Faisal Islam on Economics

Previous blog posts

• Dutch drop downer on europhoria

  February 20, 2012 5:35 pm 6 Comments

  I have just spoken to the Dutch finance minister Jan Kees de Jager, on his way in to today's euro group meeting. Mr de Jager's comments to me in English and some in Dutch made just before caused a marked popping of the europhoria bubble and a sharp move in the foreign exchange markets.

• Eurozone reaches its Lehman moment as Germany ‘insults’ Greece

  February 15, 2012 9:29 pm 12 Comments

  As the Greek president hits back at criticisms of his country from the EU, it looks like the Greek deal could be unravelling.

• UK economy likely to ‘zig-zag’ predicts Mervyn King

  12:49 pm 3 Comments

  The Governor of the Bank of England today predicted further quarters of negative GDP growth this year following the latest -0.2% slump recorded in the last quarter of last year. Britain’s economy is likely to “zig-zag” between positive and negative growth said the Governor, introducing the Bank’s quarterly economic healthcheck. Sir Mervyn said that the [...]

• Is Moody’s move a vindication for Osborne?

  February 14, 2012 9:55 am 7 Comments

  The bigger picture here: why on earth are credit ratings elevated to this hallowed status? Moody's pulled off the spectacular intellectual feat of rating the Bank of England as a lesser credit than the European Financial Stability Facility. The answer is that it has been an important piece of marketing for George Osborne, to communicate a tangible benefit from unpopular austerity.

• Endgame II: Europe’s Faustian pact

  February 13, 2012 9:12 pm 9 Comments

  Greece has voted in favour of the EU/IMF austerity package. But why is Germany pushing stability throughout Europe - and what is it hoping to achieve?

• Endgame (part 1): the cauterisation of Greece

  February 11, 2012 11:39 am 6 Comments

  Greece is being cauterised. The EU, ECB, and others have prepared the ground for Greece to be detached from the eurozone. Greece now has a horrible choice to make, says Channel 4 News economics editor Faisal Islam.

• Three years on, is quantitative easing the way forward?

  February 9, 2012 1:11 pm 24 Comments

  It's not just savers who can no longer live off paltry savings income. The retirement annuity industry has been hit by a fall of 20-30% in the annual income that pensioners will be obliged to live off for the rest of their lives.

• How many billions will Britain get from the great Swiss tax amnesty?

  February 2, 2012 10:50 pm 7 Comments

  British attempts to recoup tax from swiss bank accounts are put in the shade by america's policy of prosecuting swiss bankers reports Faisal Islam.

• Deleveraging, not de-honouring Mr Goodwin is the real issue

  January 31, 2012 9:02 pm 10 Comments

  The bigger picture here is that the entire political class is struggling right now with the border between the state and the British banking system. Far more important than de-honouring, is de-leveraging. Project Merlin has come to an end, I am told by senior bankers, and some banks have smashed their targets, and others have missed them. All will be revealed in the upcoming bank results season.