Sep 19, 2013 11:28 UTC
Edward Hadas

Bernanke is trapped by a discredited assumption

Photo

By Edward Hadas

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

Ben Bernanke seems to be enslaved to a discredited assumption – about credit. On Wednesday, the chairman of the U.S. Federal Reserve surprised and delighted financial speculators by continuing the bond-buying policy. It was interpreted, quite correctly, as a sign that the Fed cares much less about market bubbles around the world than the still mediocre pace of the U.S. economic recovery.

Sep 19, 2013 04:55 UTC

Fed brings Asia short-term relief, long-term risks

Photo

By Andy Mukherjee

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

The U.S. Federal Reserve has granted Asia a temporary reprieve. But the longer the relief lasts, the greater the risk that complacency will undermine the region’s financial stability.

Sep 18, 2013 13:58 UTC

UK growth story is good, but not that good

Photo

By Swaha Pattanaik

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

Optimism about the UK economic outlook has become commonplace. It partly explains the welcome given to the 3.2 billion pound Lloyds Banking Group share sale too. Growth is picking up, unemployment is falling, and inflation is easing a bit. But it is not all good news.

Sep 18, 2013 04:15 UTC

Emerging markets’ foreign debt is no time bomb

Photo

By Andy Mukherjee

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

Emerging markets are sitting on a $5.8 trillion pile of debt to foreign lenders. Yet they are far less vulnerable to sudden capital flight than they were two decades ago.

Sep 17, 2013 08:08 UTC

China’s online land grab risks value mudslide

Photo

By John Foley

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

China’s internet dealmakers are on a defensive offensive. Tencent’s $448 million purchase of a stake in search engine Sogou from its owner, U.S.-listed Sohu, is the latest attempt to stop competitors snapping up a bite-sized competitor. When cash is abundant and investors forgiving, that kind of land grab can turn into a value mudslide.

Sep 16, 2013 04:43 UTC

Shanghai trade zone may give rest of China a kick

Photo

By John Foley

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

Shanghai’s new trade zone may be a lab for financial reform. It may be a prop for the city’s flagging economy. Or maybe it will just be fuel for property speculators. In fact, it can be all of these and more. But the real benefits may not be in Shanghai at all.

Sep 16, 2013 03:24 UTC

Summers smart enough to avoid Fed chair battle

Photo

By Daniel Indiviglio

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

Larry Summers is smart enough to have decided to avoid a battle over the chairmanship of the Federal Reserve. Despite the support of embattled U.S. President Barack Obama, the former Treasury chief faced opposition from both liberal Democrats and plenty of his dismal scientist peers. Summers says it’s better for the economic recovery not to have the fight. That may be true – unless his exit from the race opens new fissures.

Sep 13, 2013 16:48 UTC

Review: “Money for Nothing” sets crisis-film high

Photo

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

The press literature for “Money for Nothing,” a new documentary about the Federal Reserve, says director Jim Bruce partly funded the movie by betting against financial stocks during the crisis of 2008. That’s clever marketing. Judging by the film’s astute analysis of the past century of U.S. monetary policy, it’s also believable.

Sep 13, 2013 16:20 UTC

UK house prices needs less rigging – not more

Photo

By Chris Hughes

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

Britain’s professional home valuers are rightly worried about bubbly residential property prices. Their suggested policy response is ingenious – a requirement that the Bank of England curbs mortgage lending when annual house-price growth exceeds 5 percent. Such a counter-cyclical approach is a good idea, but setting a trigger for intervention is just as misplaced as the government schemes that are currently inflating the market.

Sep 13, 2013 16:10 UTC

Review: A blunt-edged hatchet job of free markets

Photo

By Robert Cole

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

Bryan Gould’s new book is a closely argued critique of current trends in globalisation, monetary policy, and big business. Gould, a senior figure in the UK Labour Party in the 1980s has found some culpable targets. But his own answers are unconvincing.