The fact that chatter about a wealth tax is increasing to the point where it could become reality in the UK should not be a surprise. But it would be a very odd thing for a Conservative government to be the one to actually implement it.
If you’re like me, you’ve certainly wondered why economic growth has been so sluggish after the worst post-war recession — the Great Recession, or Great Financial Crisis as some have callednthe 2007-2009 crisis. Normally, the economy should have surged, after such a deep slump.
Instead, we’re proud of economic growth figures around 2% in Britain and the US and cheer when the eurozone posts a meager GDP advance of above 1% almost a decade after the crisis.
The biggest question that is still unanswered after the 2007-2009 financial crisis is: why has growth been so slow? Compared to previous recessions, both in the US and in Europe, the rebound has felt more like an extension of the crisis rather than like a proper recovery, as in previous cases.
Almost two years ago, economist Andrew Smithers warned that US companies themselves were endangering the recovery. Little has changed since then, but public awareness of the problem is increasing, and with it, hopes that a solution is around the corner.
Western Europe overtook China to become the top destination for foreign direct investment last year, a recent study by EY shows.
The US economy is vulnerable to a new recession that could take place soon, renowned bearish analyst Albert Edwards wrote in recent research.
This means the 33-year bull market in bonds is not nearing its end, as some commentators had thought it might after the recent sudden rise in yields on sovereign bonds.
There’s no easy way to put this: the central banks are like the naked emperor in the well-known story. And the only solution that could save us from the next recession is so politically sensitive that it will not be put into practice.
By Sourajit Aiyer
Indian equities have outperformed most of their emerging market peers, as well as developed market stocks, and investors have been encouraged following the elections. What is ahead for Indian stocks?
By Sourajit Aiyer
Indian markets and economy had an interesting fiscal year FY2015 (Apr 2014-Mar 2015). While early signs of recovery are visible — a reversal from the previous turbulent years — a lot is still needed for the promised “achhey din” (good days) to truly arrive.
European equities are likely to continue to lead the stock markets higher into the end of the first quarter, but there will be some hiccups.
The technical picture looks good, but the question is whether technical factors and the aggressively interventionist monetary policy will be enough to put an end to the eurozone crisis for good.
Hardly a day goes by without a piece of good news and/or upbeat forecasts about the eurozone. Two of the most recent ones deal with positive eurozone earnings revisions and the improved macroeconomic picture.