EUOBSERVER / BRUSSELS - The Czech EU presidency is expected to call EU leaders for an informal meeting at the end of this month to help forge a unified response to the global economic slowdown. A European Commission spokesperson said the meeting would be a "preparatory exchange of views" and characterised the event as part of an "intensive series of preparations" before the leaders meet for their formal spring summit in March. The Justus Lipsius building in Brussels will host euro area finance ministers on Monday and all EU 27 on Tuesday The decision follows a telephone conversation on Monday morning (9 February) between European Commission President Jose Manuel Barroso and the Czech Prime Minister Mirek Topolanek. Both were criticised last week by French President Nicolas Sarkozy for failing to tackle the financial crisis head-on. The informal summit is the latest in a plethora of high-level discussions between member states and EU officials to deal with the ongoing financial crisis and economic slowdown that show little sign of abating.
EUOBSERVER / BRUSSELS - The Czech EU presidency is expected to call EU leaders for an informal meeting at the end of this month to help forge a unified response to the global economic slowdown.
A European Commission spokesperson said the meeting would be a "preparatory exchange of views" and characterised the event as part of an "intensive series of preparations" before the leaders meet for their formal spring summit in March.
The Justus Lipsius building in Brussels will host euro area finance ministers on Monday and all EU 27 on Tuesday
The decision follows a telephone conversation on Monday morning (9 February) between European Commission President Jose Manuel Barroso and the Czech Prime Minister Mirek Topolanek.
Both were criticised last week by French President Nicolas Sarkozy for failing to tackle the financial crisis head-on.
The informal summit is the latest in a plethora of high-level discussions between member states and EU officials to deal with the ongoing financial crisis and economic slowdown that show little sign of abating.
Wall Street helped produce the global financial and economic crisis. Now, as the Obama administration prepares to unveil a revised bailout plan for the banking system, policy makers hope Wall Street can be part of the solution. Administration officials said the plan, to be announced Tuesday, was likely to depend in part on the willingness of private investors other than banks -- like hedge funds, private equity funds and perhaps even insurance companies -- to buy the contaminating assets that wiped out the capital of many banks. The officials say they are counting on the profit motive to create a market for those assets. The government would guarantee a floor value, officials say, as a way to overcome investors' reluctance to buy them. Details of the new plan, which were still being worked out during the weekend, are sketchy. And they are likely to remain so even after Treasury Secretary Timothy Geithner announces the plan on Tuesday. But the aim is to reduce the need for immediate U.S. government financing and relieve fears that taxpayers will pay excessive prices if the government takes over risky securities. The banks created those securities when credit and home prices were booming a few years ago.
Wall Street helped produce the global financial and economic crisis. Now, as the Obama administration prepares to unveil a revised bailout plan for the banking system, policy makers hope Wall Street can be part of the solution.
Administration officials said the plan, to be announced Tuesday, was likely to depend in part on the willingness of private investors other than banks -- like hedge funds, private equity funds and perhaps even insurance companies -- to buy the contaminating assets that wiped out the capital of many banks.
The officials say they are counting on the profit motive to create a market for those assets. The government would guarantee a floor value, officials say, as a way to overcome investors' reluctance to buy them.
Details of the new plan, which were still being worked out during the weekend, are sketchy. And they are likely to remain so even after Treasury Secretary Timothy Geithner announces the plan on Tuesday. But the aim is to reduce the need for immediate U.S. government financing and relieve fears that taxpayers will pay excessive prices if the government takes over risky securities. The banks created those securities when credit and home prices were booming a few years ago.
European governments have announced stimulus packages worth billions over the past months to lift economies out of the economic crisis, but only a tiny fraction of the money will be invested in 'green growth' - climate, energy and environmental measures, a new study reveals. The largest 13 EU economies have announced economic packages worth €90 billion, or 0.78 percent of their gross national product, from 1 September 2008 to 28 January 2009. US president Barack Obama is set to invest heavily in green technology over the next ten years But of this only €1.2 billion - 1.3 percent - will be devoted to green investments, according to a new analysis published by Danish weekly, Monday Morning. The study is based on figures from the Brussels based think-tank Bruegel. "Much more could be done on in the areas of energy- and climate," said Jakob von Weizsäker from Bruegel. The financial aid packages reflect a traditional and outdated way of thinking by European governments, he pointed out.
European governments have announced stimulus packages worth billions over the past months to lift economies out of the economic crisis, but only a tiny fraction of the money will be invested in 'green growth' - climate, energy and environmental measures, a new study reveals.
The largest 13 EU economies have announced economic packages worth €90 billion, or 0.78 percent of their gross national product, from 1 September 2008 to 28 January 2009.
US president Barack Obama is set to invest heavily in green technology over the next ten years
But of this only €1.2 billion - 1.3 percent - will be devoted to green investments, according to a new analysis published by Danish weekly, Monday Morning. The study is based on figures from the Brussels based think-tank Bruegel.
"Much more could be done on in the areas of energy- and climate," said Jakob von Weizsäker from Bruegel.
The financial aid packages reflect a traditional and outdated way of thinking by European governments, he pointed out.
Aiming to head off growing public anger at the large remuneration and bonuses that banking executives continue to be given despite many of them receiving billions of euros in state aid, some European governments appear to be looking to cap their pay - a move welcomed by the European Commission. On Thursday (5 February), French President Nicholas Sarkozy said that he aimed to change how bankers are paid, with details beginning to emerge over the weekend. There is growing public anger at the remuneration executives at bailed-out banks continue to be awarded A voluntary code of conduct covering pay for all executives at financial institutions has been drawn up by the French Banking Federation alongside the French treasury, the country's Banking Commission and the Financial Market Authority (AMF), the national market regulator. The code, beginning in 2010 covering the 2009 period, would see bonuses dependent on past performance and profitability, rather than on predicted revenues. Additionally, stocks and options awarded to executives could not be used towards speculative activity.
Aiming to head off growing public anger at the large remuneration and bonuses that banking executives continue to be given despite many of them receiving billions of euros in state aid, some European governments appear to be looking to cap their pay - a move welcomed by the European Commission.
On Thursday (5 February), French President Nicholas Sarkozy said that he aimed to change how bankers are paid, with details beginning to emerge over the weekend.
There is growing public anger at the remuneration executives at bailed-out banks continue to be awarded
A voluntary code of conduct covering pay for all executives at financial institutions has been drawn up by the French Banking Federation alongside the French treasury, the country's Banking Commission and the Financial Market Authority (AMF), the national market regulator.
The code, beginning in 2010 covering the 2009 period, would see bonuses dependent on past performance and profitability, rather than on predicted revenues. Additionally, stocks and options awarded to executives could not be used towards speculative activity.
Nicolas Sarkozy and other European leaders have suggested that Britain is badly placed to weather the recession. While Chancellor, Mr Brown was resented for using meetings of European Union finance ministers to lecture them on the virtues of "prudence". High rates of British economic growth, he was fond of telling them, were a model for eurozone countries. Now the boot is on the other foot. Or is it? Mr Sarkozy, who as French finance minister in 2004 would have been treated to Mr Brown's homilies, is the one now giving the lecture. France grew by 0.7 per cent in 2008, with growth stagnating but continuing into the third quarter of last year. French growth was at 2.2 per cent in 2007. Britain too grew by 0.7 per cent in 2008. But behind the same headline figure there was further to fall for Britain, from three cent GDP growth in 2007.
High rates of British economic growth, he was fond of telling them, were a model for eurozone countries.
Now the boot is on the other foot. Or is it?
Mr Sarkozy, who as French finance minister in 2004 would have been treated to Mr Brown's homilies, is the one now giving the lecture.
France grew by 0.7 per cent in 2008, with growth stagnating but continuing into the third quarter of last year. French growth was at 2.2 per cent in 2007.
Britain too grew by 0.7 per cent in 2008.
But behind the same headline figure there was further to fall for Britain, from three cent GDP growth in 2007.
Supplying us consuming public with anything else is propaganda, and a betrayal of their true reason for being. If they keep violating our trust like this, if they continue to slant the data that we need to make intelligent decisions, the print news media might find themselves with a declining readership. Never underestimate their intelligence, always underestimate their knowledge.
Frank Delaney ~ Ireland
The Senate measure offers the credit to anyone buying a primary residence. But buyers must earn enough to have $7,500 in income taxes -- $81,900 per year for a family of four -- to get the full benefit.
By Ben Meyerson and Sarah Gantz, The Los Angeles Times
The Senate's proposed $15,000 tax credit for home buyers would boost the ailing housing market but do little to help low-income people who need it most, experts say. The measure, which is part of the $827-billion economic stimulus plan that the Senate is due to vote on Tuesday, would offer the credit to anyone who buys a primary residence. But to take full advantage of the credit, buyers would have to earn enough to use it and spend at least $150,000 on a home... Since the money comes as a deductible tax credit spread over two years, home buyers must earn enough to have $7,500 in income taxes -- $81,900 per year for a family of four to get the full benefit, according to the housing coalition. But if the home costs less than $150,000, the deduction is only worth 10% of the house's value, meaning that those buying the cheapest homes wouldn't receive the full benefit.
The measure, which is part of the $827-billion economic stimulus plan that the Senate is due to vote on Tuesday, would offer the credit to anyone who buys a primary residence. But to take full advantage of the credit, buyers would have to earn enough to use it and spend at least $150,000 on a home...
Since the money comes as a deductible tax credit spread over two years, home buyers must earn enough to have $7,500 in income taxes -- $81,900 per year for a family of four to get the full benefit, according to the housing coalition.
But if the home costs less than $150,000, the deduction is only worth 10% of the house's value, meaning that those buying the cheapest homes wouldn't receive the full benefit.
The financial crisis will be "more extreme and more serious than that of the 1930s", cabinet minister Ed Balls has predicted. Mr Balls, a former economic adviser to Gordon Brown, said the global recession would be the most serious for "over 100 years", the Yorkshire Post reported.
The financial crisis will be "more extreme and more serious than that of the 1930s", cabinet minister Ed Balls has predicted.
Mr Balls, a former economic adviser to Gordon Brown, said the global recession would be the most serious for "over 100 years", the Yorkshire Post reported.
He told a Labour conference that these were "seismic events that are going to change the political landscape". The Conservatives said the remarks were "staggering and very worrying"
He told a Labour conference that these were "seismic events that are going to change the political landscape".
The Conservatives said the remarks were "staggering and very worrying"
The financial crisis will be "more extreme and more serious than that of the 1930s", cabinet minister Ed Balls has predicted. Mr Balls, a former economic adviser to Gordon Brown, said the global recession would be the most serious for "over 100 years", the Yorkshire Post reported. He told a Labour conference that these were "seismic events that are going to change the political landscape". The Conservatives said the remarks were "staggering and very worrying".
The Conservatives said the remarks were "staggering and very worrying".
While some in Washington have obsessed about "process stories" regarding the recovery package, for most of America the economy is not a spectator sport. That's why the President went to discuss with working people exactly how the package will affect them and their communities in a town hall today in Elkhart, Indiana. ... Questions from the crowd of about 1,700 people ranged from the foreclosure crisis and green energy to the mechanism by which recovery funds will reach communities like Elkhart. Some highlights, then the full transcript below. ... Q We are truly tired of the economics that we have been getting that has got us into the position that we're in. That theory has been a trickle down. We need to trickle up. So I would hope in your philosophy about trying to kick-start the economy that the money gets directly to the people who are -- have homes that are foreclosed, the people that have lost jobs....So I would hope...that the money gets directly into the hands of the people who are hurting. A: When it comes to tax cuts, you are exactly right that instead of providing tax cuts to the wealthiest Americans, what I've been pushing in this plan is to make sure that the tax cuts go to working families. That is not only good for those families, it's actually good for the economy, because when you give a tax break to working families who are struggling, they will spend it on buying a new coat for the kids, or making sure that they get that car repaired that they use to get to work. ... REMARKS BY THE PRESIDENT AT TOWN HALL Concord Community High School Elkhart, Indiana February 9, 2009 ... I intend to keep my promise. But you know, the work is going to be hard. I don't want to lie to people -- that's why we're having a town hall meeting -- because the situation we face could not be more serious. We have inherited an economic crisis as deep and as dire as any since the Great Depression. Economists from across the spectrum have warned that if we don't act immediately, millions of more jobs will be lost. The national unemployment rates will approach double digits not just here in Elkhart, all across the country. More people will lose their homes and their health care. And our nation will sink into a crisis that at some point we may be unable to reverse. So we can't afford to wait. We can't wait and see and hope for the best. We can't posture and bicker and resort to the same failed ideas that got us into this mess in the first place. (Applause.) That was what this election was all about -- the American people rejected those ideas because they hadn't worked. (Applause.) You didn't send us to Washington because you were hoping for more of the same; you sent us there to change things -- (applause) -- the expectation that we would act quickly and boldly to carry out change. And that's exactly what I intend to do as President of the United States of America. (Applause.)
...
Questions from the crowd of about 1,700 people ranged from the foreclosure crisis and green energy to the mechanism by which recovery funds will reach communities like Elkhart. Some highlights, then the full transcript below.
Q We are truly tired of the economics that we have been getting that has got us into the position that we're in. That theory has been a trickle down. We need to trickle up. So I would hope in your philosophy about trying to kick-start the economy that the money gets directly to the people who are -- have homes that are foreclosed, the people that have lost jobs....So I would hope...that the money gets directly into the hands of the people who are hurting.
A: When it comes to tax cuts, you are exactly right that instead of providing tax cuts to the wealthiest Americans, what I've been pushing in this plan is to make sure that the tax cuts go to working families. That is not only good for those families, it's actually good for the economy, because when you give a tax break to working families who are struggling, they will spend it on buying a new coat for the kids, or making sure that they get that car repaired that they use to get to work.
REMARKS BY THE PRESIDENT AT TOWN HALL Concord Community High School Elkhart, Indiana February 9, 2009
I intend to keep my promise. But you know, the work is going to be hard. I don't want to lie to people -- that's why we're having a town hall meeting -- because the situation we face could not be more serious. We have inherited an economic crisis as deep and as dire as any since the Great Depression.
Economists from across the spectrum have warned that if we don't act immediately, millions of more jobs will be lost. The national unemployment rates will approach double digits not just here in Elkhart, all across the country. More people will lose their homes and their health care. And our nation will sink into a crisis that at some point we may be unable to reverse.
So we can't afford to wait. We can't wait and see and hope for the best. We can't posture and bicker and resort to the same failed ideas that got us into this mess in the first place. (Applause.) That was what this election was all about -- the American people rejected those ideas because they hadn't worked. (Applause.) You didn't send us to Washington because you were hoping for more of the same; you sent us there to change things -- (applause) -- the expectation that we would act quickly and boldly to carry out change. And that's exactly what I intend to do as President of the United States of America. (Applause.)
The next part of the learning process will be to actually describe what the Great Depression was. It's kinda like mixing Fuentes' story of the guy who puts on his battle armor and leaving the house exclaims, "I'm off to fight The Thirty Years War" and the Python "No one ever expects the Spanish Inquisition" skit.
But because so few people are educated to the real Great Depression, it is just another skit to many.
Two people. Martini, Grey Goose, dry. Signing Wealth Tax Form 1080W - "Nobody expected we would have to help fight the Great Great Depression."
1929 - Stock market crashed, a few people jumped, some farms got dusty, Chaplin made some funny movies and thanks to the war, we got out of it. Yahoo~!
Never underestimate their intelligence, always underestimate their knowledge.
I didn't know that one, it's great. Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith
"When I was a young student in Latin American schools, we were constantly being asked to define the boundary between the Middle Ages and the Modern Age. I always remembered a grotesquely famous Spanish play in which a knight in armour unsheaths his sword and exclaims to his astonished family: "I'm off to the Thirty Years' War!"
"Did the modern age begin with the fall of Constantinople to the Turks in 1453, the discovery of the New World in 1492, or the publication of Copernicus of his Revolutions of the Spheres in 1543? To give only one answer is akin to exclaiming that we are off to the Thirty Years' War. At least since Vico, we know that the past is present in us because we are the bearers of the culture we ourselves have made.
"Nevertheless, given a choice in the matter, I have always answered that, for me, the modern world begins when Don Quixote de la Mancha, in 1605, leaves his village, goes out into the world, and discovers that the world does not resemble what he has read about it."
It only gets better. The Fuentes book that this and other essays are in is named Myself With Others(1988). Never underestimate their intelligence, always underestimate their knowledge.
"Did the modern age begin with the fall of Constantinople to the Turks in 1453, the discovery of the New World in 1492, or the publication of Copernicus of his Revolutions of the Spheres in 1543? To give only one answer is akin to exclaiming that we are off to the Thirty Years' War.
