Reports on financial crisis See all →
Planning the economy
- Political interventions rather than markets are causing economic crises in the world. Misguided attempts to centrally plan and manage the complex transactions of millions of different players are bound to produce unexpected results. In 2007-2008, politically inspired intervention in the housing market in the United States caused an international financial crisis of epic proportions. These days, policies of abundant money supply and unrestricted debt promise trouble for the developed countries.
Scenarios for Europe
Europe’s basic problem is a lack of leadership. In 2017 it is unlikely to solve the root problems at the heart of its malaise: excessive regulation, a lack of competition and innovation, weakening internal cohesion and an inability to address crises efficiently. A new generation of politicians may emerge that ...
Bad loans are not the worst threat to Italian banks
Italian banks suffer from poor management and a high ratio of nonperforming loans, but except for a handful of the most troubled institutions, their shareholders and bondholders have no reason to worry. Unless further losses emerge as a consequence of a public debt crisis, a catastrophe is not in sight.
Unrealistic expectations of growth lead to wrong decisions
Governments have been ignoring the hard economic facts of life to deliver political dreams which meet the expectations of voters. They have been living in a world of make-believe by failing to deliver the reforms which current economic positions demand but meddling with more and more government intervention. <i>Pol...
Germany emerges as power broker in Greek debt crisis
Fears that Greece’s financial problems could spill over into an international context upsetting the markets proved unfounded as European compromise provided Greece with short-term breathing space. But the Greek saga proved that Germany has the strength and power to drive European policy impacting all other EU members. <...