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Gene Ellis

With Restructuring Done, EADS Faces New Challenges - NYTimes.com - 0 views

www.nytimes.com/...eads-faces-new-challenges.html

shared by Gene Ellis on 29 Mar 13 - No Cached
  • One of the big arguments being made by the economic ministry is, ‘We give you lots of defense business, so you have got to provide a lot of high-tech jobs in Germany.’
  • EADS’s future in the United States, meanwhile, poses different challenges.
  • Those attempts have included an ultimately unsuccessful bid for a $35 billion aerial refueling tanker contract with the U.S. Air Force as well as the failed attempt last year to merge with BAE, one of the Pentagon’s top 10 contractors.
  • ...2 more annotations...
  • But with major U.S. players like Lockheed Martin and Northrop Grumman almost certainly out of reach for national security reasons,
  • “I have no illusions about how difficult it is to sell non-American products on the American market,” Mr. Enders said. “We should not even dream about trying to sell a product to a U.S. defense customer if it is not really superior to what our American peers are offering.” Analysts tended to agree.
Gene Ellis

Cyprus adds to Europe's confusion - FT.com - 0 views

www.ft.com/...4a-11e2-a4fa-00144feabdc0.html

shared by Gene Ellis on 29 Mar 13 - No Cached
  • First, the eurozone does indeed have the capacity to do the right thing in the end, though not before first exhausting all the alternatives.
  • It protects the small deposits and imposes a rational resolution process.
  • Second, a euro is indeed not a euro everywhere.
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  • A consensus on the principle that creditors, not taxpayers, should pay if a bank becomes insolvent does not yet exist across the eurozone. Does anybody imagine the German government would not rescue Deutsche Bank if it were in trouble? Of course it would.
  • The outcome in Cyprus underlines the fact that the value of a euro of bank liabilities depends on the solvency of the bank itself and the solvency of the government standing behind the bank. If both bank and state are insolvent, lenders are likely not only to lose a big proportion of their money outright, but to find that the rest is frozen behind controls,
  • Yet, as Guntram Wolff of Bruegel notes, a currency union with internal exchange controls is a contradiction in terms. Only the willingness of the European Central Bank to finance Cypriot banks without limit could end these controls in the near future. Will it be willing to act soon?
  • The ideal conclusion from the Cypriot imbroglio would be that all eurozone banks should have more capital.
  • A final lesson of this crisis is that what I have called the “bad marriage” that binds the eurozone members together has become worse.
  • Thus the eurozone limps on through crisis after crisis. Can – or will – this continue indefinitely? I do not know.
Gene Ellis

Kerry promotes U.S.-European trade deal - The Washington Post - 0 views

www.washingtonpost.com/...2-814b-063623d80a60_story.html

shared by Gene Ellis on 27 Mar 13 - No Cached
  • France wants to slow down consideration of the proposed transatlantic free-trade zone encompassing about 40 percent of the world’s trade. Germany and Britain are in favor of the plan and want to move fast.
  • The Obama administration says a comprehensive deal would further open European markets and expand exports to the euro zone of U.S. goods and services, currently worth $459 billion a year. Backers say the deal would add more than 13 million jobs in the United States and Europe.
  • But supporters also fear that trade talks will bog down or collapse over parochial concerns, and must be streamlined to succeed.
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  • one of the objections that France is expected to raise over what it calls cultural exceptions to free trade on products with a specific geographic or national significance, such as Champagne wine.
Gene Ellis

Financial Crisis Far From Over, Says Outgoing Bank of England Chief - 0 views

hereisthecity.com/...s-outgoing-bank-of-england-chi

undefined financial crisis crisis far says bank england chief

shared by Gene Ellis on 26 Mar 13 - No Cached
  • He said that while the eurozone works for some countries, it was obvious that others were unable to keep up. "There is a basic question: what is the right size for a single monetary policy?" In a clear reference to Greece, Portugal and Cyprus, he said the crisis had exposed countries with weaker productivity and higher labour costs.
  • Blanchard said the powers acquired by central banks created a "democratic deficit" that could eventually lead to social unrest. The situation in Europe was a cause for concern, especially when central banks were put in a position of making crucial decisions that affected millions of people's lives, he said.
Gene Ellis

Willem Buiter On The Economic Prospects For The Eurozone - 0 views

www.social-europe.eu/...mic-prospects-for-the-eurozone

shared by Gene Ellis on 26 Mar 13 - No Cached
  • Gene Ellis on 26 Mar 13
     
    Superb, densely packed, talk by Willem Buiter at the Council for Foreign Relations, Late March, 2013
Gene Ellis

Hot Money Blues - NYTimes.com - 0 views

www.nytimes.com/...krugman-hot-money-blues.html

shared by Gene Ellis on 25 Mar 13 - No Cached
  • for the time being, and probably for years to come, the island nation will have to maintain fairly draconian controls on the movement of capital in and out of the country.
  • It will mark the end of an era for Cyprus, which has in effect spent the past decade advertising itself as a place where wealthy individuals who want to avoid taxes and scrutiny can safely park their money, no questions asked.
  • To some extent this reflected the fact that capital controls have potential costs: they impose extra burdens of paperwork, they make business operations more difficult, and conventional economic analysis says that they should have a negative impact on growth (although this effect is hard to find in the numbers). But it also reflected the rise of free-market ideology,
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  • It’s hard to imagine now, but for more than three decades after World War II financial crises of the kind we’ve lately become so familiar with hardly ever happened.
  • But the best predictor of crisis is large inflows of foreign money: in all but a couple of the cases I just mentioned, the foundation for crisis was laid by a rush of foreign investors into a country, followed by a sudden rush out.
Gene Ellis

Canada Aims to Woo International Students - NYTimes.com - 0 views

www.nytimes.com/...25iht-educlede25.html

shared by Gene Ellis on 25 Mar 13 - No Cached
  • International students are allowed to seek part-time employment off campus after six months of full-time study, as a way to help them defray costs. They can also obtain foreign work credentials: After earning a four-year undergraduate degree, they can apply to work in Canada for up to three years.
  • Other nations are not as generous: In the United States, international students are eligible to work only on campus, and many struggle to stay in the country after graduation. Tough visa rules have led to a foreign student “brain drain,”
  • In Britain, international students can work no more than 10 hours a week and need an endorsement from their school to work after graduation.
  • Gene Ellis on 25 Mar 13
     
    "choose"
Gene Ellis

Will bank supervision in Ohio and Austria be similar? A transatlantic view of the Singl... - 0 views

www.voxeu.org/...w-single-supervisory-mechanism

bank supervision ohio austria single mechanism

shared by Gene Ellis on 25 Mar 13 - No Cached
  • At the inception of the euro, it was thought possible to have a centralised monetary authority and decentralised bank supervision, but the inability to separate sovereign-debt problems from those of bank stability has led the leaders of the member states of the EU to agree to centralise supervision in the Single Supervisory Mechanism.
  • The states retained their powers to supervise the small number of state-chartered banks that seemed little threat to the stability of the new more tightly regulated national system.
  • What was not anticipated was that the more stable national banks would fail to adequately supply credit to the economy.
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  • States, not the federal government, regulated securities markets and insurance, leaving little oversight for interstate business.
  • The 1930s New Deal reforms added more agencies, including the Securities Exchange Commission and the Federal Deposit Insurance Corporation, complicating political oversight by giving them distinctive missions,
  • Yet, it was the trust companies, lacking access to emergency liquidity that caused the 1907 crisis to erupt and spread to the banks.
  • Consequently, when onerous rules, such as the prohibition on branch banking prevented banks from financing the emerging giant corporations, markets, assisted by more lightly regulated trust and insurance companies, stepped in.
  • To remedy these defects, the Federal Reserve System, established in 1913, was to act as a lender of last resort, bringing all systemically important institutions – national banks , large state banks and trust companies – under the federal supervision of the Office of the Comptroller of the Currency or the Federal Reserve banks.
  • But, they have not converged, especially with regard to state banks that often pressure state regulators.
  • Surveillance of a bank is not dependent on the geographic scope of its operations, as in the US, but on its systemic significance measured in several dimensions and whether it receives financial assistance from the European Stability Mechanism.
  • the ECB’s direct authority is more encompassing.
  • The ECB will not be directly involved in crisis management and bank resolution, which will be the responsibility of the national authorities. This autonomy will not be incentive compatible until EU directives are adopted for a unified deposit insurance system and a funded single resolution authority.
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