The View From The Bridge

How I learned to stop worrying…

A headline last week asked if we should be worried about the banks. There have been relatively few times when worrying about the banks has not been in vogue, but now is not one of them. The cap on UK deposit protection was reduced last year to £75,000 per account, to reflect the strength of sterling as the EU wide bank deposit protection scheme is set at €100,000. Given sterling’s current weakness, it may well have to go back up again! On top of that we are now in a position where any future bank failures, across the EU, will be dealt with by way of a bail in, not…

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Greece isn’t fixed…by a long way – August 12th 2015

Click here to get PDF download Don’t take my word for it. Here are four opinions that come to the same conclusion; the euronauts are living in cloud cuckoo land. ‘It seems to us that the plan rests on initial forecasts for the economy and public finances which are little short of fantasy. Recent survey evidence suggests that the economic impact of capital controls has been catastrophic, with measures of activity collapsing to levels way below those seen even when the economy was contracting at annual rates of 9pc in 2010-11. Of course, such extreme weakness may end when the controls are lifted. But it is not clear that will be…