Iceland's economy suffered a near total collapse when its banks were laid low by the global credit crunch. The public lost their jobs and savings and now the government wants to know why. In an effort to thoroughly investigate the economic collapse and related crimes, the Icelandic government has sought help from a prominent European figure. Newly elected MEP Eva Joly, the Norwegian-born French magistrate who became famous as the lead judge in the Elf Aquitaine corruption scandal, acts as special adviser to Iceland`s authorities. Deutsche Welle: Ms Joly, how would you compare this investigation with the Elf Aquitaine affair?Eva Joly: This is much huger, much much more important. This bankruptcy is much bigger than Enron, involving a lot of people, involving other banks, and really the investigation is huge.What about the time and costs involved?It will probably be expensive. I calculated that in order to pay for people and experts from abroad - and we need highly trained experts - we will need some three million Euros a year. And it will take a long time, it's impossible to say how long at the moment. That will depend on what kind of cooperation we will get from abroad and how far we will go. But I think that we can reasonably say that within two or three years, we should have some cases ready to go to court. If I judge by the ELF case we could even spend up to seven years.
In an effort to thoroughly investigate the economic collapse and related crimes, the Icelandic government has sought help from a prominent European figure. Newly elected MEP Eva Joly, the Norwegian-born French magistrate who became famous as the lead judge in the Elf Aquitaine corruption scandal, acts as special adviser to Iceland`s authorities.
Deutsche Welle: Ms Joly, how would you compare this investigation with the Elf Aquitaine affair?Eva Joly: This is much huger, much much more important. This bankruptcy is much bigger than Enron, involving a lot of people, involving other banks, and really the investigation is huge.What about the time and costs involved?It will probably be expensive. I calculated that in order to pay for people and experts from abroad - and we need highly trained experts - we will need some three million Euros a year. And it will take a long time, it's impossible to say how long at the moment. That will depend on what kind of cooperation we will get from abroad and how far we will go. But I think that we can reasonably say that within two or three years, we should have some cases ready to go to court. If I judge by the ELF case we could even spend up to seven years.
Nicolas Sarkozy and Gordon Brown expressed a "total convergence" of views in their meeting ahead of this week's G8 summit in Italy, with both leaders warning that rising oil prices and declining public investment could spoil the chances for recovery of the world's economy. Meeting in the French town of Evian on Monday (6 July), Mr Brown, the UK's prime minister, argued that governments must keep spending to return to growth. Mr Sarkozy: "We cannot afford to have low growth rates over many years." "If we can get growth, if we can get unemployment down, if we can keep interest rates and inflation down, then there is scope to do the things we want to do, and that is to get money to the frontline services," he told journalists after the event, referring to the need to avoid pay and job cuts in the public sector. His French counterpart, president Nicolas Sarkozy, played the same tune, saying: "Of course we need to combat indebtedness and try to restrain deficit, but we will only achieve that if we restore growth and if we restore our economies to health."
Nicolas Sarkozy and Gordon Brown expressed a "total convergence" of views in their meeting ahead of this week's G8 summit in Italy, with both leaders warning that rising oil prices and declining public investment could spoil the chances for recovery of the world's economy.
Meeting in the French town of Evian on Monday (6 July), Mr Brown, the UK's prime minister, argued that governments must keep spending to return to growth.
Mr Sarkozy: "We cannot afford to have low growth rates over many years."
"If we can get growth, if we can get unemployment down, if we can keep interest rates and inflation down, then there is scope to do the things we want to do, and that is to get money to the frontline services," he told journalists after the event, referring to the need to avoid pay and job cuts in the public sector.
His French counterpart, president Nicolas Sarkozy, played the same tune, saying: "Of course we need to combat indebtedness and try to restrain deficit, but we will only achieve that if we restore growth and if we restore our economies to health."
"Mon ami!", "L'entente formidable au soleil", and friendly grasps of the shoulder - the words and the physical language of the Evian summit could hardly have been friendlier.But the message, particularly from the British leader, was pretty grim. The first stop on the summer summit circuit was in Evian les Bains - yes, the one with the famous water where generations of Europeans have come to have their spirits restored and rejuvenated. No green shootsJust what Gordon Brown might need perhaps. But he comes here with a pretty dire assessment on the economy. Number 10 is using today, in reality a warm up event to the bigger G8 meeting starting on Wednesday in Italy, to start rolling out the prime minister's message. He is warning that there is "no room for complacency" on the economy, warning that unemployment is continuing to grow, and trade to fall, pushing his message that the world is at a "pivotal point", and that continued action from governments is required to stem the downturn.
"Mon ami!", "L'entente formidable au soleil", and friendly grasps of the shoulder - the words and the physical language of the Evian summit could hardly have been friendlier.
But the message, particularly from the British leader, was pretty grim.
The first stop on the summer summit circuit was in Evian les Bains - yes, the one with the famous water where generations of Europeans have come to have their spirits restored and rejuvenated.
No green shoots
Just what Gordon Brown might need perhaps. But he comes here with a pretty dire assessment on the economy.
Number 10 is using today, in reality a warm up event to the bigger G8 meeting starting on Wednesday in Italy, to start rolling out the prime minister's message.
He is warning that there is "no room for complacency" on the economy, warning that unemployment is continuing to grow, and trade to fall, pushing his message that the world is at a "pivotal point", and that continued action from governments is required to stem the downturn.
sparkozy sombrely intoned: ' we cannot afford to lose votes, we will whip this dead horse till it resurrects and breeds magic ponies for everyone, count yourselves privileged to be a taxpayer and pay for this futile piece of mummery, for ever and ever amen'
gordo mumbles something about the 'entente cordiale'...
enter stage left a frolicking, botoxed satyr
'anyone want their suntanned shoulders rubbed, hehe?'
i remember seeing him the day he announced on tv that the best thing about doing the G8 boogie at l'aquila was that the protesters wouldn't dare show up and disturb the area of recent tragedy.
bwahahaha, i'm guessing barack and michelle are gonna get 'swine flu' and beg off, and the 70,000 tentopoli folks are going to have plenty to say to the world press...
titanic, meet iceberg
CHTANG! ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
We cannot afford to have low growth rates over many years.
And yet it is increasingly obvious we can't afford growth either. what to do? In the long run, we're all dead. John Maynard Keynes
EUOBSERVER / BRUSSELS - Finance ministers from the 16-country eurozone remain divided on whether the currency area should hold a single seat at the International Monetary Fund (IMF). Luxembourg's prime minister, Jean-Claude Juncker, who chairs the monthly eurogroup meetings due to his double-hatted role as the country's finance minister, said he supported the move towards one seat on the international financial institution. The IMF building in Washington European commissioner for economic and monetary affairs, Joaquin Almunia, also said he was in favour of the move. "The best way to have a clear and a strong defence of our common interests as an economic and monetary union at the IMF level is to have a single chair," Mr Almunia told journalists after the meeting on Monday (6 July). "This is not the opinion of some of the members of the euro area," he added.
EUOBSERVER / BRUSSELS - Finance ministers from the 16-country eurozone remain divided on whether the currency area should hold a single seat at the International Monetary Fund (IMF).
Luxembourg's prime minister, Jean-Claude Juncker, who chairs the monthly eurogroup meetings due to his double-hatted role as the country's finance minister, said he supported the move towards one seat on the international financial institution.
The IMF building in Washington
European commissioner for economic and monetary affairs, Joaquin Almunia, also said he was in favour of the move.
"The best way to have a clear and a strong defence of our common interests as an economic and monetary union at the IMF level is to have a single chair," Mr Almunia told journalists after the meeting on Monday (6 July).
"This is not the opinion of some of the members of the euro area," he added.
European member states are seeking solutions to soften the impact of the prolonged economic crisis. Sweden, whose much-admired social model is the envy of many countries, has the return to prosperity a priority for its presidency of the Union. But Le Soir reports that Sweden's example may not be easy to follow. A year ago, France took command of the Union and Nicolas Sarkozy was heading toward a stand-out presidency. Socialists deplored his policies, most especially the dearth of any defence of the European social model.Now, a year later, the recession has hit hard and social security is the talk of the town again. In addition to fighting climate change, the Swedish presidency has put the struggle against the global economic crisis at the top of its agenda. It aims to make growth and jobs core priorities of the new Lisbon Strategy, which should be adopted under Spain's presidency in 2010. In this context, one cannot help wondering whether the Swedish social model might not help the EU 27 out of the morass. Could it be an antidote to the crisis? Another fine opportunity for Sweden to shine...and consign the calamitous Czech presidency to oblivion as expeditiously as possible? Over the past 20 years, what is more generally called the "Scandinavian model" has to a greater or lesser extent inspired social policy in several other countries, including Belgium, France and Germany, which, however, have not succeeded in recreating a Swedish "paradise". To wit: the employment rate in Sweden was 73% before the crisis, i.e. higher than the 70% target set at Lisbon in 2000. 71.5% of Swedish women are gainfully employed, as against only every other Belgian woman. So is the Swedish system a panacea? "It's too early to judge how far this model will weather the crisis," notes Ernst Erik Ehnmark, rapporteur to the European Economic and Social Committee. The Swedish auto industry (Volvo, Scania), for one, has not eluded the current economic upheavals.
European member states are seeking solutions to soften the impact of the prolonged economic crisis. Sweden, whose much-admired social model is the envy of many countries, has the return to prosperity a priority for its presidency of the Union. But Le Soir reports that Sweden's example may not be easy to follow.
A year ago, France took command of the Union and Nicolas Sarkozy was heading toward a stand-out presidency. Socialists deplored his policies, most especially the dearth of any defence of the European social model.Now, a year later, the recession has hit hard and social security is the talk of the town again. In addition to fighting climate change, the Swedish presidency has put the struggle against the global economic crisis at the top of its agenda. It aims to make growth and jobs core priorities of the new Lisbon Strategy, which should be adopted under Spain's presidency in 2010.
In this context, one cannot help wondering whether the Swedish social model might not help the EU 27 out of the morass. Could it be an antidote to the crisis? Another fine opportunity for Sweden to shine...and consign the calamitous Czech presidency to oblivion as expeditiously as possible? Over the past 20 years, what is more generally called the "Scandinavian model" has to a greater or lesser extent inspired social policy in several other countries, including Belgium, France and Germany, which, however, have not succeeded in recreating a Swedish "paradise". To wit: the employment rate in Sweden was 73% before the crisis, i.e. higher than the 70% target set at Lisbon in 2000. 71.5% of Swedish women are gainfully employed, as against only every other Belgian woman. So is the Swedish system a panacea? "It's too early to judge how far this model will weather the crisis," notes Ernst Erik Ehnmark, rapporteur to the European Economic and Social Committee. The Swedish auto industry (Volvo, Scania), for one, has not eluded the current economic upheavals.
One energy expert says oil could fall to as little as $20 a barrel by the end of the year. That could push gasoline prices back down to $2 a gallon, prices not seen since last fall's slide slammed retail gasoline to its lowest value in four years. Energy experts say oil supply is outstripping demand. Eventually suppliers will tire of paying to store all of the surplus oil and flood the market, they predict.
A year after oil hit a record closing price, the commodity's price is way down -- and may fall significantly further as supply continues to dwarf demand. -Skip- The reasons are simple, said Philip K. Verleger Jr., an expert on energy markets at the University of Calgary in Canada: The still-sputtering economy has lessened demand at a time when there is already a big surplus of oil. For eight straight months, oil supplies have been running about 2 million barrels a day higher than the global demand of 83 million barrels a day, Verleger said. Eventually, he and others predicted, suppliers will tire of paying to store all of the surplus oil and flood the market. "That is the largest and longest continuous glut of supply that I have seen in 30 years of following energy prices," Verleger said. "It's a huge surplus. There has never been anything like it." -Skip- With so much oil available and so little need for that amount, investors, oil companies and even some banks have bought and stored surplus oil everywhere they can. By one estimate, before oil surged to its high this year of $73.38 a barrel in June, as many as 67 supertankers -- each capable of carrying 2 million barrels of oil -- were being used as floating storage. -Skip- But the glut has gone on for so long, he said, that the cost of all of that storage is bound to rise. When it rises enough, some suppliers will refuse to pay and a lot of that oil will be dumped onto the market. "Oil will drop to $20 a barrel by the end of the year because this situation just cannot be sustained," Verleger said.
-Skip-
The reasons are simple, said Philip K. Verleger Jr., an expert on energy markets at the University of Calgary in Canada: The still-sputtering economy has lessened demand at a time when there is already a big surplus of oil.
For eight straight months, oil supplies have been running about 2 million barrels a day higher than the global demand of 83 million barrels a day, Verleger said. Eventually, he and others predicted, suppliers will tire of paying to store all of the surplus oil and flood the market.
"That is the largest and longest continuous glut of supply that I have seen in 30 years of following energy prices," Verleger said. "It's a huge surplus. There has never been anything like it."
With so much oil available and so little need for that amount, investors, oil companies and even some banks have bought and stored surplus oil everywhere they can. By one estimate, before oil surged to its high this year of $73.38 a barrel in June, as many as 67 supertankers -- each capable of carrying 2 million barrels of oil -- were being used as floating storage.
But the glut has gone on for so long, he said, that the cost of all of that storage is bound to rise. When it rises enough, some suppliers will refuse to pay and a lot of that oil will be dumped onto the market.
"Oil will drop to $20 a barrel by the end of the year because this situation just cannot be sustained," Verleger said.
... that's basically what [Thomas Friedman]'s doing here. The internet is speeding up business communications, and global labor markets are more fluid than ever. Therefore, the moon is made of cheese. That is the rhetorical gist of The World Is Flat. It's brilliant. Only an America-hater could fail to appreciate it.
(h/t Drew) A man of words and not of deeds is like a garden full of weeds; a man of deeds and not of words is like a garden full of turds — Anonymous
Cushing, the place where the WTI is quoted, only has roughly 30mb/d of storage (and it's been full for quite a bit of time). The US Strategic Reserve has about 700 million barrels. In the long run, we're all dead. John Maynard Keynes
The PP is all for bailing out the fat cats.
Also the Central Bank doesn't want to hear about regulatory intervention or nationalisation of failing institutions.
It's moral hazard all around. A man of words and not of deeds is like a garden full of weeds; a man of deeds and not of words is like a garden full of turds — Anonymous
