the tax code more progressive is desirable especially considering the inequality but this does not do much good if the revenue base to support middle class programs down the road is insufficient.
Linked Articles
Middle Class Malaise Complicates Democratsâ Fiscal Stance
New York Times 12/12/2012
Federal Budgets and Class WarfareWall Street Journal 03/29/2012
Linked Articles
Cheap Natural Gas Unplugs U.S. Nuclear-Power Revival
Wall Street Journal 03/15/2012
Shell CEO Scripts a Leading Role for GasWall Street Journal 01/16/2013
The shift in China's economy towards consumption led growth from infrastructure development led growth is likely to affect mining commodity producing economies such as Australia, Brazil and Chile. The rapid appreciation of the Australian dollar and the real is also affecting the competitiveness of manufacturing in these countries.
Linked Articles
Australia Budget Turns Boom on Its Head
Wall Street Journal 05/09/2012
China Speeds Economic 'Transformation'Wall Street Journal 03/06/2012
Trade between India and Pakistan was only $2.7 billion. This is smaller than India's trade with Sri Lanka. Michael Boskin, who was instrumental in setting up the North American Free Trade Agreement says trade models suggest that this should be around $50 billion, or 20 times larger, and would bring benefits in wages and economic conditions in the two countries.
Linked Articles
A Passage to India-Pakistan Peace
Wall Street Journal 04/16/2012
Pakistan to Ease India Trade LimitsWall Street Journal 03/01/2012
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