Saturday 20th of April 2024

from the playground .....

from the playground .....

Love-struck Brown and Obama unveil own ‘special relationship’
After the love-in between Gordon Brown and Barack Obama at the Foreign Office this morning there's no surprise the Prime Minister was displaying a new spring in his step.

The meeting and subsequent press conference must have exceeded even his expectations. There may not be the sparky Blair-Bush rapport, but then these are two very different, and far more reserved characters.

The problem for the Opposition parties is that they desperately want some of the Obama magic dust to rub off on them but they can't find an easy way to elbow themselves onto the stage with him.

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In a premier diplomatic tour that has already been scrutinized for every blemish, Mr. Obama has, thus far, gotten some not-so-good reviews — several European news outlets complained that he seemed aloof — to some raves — President Nicolas Sarkozy of France called him “very helpful.”

Mr. Sarkozy was referring to Mr. Obama the mediator. For a tense hour on Thursday, Mr. Sarkozy and Premier Hu Jintao of China were going back and forth about tax havens. In a large conference room at the Excel Center, surrounded by 18 other world leaders, the two men sniped at each other, according to officials in the room.

Mr. Sarkozy wanted the big communiqué produced by the Group of 20 to endorse naming and shaming global tax havens, maybe even including Hong Kong and Macao, which are under China’s sovereignty. Unsurprisingly, Mr. Hu was having none of it. He appeared angry that Mr. Sarkozy was effectively accusing China of lax regulation, and that the French leader was asking China to endorse sanctions issued by the Organization for Economic Cooperation and Development, a club of wealthy nations that Beijing has yet to join.

According to accounts provided by White House officials and corroborated by European and other officials also in the room, Mr. Obama escorted both men, one at a time, to a corner of the room, to judge the dispute. How about replacing the word “recognize,” Mr. Obama suggested, with the word “note?”

The result: “The era of banking secrecy is over,” the final communiqué said. “We note that the O.E.C.D. has today published a list of countries assessed by the Global Forum against the international standard for exchange of tax information.” Hong Kong and Macao did not appear on the list.

It was not a Middle East peace accord. But Mr. Obama had his first moment as a statesman.

equity, liability, regulations...

from the NYT

Why Germany Prefers Regulation to Stimulus

By Carter Dougherty

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In his essay, Mr. Sinn writes that “a time bomb is ticking” because if banks shrink themselves back to health, they will drag down economies with them. “And all this just because banks, hedge funds, special purpose vehicles, investment funds and real-estate financers were allowed to conduct their business with only tiny amounts of equity capital,” he continues. “Without equity, there is no liability, and without liability, people gamble.”

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see toon at top.