Lloyds Banking Group, which is 44 per cent owned by the UK taxpayer, today warned that soaring bad debt from legacy HBOS customers will contribute to a 50 per cent rise in loan book write-offs in 2009 compared to last year. … Mr Daniels pointed out that its bad debts […]
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FT.com – Longer life raises bill for taxpayers
The projected value of the state pension collapses in the face of the rising cost of public sector pensions: Billions of pounds have been added to the cost of unfunded public sector pensions as the various schemes from the NHS to civil servants, the armed forces and teachers have updated […]
Read More“The Pretence of Knowledge”: how economists come to make astrologers look good
(Update: This post is attracting significant traffic, so I have indicated three Austrian-School primers throughout the text. Please click the images for the publications.) It seems everyone is talking about swine flu and the financial crisis, but they seem to be most persistently interested in what has gone wrong with […]
Read MoreQuantitative easing explained: “Who would be a central banker at the moment?”
From the FT, Quantitative Easing Explained provides an approachable description of the process. However, Dr Anthony Evans writes: Despite the confusing terminology, quantitative easing is nothing new. It is simply an exotic label for a discredited policy. And: The amount of currency in circulation was growing at 12% in January […]
Read MoreCameron – the age of austerity
Text here.
Read MoreSatire from John Redwood MP » The Finance Director of UK PLC sends out the annual figures
I am delighted to report our most successful year ever. We made more progress to achieving our twin goals of increasing our losses and building up our levels of debt than ever before. Indeed, I am especially proud to be able to announce that in just two years we will […]
Read MoreFrom borrow and spend to an economy that saves and invests
George Osborne reacts to today’s budget:
Read MoreFT.com – Geithner admits ‘mixed’ bail-out results
Could it be that intervention is about to beget intervention? “In light of the fact that the American taxpayer has been asked to fund this extraordinary effort to stabilise the financial system, it is not unreasonable that the public be told how those funds have been used by Tarp recipients,” […]
Read MoreThe Times searches for long-term reform
The big problem, however, is that while these remedies are starting to work, they amount to a quick fix rather than a long-term cure, treating the distressing symptoms of recession rather than the underlying disease. If the treatment is more of a palliative than a panacea, then the danger is […]
Read MoreThe Credit Crunch Explained
An explanation of the financial crisis for everyone: Linda is the proprietor of a bar in Cork. In order to increase sales, she decides to allow her loyal customers – most of whom are unemployed alcoholics – to drink now but pay later. She keeps track of the drinks consumed […]
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