I refer to the news that JP Morgan had gambled on the markets and lost billions of dollars. (For that amazing news go here - in German.) Now it must finally be clear to all that (1) the term “bank” should be redefined in bank legislation to exclude investment banking, asset management and all that is not core to the function of “oiling the cogs of the economic machine” (providing money, ie. credit) and (2) that these narrowly-defined banks should be majority-owned by the state as representative of the people. [Read on]
The voices urging “economic growth plans” for EU countries in recession are getting louder and more numerous by the day. They say Germany should stop forcing crisis-ridden countries (Greece, Spain…actually all except Germany itself) to reduce their budget deficits. Instead short-term stimulation programmes should be rolled out. In true Keynesian style.
I must be missing out on something, because I don’t understand how these countries are supposed to finance such business cycle stimulation programmes. We’re beyond the point where Keynes can help these countries. [Read on]