The New Leviathan Blog

The great opportunity of the global economic crisis: getting rid of states Would it not be proof of political maturity to accept that since the establishment of the single currency, the countries concerned have fared worse on all fronts than others: economic growth, unemployment, debt? , purchasing power? Today, 5 European countries are in unprecedented financial turmoil, and these countries belong to the euro zone: Greece of course, but also Portugal, Italy, Spain and Ireland. ...Read More >>

A debt economy Despite timid signs of rebound, the global economy does not seem to be at the end of its troubles and risks being permanently weakened by the surge in unemployment and the uncertain state of health of the banking system, according to several experts. Emboldened by a slew of better-than-expected indicators, the US administration has trumpeted "the beginning of the end of the recession" while China continues to post vigorous growth. Reassured, ...Read More >>

From the real estate crisis to the economic crisis What does the financial crisis teach us? Two things. First of all, we can't have it both ways. For years, shareholders' income has increased more than that of employees. Whether in China, the United States or Europe, the sharing of wealth is not equitable. Companies have been pushed by shareholders to earn more and more, slashing costs, pushing sales, moderating wages. To keep the machine running, we there...Read More >>

Economy and political agenda Nobel Prize winner Joseph Stiglitz judges that "the subprime crisis is not over" in the United States and Europe, and that this crisis is linked to the surge in oil and food prices, in an interview with the French newspaper Release Saturday. “The subprime crisis”, American subprime mortgage loans, “is not over”, affirms Mr. Stiglitz, explaining that with the fall of the real estate market in the United States, more and more Americans find themselves unable to repay ...Read More >>

The devastating role of hedge funds The famous “hedge funds” made record acquisitions in 2006. These new players in the global economy, however, give rise to many reservations and concerns. Their strategy consists of acquiring companies using debt (up to 80%), managing them as best as possible and reselling them a few years later, generating a capital gain in order to remunerate their shareholders. Takeover bid, then return to the...Read More >>

Towards a new crisis of 29 1. In one week, the exchange rate of the Japanese currency has regained around 5% against the dollar and the euro, but this rebound has nothing to do with any improvement in the Japanese economy. In fact, for many months, the Japanese currency has served the interests of speculative funds and all investors who appreciate only one thing in it: its low interest rate. Borrowing in yen costs prac...Read More >>