Comment, analysis and other offerings from Thursday’s FT,
FT Video: How Lehman collapsed
The FT’s Francesco Guerrera examines the fall of a Wall Street Power House.
China’s love-hate relationship with the dollar
The Chinese and US monetary authorities provide the best example of the “Stockholm syndrome” applied to international financial affairs. Cloying dependence between hostages and hostage-takers in drawn-out abductions describes the symbiotic bonds between the world’s biggest debtor, the US Treasury, and the largest creditor, the People’s Bank of China.
Editorial comment: Tories and the City
They may still have the wrong idea, but at least they are going about it in the right way. The UK Conservative party announced broad plans to abolish the Financial Services Authority in July, suggesting giving most of its authority to the Bank of England. Now they have started to ease the fears about a transition to this new model by explaining how they propose to make the switch.
Lex on Blankfein’s lament
Goldman Sachs excels at many things – among them, waging a public relations campaign. Chief executive Lloyd Blankfein’s speech to a Frankfurt banking conference yesterday lobbed the odd pot-shot at his German hosts, notably on fair value accounting, which Goldman has always robustly defended. Beyond that, his gentle questioning about the usefulness of some financial products and unjustifiable pay might grab headlines, but add very little.
FT Video: The Short View - Has the historic rally any further to run?
Jennifer Hughes on the near unprecedented rise of the last six months.
Insight: Fasten seat belts for recovery
Conventional wisdom says the stock market has gone too far, too fast. Sceptics argue that the financial system is broken, over-indebted consumers have reached breaking point and the recovery in business confidence will fizzle out as state-financed vehicle incentive schemes end. If you believe this, the best you can hope for is sub-par growth and a range-bound stock market. I think the balance of evidence favours a much more positive interpretation.
Analysis: Aviation – ties in the skies
The airline industry may be on the verge of another dramatic turn. By banding together, forming alliances and joint ventures, the old behemoths may have finally found a way to break the vicious cycle – at least on lucrative international routes.
Jonathan Guthrie: When beauty is in the eye of the super-rich
I had planned to chop up a DayGlo abstract painting using an axe. You might call it art criticism. I called it “making kindling”. It never happened. The painting was consigned to the log pile, judged noxious and unsaleable by my mother, inheritor of a modest art collection. A visiting dealer spotted the painting at The Matriarch’s pad before I could do the “Here’s Johnny!” thing. Shortly after, he sold it on commission to a collector for a few thousand pounds.
Letters to the Editor
- Investors, beware the sweets of revival
- Let the `fourth estate’ help prevent another Madoff
- Zen and the art of avoiding zombie banks