Fed acts to keep banks 'prudent' amid virus risksAre Britain's banks strong enough for coronavirus?But Wells Fargo, which does not have a big investment banking business, swung to a $2.4bn loss in the quarter, compared to $6.2bn profit in the same period in 2019. The firm set aside $9.5bn to cover potential coronavirus-related losses, including $8.4bn in reserves. … [Read more...] about Big US banks set aside $28bn in downturn warning
Period of economic downturn
It didn't work out that way. Within a year Keynes was back on the shelf. Austerity replaced interventionism. Instead of seeking global solutions to a global problem, countries went their own way. The London G20 had three big objectives: to prevent a second Great Depression, to agree a joint plan for financial supervision, and to come up with a global growth plan. Only the first was achieved, because although the global economy contracted in 2009 for the first time since 1945, by the second half of the year output was increasing, most markedly in the big beasts of the emerging world, India and China. … [Read more...] about Lehman Brothers collapse: five years on, we’re still feeling the shockwaves
Global financial crisis 2008-2009 The collapse that followed the 2008 banking crisis was the worst since the second world war. Banks around the world stopped lending to one another amid market panic over losses on speculative investments and the crisis led to huge government bailouts to prevent banks collapsing. Starved of access to finance, businesses failed and job losses soared. The recession that began between the run on Northern Rock in the UK in September 2007 and the collapse of Lehman Brothers in the US a year later has had a lingering aftermath , with a decade of anaemic recovery made worse by austerity. … [Read more...] about How does UK’s Covid recession compare with previous ones?
On an annual basis, the economy shrunk by 6.3 per cent. The quarterly slump was an worse than the 1930s Great Depression while the annual decline at a level unseen since the aftermath of World War II in 1945 … [Read more...] about EXCLUSIVE: The grim news coming this Christmas: Why thousands MORE Australians stand to lose their jobs in December as the country plunges into its worst recession since WWII under the weight of COVID-19
But for Brexit Bolsheviks, bent on total revolution, the Treasury itself is untrustworthy – a redoubt of obstructive pro-Europeanism that can mesmerise Philip Hammond with evidential hocus-pocus. John Redwood urges the chancellor to resist any fiscal stimulus based on “nonsensical” forecasts of a Brexit-related downturn predicated on “wacky figures”. Those figures are produced by the independent Office for Budget Responsibility. But that too is a pillar of the Osbornite architecture, ripe for demolition. … [Read more...] about After Mark Carney, the Brexit Bolsheviks have a new target