Looking for future surprises that could shock the world? This would not be an exercise Europe’s top leaders such as German Chancellor Angela Merkel need these days. For her, the surprises, shocks, and upheavals are coming faster than ever. For years, she has played a key role in crisis management at the helm of the largest and strongest member country of the European … [Read more...] about Surprises, Shocks, and Upheavals
Angela Merkel
Merkels Brexit Problem
Already facing an immigration and European integration crisis that is shattering the country’s democratic foundations in the postwar era as never before, another nightmare looms on the horizon for Germany’s political and business elite: the prospect of Britain leaving the European Union. This explains why an embattled German Chancellor Angela Merkel—fully aware of the enormous … [Read more...] about Merkels Brexit Problem
The Unthinkable as the New Normal
On June 28, 2015, the oldest international financial institution, the Basel-based eighty-five-year-old Bank for International Settlements, asked in its annual report a most pertinent question: “Is the unthinkable becoming routine?” The report pointed out that low interest rates “are the most remarkable symptom of a broader malaise in the global economy: the economic expansion … [Read more...] about The Unthinkable as the New Normal
The History of Debt relief
In 1986, then-Senator Bill Bradley called for third-world debt relief at a meeting in Zürich. That was highly controversial. But the debt conversion and reduction move led, a few years later, to the success of debt relief in the form of the Brady Plan. Issuing “Brady Bonds” helped former problem debtors in Latin America regain access to capital markets. Ever since Greece’s … [Read more...] about The History of Debt relief
Questionable Legality
The largest bank health check ever undertaken in terms of the number of banks, their overall size, and their geographical reach is keeping thousands of bankers, supervisors, and auditors in overtime this summer in preparation for the launching of the European Central Bank as the eurozone’s lead bank supervisor at the beginning of November. The legality of this most ambitious … [Read more...] about Questionable Legality