Death Star Economics



UK vs European budget; FSB vs shadow banking

After the UK has demanded higher budget cuts in the next long-term EU budget, followed by Germany’s threat to blow off the budget negotiations altogether, planning is now going ahead without British input. The budget summit commences on Thursday in Brussels and so far there’s little confidence that Britain’s demands will be included in the proposal. David Cameron responded that an ex-UK budget wouldn’t be acceptable. Besides the Brits, Sweden is also pressing for more cuts. But they are up against policies deep-rooted in the European ethos and expenses, such as ridiculous agriculture subsidies, which France wants to leave untouched. read article

Trying to ease the tension ahead of the talks, David Cameron’s spokesperson said the British government was sure to be able to reach an agreement with the EU.

The Financial Stability Board (FSB), set up by the 20 largest economies in the wake of the financial crisis to combat evil and restore balance in the global financial system, has made some significant observations: After traditional bank lending became more and more difficult after 2008, alternative credit providers, soon called the shadow banking system, emerged just in time to be blamed for all evil in the world. Policy makers’ favorite examples of shadow banking entities are private equity and hedge funds, which are entirely different in both motivation and structure, but nonetheless equivalent in regulatory context. With the introduction of new regulation to protect the unknowing consumer, banks’ lending capacity decreased and more business gets redirected into the shadow banking system, currently worth $67tn, set to grow even further and still comparably unregulated – something the FSB wants to change asap. Now, besides this very impressive number, couldn’t we have seen that coming? read article

Møller-Maersk, the world’s leading operator of container ships, has decided to refocus away from its core business. Instead of preserving its 16% global market share, Maersk will instead invest more in oil exploration and drilling rigs, as well as ports. The shipping division Maersk Line lost $540m in 2011. read article

In other news, Gaza is heating up more and more by the minuteSpanish bad loans rose to €182.2bn, the highest level on the record, and everything about Greece is screaming Grexit once again, as Joerg Asmussen of the ECB predicts that Greece will need foreign aid beyond the current 2014 end date.

For more enjoyable lunch-food-coma-afternoon reading: a review of Nassim Taleb’s latest book, full of linguistic questions and marmite. read article

So long.


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One Response

  1. princess1960 says:

    hmmm intristing to day .
    shadow banking ..this is sad for us ..because the institutions we have (needed ) is f.up .i think notall .9i am reading Money and Power ..really this is a good side to capitalisme
    if we se the 67 t $ is one bilding ..but this is just numbers and this numbers they can ————.up to tham .(Q.when you see example in home) you dont have income ,but you have to pay diffrent obligation what you do?
    my answere is i sell everything i have and i start from grad 0
    BELIEVE ME is better than to stay and waiting what will come next (this next dot come )because noone can help.
    i know how work system bankar ..
    is stoler with out sentiment too (for this reason ) the world be come so difficulta to fix (and this is logic too) iam and am not with tham (bank)

    EUZ financial stability (HA) …
    GAZA (iam not with terroriste )
    we have one phrase (kacica xoris triha ke ura apano)
    they doesn’t have underwere and try to fait with the dragon)

    in war allway pain the unprotectet people
    this is not problem to Israel but to palestine (for me they have to stop and to try to fix him place ) .children to go in school women to work ..and finde one resolution politice in limit ISAREL give
    JUST like this we will be qiet..
    NOW about the book
    thank you i will read .
    i like my world to be like me ..
    not perfect but like me ..
    i like the world to have the problems
    i like the world to have the music
    i like the world to have a bad thing;s
    i don’t like paradisse (is bored) all the same
    i like the world (children) to live like children
    not disneyland ..(lie)
    the most perfect for tham are vacance (allway)
    are teach ..are parent..
    are friend .(not lie life)

    for sure i am ..
    thank you very much for your post
    so long or so close and we dont see.

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