Comment and analysis in the FT on Thursday,
The Short View on shorting
Investors are betting against the stock market in record numbers. ‘Is that good news or bad news?‘
Lex: IMF economic blues
“The largest shock since the Great Depression.” This was the cheery interpretation the IMF gave of what the world economy is suffering, notes Lex. In the UK, that long-dormant, but most British of diseases, stagflation, seems more of a potential problem in the UK than over the pond.
Comment: Jonathan Guthrie on banks and apologies
‘Should the banks apologise to other businesses?’ Banks with subprime exposure should acknowledge their errors with a “whoops” if not a “sorry”.
Comment: In defence of Basel II
Basel II is the best practical approach we have that balances a range of objectives and trade-offs, writes Nout Wellink, president of the Netherlands Bank and chairman of the Basel committee on banking supervision.
View of the Day: All about the dollar
Credit inflows used to be the largest, and most stable, source of financing in the US balance of payments, but there has been an unprecedented structural break that has clearly affected the dollar, says Jens Nordvig, senior global markets economist at Goldman Sachs.
Insight: Time to rethink floating rate debt
Spreads between three-month London interbank offered rates and expected future overnight interest rates have widened again. This matters, writes David Rule, chief executive of ISLA. Not least, many banks are exposed to basis risk by the gap between three-month Libor and overnight market rates.
Accountancy column: Securitisation tops the agenda
Do you know a QSPE from a mere SPE, or a VIE? Or the difference between ARB 51, SFAS 140 and IAS 27?, asks Jennifer Hughes in her weekly column.