Archive for the Economy Category

The Swedish Way

President Bush’ prime time speech last night appears to have given politicians enough political cover and so word comes that the bailout plan which basically calls for a socialisation of corporate debts will move forward. Now I know something has to be done, but I seriously don’t understand why this decision is being rushed through so quickly. There are alternatives ways to possible deal with this crisis that haven’t yet been properly explored. Stopping a Financial Crisis, the Swedish Way New York Times, By CARTER DOUGHERTY Published: September 22, 2008 A banking system in crisis after the collapse of a […]

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Corporate Welfare

History will not be kind to Paulson’s bailout plan. No question, the government had to do something, but using taxpayer money to provide corporate welfare to the rich, is just downright wrong. The American people know it. The President knows it. Congress knows it. The academics know it. And oh yeah, even the bankers know it too. For those of you saying, the government did it before with the Savings and Loan scandal — well the government was obligated then because those banks actually took deposits that were federally insured. That is clearly not the case with this crisis. Thus, […]

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Lehman Brothers files for chapter 11 bankruptcy protection, yet the barons at the top still manage to safeguard bonuses for some US employees while shafting all European employees who may not even get paid at the end of the month. Just ruthless! From Times Online, September 21, 2008 Fury at $2.5bn Lehman bonus Nomura and Barclays table bids today for US giant’s London operation as bank’s administrator likens collapse to Enron John Waples and Danny Fortson STAFF at Lehman’s New York office who helped to cause the world’s biggest corporate bankruptcy are to share in a $2.5 billion bonanza. The […]

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Well, so much for companies and their executives accepting responsibility for their reckless business decisions. The US government has given in to the pleadings of Wall Street and announced a bailout plan that will cost taxpayers about $700 billion dollars and according to a New York Times article will raise the national debt ceiling to $11.3 trillion. This is just completely outrageous! And since I’m going to have to contribute to buying these toxic CDOs (yes, I still have to file and PAY taxes even though I live abroad), I can only hope that the government will buy them at […]

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The Real Winners

And now, the real winners in this financial crisis get revealed. It is the litigators. Surprise! Surprise! Not really. Of course, most of the magic circle and other top global law firms have either a contractual or simply just an unwritten rule not to sue investment banks as the fees from non-contentious work like M&A and IPO transactions are far more lucrative. However, in these new economic times, I am sure a few will break rank in the months to come. Particularly as not only will more banks start suing each other, but we’ll also see an increase in investors, […]

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