James Doran assesses the qualities needed to be Obama’s Treasury secretary at a time of unprecedented crisis, and wonders whether the front-runners measure up As situations vacant go, the position of Secretary of the United States Treasury is unique. The job requires a politician of presidential fortitude, a world-class economist and a magician capable of
There’s plenty of goodies yet in the English word-factory The most overused word this autumn has been ‘crunch’ in the sense of ‘crisis’, as in the phrase ‘credit crunch’. Not many know that it was first used thus by Winston Churchill, so adding to his many other claims to fame that of being a neologist.
Staying recently on the Herengracht in Amsterdam, I found myself trying to solve a psychological puzzle. How could anyone have thought for a moment, how could any mind have entertained even for an infinitesimal fraction of an instant, that 17th- and 18th-century Dutch domestic architecture — as elegant as any in the whole history of
Psychotherapist and former banker Lucy Beresford says we’re all in denial about our guilt for the debt crisis During the recent economic nervous breakdown, pundits everywhere put forward every possible financial cause. But they only told part of the story. Economics is also governed partly by human behaviour. So a fuller understanding of the crisis,
I ought to be a natural Warren Buffett. I’ve never had any difficulty doing the opposite of what everyone else is doing. If there ever was anyone capable of being ‘fearful when everyone else is greedy and greedy when everyone else is fearful’, it’s me. Why, then, is Warren Buffett worth tens of billions and
Financial crisis has transformed Robert Peston from egghead to celebrity, says Dominic Midgley, but the BBC business editor indignantly denies he’s a government mouthpiece The cover of the hardback version of Who Runs Britain?, Robert Peston’s masterly dissection of how the global economy got into the mess it’s in today, features an abstract version of
Moderation has never been popular in Shanghai. Over the years the city has been home to many types of excess, from opium and sing-song girls to Red Guards. At the moment the favourite is construction, and its partner, destruction. One of the newest and boldest examples of the immoderate is the Shanghai World Financial Center.
In 2003, during a long night of swilling fine French wines in Beijing, talk turned to China’s rising economic fortunes. Old China hands at the table reminisced about camel trains clattering through the capital’s dim 1970s streets. Then a mysterious American chipped in with an extraordinary tale. Back in 1983, he said, China’s coffers were
Moderation has never been popular in Shanghai. Over the years the city has been home to many types of excess, from opium and sing-song girls to Red Guards. At the moment the favourite is construction, and its partner, destruction. One of the newest and boldest examples of the immoderate is the Shanghai World Financial Center.
The real economy has taken only the first step towards recession but the housing market has already clocked up four successive quarters of negative growth. Indeed, house prices have now fallen further in 13 months, according to the Halifax, than they plunged in the whole three years of the 1989-91 crash. And like the rest
A little over a year ago, when it was already obvious to virtually everybody that the boom was over, the City’s Panglossian crowd came up with one last, seemingly profound, argument to allow them to continue to deny reality. Going by the ugly name of ‘decoupling’, the theory was that the emerging economies were no
V.S. Naipaul, that clever and often wise man, once laid down: ‘One always writes comedy at the moment of deepest hysteria.’ Well, where’s the comedy now? There is certainly plenty of hysteria. Old Theodore Roosevelt used to say: ‘Men are seldom more unreasonable than when they lose their money. They do not seek to apportion
In times of anxiety, I always turn to Jane Austen’s novels for tranquil distraction. Not that Jane was unfamiliar with financial crises and banking failures. On the contrary: she knew all about them from personal experience. As a young girl she seems to have regarded bankers as rather glamorous figures. In Lady Susan, written when
‘Whenever there’s a catastrophe on Wall Street, our business just gets better — because our products become more collectable.’ So says Bob Kerstein, founder of Virginia-based Scripophily.com, the world’s largest buyer and seller of historic bonds and share certificates. The recent blizzard of insurance and investment banking failures has brought Kerstein particularly brisk business. ‘Our
Number 35, St Andrew Square in the heart of Edinburgh’s New Town has no name plate or corporate signage. It is an anonymous executive office used by Sir Fred Goodwin, Royal Bank of Scotland’s now-departing chief executive, for discreet meetings away from the bank’s out-of-town campus headquarters at Gogarburn. From its elegant Georgian first- floor
Kim Schlunke would like you to buy a flying saucer. No, honestly, he’s got a video of it on his mobile, showing one buzzing round his lab in Perth, Australia. See it fly! See it hover! See it land delicately on its little legs! It looks, in other words, like a special effect of the
The ticking parcel I failed to spot and the oil-price prediction I got spot on Last week’s global stock market panic, the overture to this week’s astonishing round of state interventions, was in part provoked by fear of humongous losses in something called ‘credit default swaps’. These arcane inventions by Wall Street rocket-scientists are a
To anyone born before 1980, the idea that the state would own a large part of the economy was normal. The ‘mixed economy’ was a typically British compromise between American cut-throat capitalism and the incompetent communism beyond the Iron Curtain — or at least a compromise between the socialist leanings of the Labour Left and
My attitude to money is simple. I want to think about it as little as possible. So I have arranged my life with this end in view. I work hard and spend less than I earn. I put aside sums for tax and VAT and do the returns promptly. I pay bills by return of
All old Africa hands have a story of their narrow escape from charging elephants to tell. I have one myself, but I know from experience that such stories are usually more interesting to the teller than to the told. They are not quite as bad as big game hunting stories, however: they are the real