Or what’s behind Germany’s hesitant statements on Greek debt restructuring, Ireland’s move against subordinated bondholders and the ECB’s stance on interest rates
Continuing on the theme of two days ago, in today’s post I delve a little more deeply into the astonishing peculiarity of the labour contract: the contract between employer and employee. Readers who have not read the earlier post (click here) may find it hard to follow. Hope you enjoy. (The text below is based […]
Despite angry denials, the trajectory that started in Greece is heading for Madrid and carries the cumulative weight of sovereign and banking insolvency that will further immiserate Ireland.
In an earlier post I argued that we need to examine carefully how labour is turned into a ritualistic scapegoat in response to an economic crisis that has nothing whatsoever to do with high wages and over-generous conditions. Today I begin a series of posts that try to shed light on the deeper causes; on […]
In the Theatre of the Absurd the playwright utilises the bizarre, an element of surprise, copious vagueness and frequent non-sequiturs, blended in with dramatic shifts in mood and some great confrontations, in order to throw helpful light on our commonplace, ordinary lives. In contrast, Europe is writing a different script. One that I tend to […]
Crises are the opportunists’ delight. Recall how a few minutes after the second airplane struck the World Trade Centre, a New Labour spin doctor sent a memo around encouraging various government departments to bring out ‘bad news’ stories, hoping that the fallout from New York would hide them from public view long enough to defuse […]
That the Empire has struck back there is no doubt. Goldman Sachs’ Lloyd C. Blankfein just rewarded himself with $19 million bonus for 2010: the year during which he appeared in front of a Senate Committee, a court , an SEC investigation revealing in full technicolor the great variety in which GS broke the law, manipulated […]
By Yanis Varoufakis and Stuart Holland, 24th March 2011 Introduction to the new version of the Modest Proposal (to go straight to Version 2.1 of the Proposal, click here) The response to our Modest Proposal Version 2.0, of 10th March, has been overwhelming with more than 100 thousand downloads within a few days. As if […]
In yesterday’s FT, George Soros sided with two of three main policies in our Modest Proposal 2.0 and took a position largely in tune with our third policy. First, he agreed that the current euro crisis is significantly a banking crisis and, thus, adopted the policy (that the Modest Proposal 2.0 first made) that the […]
James Galbraith, in a private communication, raised a justified concern over my point that the US Treasury Secretary Tim Geithner imposed proper stress tests on the US banks in 2009 and proceeded with their recapitalisation – unlike the Europeans who are allowing Europe’s banks to be zombies for ever and ever. James told me that […]
In my last post, I compared the US and the EU approach to the post-2008 banking crisis, suggesting that Europe perpetuates the zombie state of its banks. Here are relevant extracts from Chapter 7 of my forthcoming Global Minotaur:
I think that regular readers can predict my answer. It is the one that in fact any banker would, in a fit of honesty, give you: Non-performing loans must be deleted from the banks’ books. Same with derivatives that stand no chance of finding a market/buyer. These nonperforming paper assets weigh banks down and ensure […]
Did you know that the Greek government managed, through heroic and brilliant bargaining, to extract from the latest Eurozone Summit an agreement that the Tobin tax will, at long last, see the light of day – at least in the eurozone? Well, nor did I. But apparently, this is precisely what happened, if the Greek […]
In this post I continue my Q&A with Manos Makrakis on our Modest Proposal 2.0. Tomorrow I continue with some important points raised by Jan Toporowski.
Sad news from the EU summit (that the media are presenting as yet another ‘breakthrough’): Just heard the news that our EU leaders are making progress in reaching an agreement on extending the Greek EU-IMF loan repayments by a few years and reducing the interest rates for Ireland by 1%. The possibility of allowing the […]