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Global Financial Crisis

Kudos to Luiz Awazu Pereira da Silva and Előd Takáts at the Bank for International Settlements for breaking ranks with the eternal purveyors of optimism and fake good news that are the normal personalities at Central Banks. For two years before the financial crisis went global, central bankers and treasury department ministers and officials pumped out a steady stream of misleading information and soon after it reached its nadir, they have gone back to using selective data to try to convince us all that it's all OK, really and that the deep seated economic woes faced by much of the developed world are really only isolated, sporadic, minor after shocks. Da Silva and Takáts don't agree and actually use the words "complacency" and "self-delusion." Better still, the recognise the genius of the "unknown unknown" speech of Donald Rumsfeld. Where has the international finance community been hiding these two? Kudos.

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One always has to adopt a basic position of scepticism when someone appears to think they are being clever by using a popular phrase: an example is Dame Nemat Talaat Shafik, who likes to be known as "Minouche,", the Deputy Governor, Markets and Banking, of the Bank of England and a Member of the Bank of England Monetary Policy Committee. Her paper "Think Global, Act Local" is the start of her swansong : she is to leave the BoE in February 2017 to become Director, London School of Economics.

Economists are lining up to say that the Republic of Ireland's astonishing 26% growth in GDP has no meaning, in the great scheme of things. They are wrong and this is why: Ireland attracts high-value added businesses because of its commitment to low income and corporate taxes that most of the EU, the USA and Australia want it to change.

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CoNet Administrator

2008.

Goldman Sachs: Hank - time to come good on all those promises you made when you went to Treasury.

Henry Paulson: Great to hear from you. I'm only going to be here for a few more weeks, then they'll take my name off the dollars and I'll be out of work. What can I do for you?

What US Treasury Secretary Paulson did not mean when he spoke of "an orderly bankruptcy" for the US auto industry was closing it down. He means a variety of insolvency procedures designed to keep the businesses going.

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hahagotcha