After a narrow electoral victory, centre-right ND is in the process of forming a coalition government with centre-left PASOK and left-wing DIMAR, with an aim to renegotiate the MOU and remain in the Euro. Its medium term prospects remain bleak. The politics remain messy, the underlying structural issues persist, and Greece is in a contraction spiral that reduces its tax receipts and social security contributions. The government coalition will also rest on parties and people responsible for this mess, making the chances of a real turnaround doubtful. Greeks may have bought another summer in the Euro and the Eurozone may have bought time to better prepare for a potential Grexit.... Continue Reading ...

A high frequency trading program — not a person — will be at the heart of the next multi-billion dollar rogue trading blow-up. Bruce Weber surveys the dangers.... Continue Reading ...

In the West governments and the personal sector are looking to reduce their indebtedness. Many observers comment that inflation is a way to achieve this. With quantitative easing boosting liquidity and raised levels of inflation in the West it may seem odd but it is not obvious that governments are actually using inflation or that if they were it would be a good idea.... Continue Reading ...

I bumped into a girlfriend this week on the flight back to London after a New York meeting. Immediately she began to tell me about her 26-year-old son’s work hours. That week he had not made it home until after 1.00am in the morning and was needed in the office by 7.00am. She was proud of the salary he is earning, but also aghast at the pressure he is under. ... Continue Reading ...