Death Star Economics



China’s new lead, Europe’s new fall, BP’s new fine

China has completed its government reshuffle and named the new members of the Politburo Standing Committee, decreasing the number of members to seven and making Xi Jinping China’s new president. He will take over from Hu Jintao in March. But hopes of a reformed and more open China in the future, were diminished by the conservative selection of PSC members. The two contesters for positions in the PSC with the strongest background in political and economic reforms, were not elected; coincidentally, two positions on the committee disappeared… read article  Bloomberg’s guide to the PSC

Meanwhile, Europe, or at least the eurozone, is officially back in recession. With both France and Germany “growing” a grand total of 0.2% in the year’s third quarter, Europe’s German engine may be heading for contraction by year-end. That’s not rock bottom of course. After all, Germany could collapse, default on its debt or implode, but it may be one of the lowest points for Europe from an economic point of view. One of them. read article

Unfortunately, the corporate world doesn’t really look any better.

BP is about the receive the largest penalty the US Department of Justice has ever filed over criminal charges for the environmental disaster triggered by the Deepwater Horizon oil spill in 2010. The fine is so large, in fact, that the number has not been disclosed yet. To date, the prize for the biggest fine goes to Pfizer, sentenced to pay $1.2bn in 2009, after illegally promoting the anti-inflammatory drug Bextra. BP put $2bn aside for legal charges; rumor has it, it will have to pay up to $1.5bn, or if you want to believe the BBC between $3bn and $5bnread article

Over at Citigroup, shareholders have submitted an official proposal for the bank’s board to consider abreakup of its retail and investment banking divisions. Citigroup’s creation in 1998 went hand-in-hand with the creation of the Glass-Steagall act, making the merging of different banking operations possible.Sandy Weill, formerly Citi’s chairman, called for a repeal of the legislation in July, fueling debates about the bank’s future. Here’s some more firewood.

So long.


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One Response

  1. princess1960 says:

    hello .
    hmmm..CHINA i am happy and sure the economy in world will change for good…if we work under the MARX ruls in economy
    BP have to pay because they destroy the enveriment .(and have to much profit too)
    GER you know we speak and write many times about this crisis in EUZ general ..THIS HAVE TO DO WITH POLITICAL INTRESES FIRS…
    ps i a extrime ehh ..iam bored too much more of you .. ..
    nice to have you here ..makari more close without glass
    this is because we are bored both.
    thank you

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