Dec 9, 2013 08:35 UTC

Banks’ taper rehearsal gives emerging markets hope

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By Andy Mukherjee

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The banking industry’s dress rehearsal for tapering by the Federal Reserve has given emerging markets hope.

Dec 6, 2013 13:49 UTC
Edward Hadas

Cheap money wrong cure for West’s long-term stasis

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By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

When distinguished economists come close to defending asset price bubbles, something has gone badly wrong. Larry Summers, for example, overestimates the power of monetary policy and underestimates the importance of economic trends.

Dec 6, 2013 02:12 UTC

Benefits of being “G-SIFI” seem to outweigh costs

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By Peter Thal Larsen

The author is a Reuters Breakingviews columnist.  The opinions expressed are his own.

The benefits of being labeled “too big to fail” may just outweigh the costs. Since regulators first published their list of global systemically important financial institutions, or G-SIFIs, the banks concerned have boosted capital and tamped down balance sheets. But smaller lenders, particularly in Europe, have done the same without joining the club. And shareholders seem not to notice much of a difference.

Dec 5, 2013 22:15 UTC

Mandelanomics was too conventional to shine

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My Martin Hutchinson
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Nelson Mandela, who has died aged 95, was a rare and brave leader. But economically he was, ironically enough, too timid. He set post-apartheid South Africa on course toward a mostly free market economy with stable finances, avoiding the errors of others like neighboring Zimbabwe. But he left the country slow-growing and still suffering from inequality.

Dec 5, 2013 15:39 UTC

Forget museum art – Banksy might help Detroit

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By Richard Beales and Kevin Allison
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Christie’s says artworks owned by bankrupt Detroit could fetch up to $866 million. But there’s no need to stop there. With 78,000 abandoned buildings and a Banksy tag potentially worth $1 million or more, graffiti could help save the day.

Dec 5, 2013 12:53 UTC

China anti-bitcoin ruling will shake believers

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By Peter Thal Larsen

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

So much for China’s willingness to tolerate financial innovation. Regulators have barred the country’s banks from trading bitcoin, while denying the pseudo-money legal status and cracking down on anonymous users. Though China has stopped short of an outright ban, the move dashes hopes the country might allow start-up currencies to exist alongside the official renminbi.

Dec 4, 2013 08:15 UTC

Westfield shops for premium with $28 bln carve-up

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By Una Galani

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

Westfield is shopping for a premium with its A$30.3 billion ($28 billion) carve-up. Just three years after its last big reshuffle, the shopping mall giant is separating assets in Australia and New Zealand from outlets in the United States and Europe. The cleaner structure may allow Westfield to command a higher valuation.

Dec 3, 2013 21:25 UTC

Detroit case revs up bankruptcy option for others

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By Kevin Allison
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

It’s the start of a new era for Detroit – and perhaps other American metropolises in wobbly financial condition. A federal bankruptcy judge ruled on Tuesday that Motown, suffocating under about $18.5 billion in debt, was eligible to file for protection from creditors. If the decision withstands appeal, it would confirm bankruptcy as a credible option for even the biggest U.S. cities. It could also give other municipalities the needed kick to get their houses in order.

Dec 3, 2013 05:05 UTC

“Secular stagnation” lament revives wealth paradox

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By Andy Mukherjee

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Larry Summers reckons rich countries are suffering from long-term stagnation. If accurate, the former U.S. treasury secretary’s view is chilling. It has also revived an old, unresolved puzzle: Why doesn’t the world’s capital willingly go where it’s most needed?

Dec 2, 2013 13:40 UTC

BoE’s small-firm stimulus is blueprint for Draghi

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By Neil Unmack

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The euro zone is no longer collapsing, but credit is. The European Central Bank is reportedly considering giving banks cheap loans to stimulate lending. The Bank of England’s so-called Funding for Lending scheme shows that’s tricky, but the euro zone shouldn’t hold back.