Death Star Economics



Monday, #31: social issues day

It happened. The media is calling Angela Merkel and Nicolas Sarkozy “Merkozy” now. If that’s not a societal concern, I don’t know… This week is leading up to the EU summit which is meant to solve everybody’s problems – again – on Thursday and Friday. Here some preparationread article

Commerzbank, second largest German bank by assets and partly (25%) owned by the German government since 2009, is having a bit of a stressful week. After the bank lost €687m in Q3 due to its sovereign debt exposure, it is now trying to bolster its capital to meet EU requirements. That means, it’s trying to buy back €600m worth of hybrid equities, a particular type of bond, without governmental support. read article

The German government however, doesn’t really seem to believe in this story, and is re-preparing its SoFFin (Sonderfonds Finanzstabilisierung), the special financial market stabilization fund, which provided €16.4bn to Commerzbank in 2009, and is structured like this this.

Meanwhile, and rather quietly, the Netherlands have accumulated a disgustingly high household debt of 249.3% of income (gross, both connotations), the highest in the EU. But let’s not forget that household debt is much different from sovereign debt. Especially in countries like the Netherlands or Denmark, which have low unemployment and high average and disposable incomes, household debt is not as worrisome as the number above might suggest. read article

Another world map decorated with data: the Guardian data blog does corruption (if you click on a country you get comparative past numbers). view graphic

The OECD‘s Divided We Stand income inequality report comes with a pretty videowatch video

So long.


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One Response

  1. Lashonda Bantay says:

    A social issue (also called a social ill or a social problem) is an issue that relates to society’s perception of people’s personal lives. Different societies have different perceptions and what may be normal behaviour in one society may be a significant social issue in another society. Social issues are distinguished from economic issues. ,

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