Consumer prices started rising in 2021, and the rise has quickly gathered speed. Many politicians and central bankers were caught by surprise. They initially claimed that price inflation was provoked…
The May Newsletter explains the austerity concerns heralded during April, the European Banking Union issue, the coming implementation of the Tobin Tax and the fact that there was no major banking fatalities during the month.
European governments are under pressure to shore up the banking sector in the face of growing worries about the industry’s capital levels, access to funding and earning power in the context of global crisis. Indeed, weakened by their bad sovereign debt holdings, several banks are scrutinized by the credit rating agencies and two of them, the French Société Générale and Crédit Agricole have recently been downgraded by Moody’s.
The Obama administration has just proposed a new fee — otherwise known as a tax — on the country’s largest financial institutions. The tax aims to recover the difference between the bailout funds provided to these institutions a year and a half ago and the amounts ultimately returned to the Treasury. In so doing, the tax will allegedly reduce the federal deficit by some $90 billion.