The Edge

Richard Northedge takes on corporate finance

Recession? Let them play golf

Donald Trump is as good as Keynesianism and better than a sovereign wealth fund. Spending £1bn on a Scottish golf course for toffs is an ideal way to offset recession.
Read the rest of this post »


Missed chances on banking rescues

There are two missed opportunities in the UK banking bail-out. Lloyds TSB (LON:LLOY) has failed to review its terms for rescuing HBoS (LON:HBOS) and the government has failed to review its terms for recapitalising both banks.
Read the rest of this post »


Blanchflower on the real economic truth

Interest rates will fall and inflation will plummet. That’s official: the Bank of England quietly said it while it thought no-one was listening.
Read the rest of this post »


On bank capital mismanagement

Why should investors – nevermind the government – give the banks new capital when they were so inept at looking after the capital they had?

Read the rest of this post »


The golden rule was iron pyrites after all

Gordon Brown invented the golden rule so he cannot complain that he is being beaten with it. But a smart spin-doctor might still argue it has not been broken despite soaring debt.
Read the rest of this post »


The free-market has failed

Is capitalism dead? If the world banking system can survive only with state support, what chance the rest of the economy?
Read the rest of this post »


Could the share shorting ban be causing volatility?

Is the ban on short-selling shares working? No-one can say, so let’s set up an experiment that allows hedge funds to deal in half the stocks while the rest remain protected.
Read the rest of this post »


Banks cannot be forced to finance small firms

If the political parties are to argue, then outbidding each other to help small business is more productive than many of their clashes. However, words have to be translated into cash.
Read the rest of this post »


L&G knocks spots off the toppling dominoes

Legal & General is leading the opposition to the ban on state-rescued banks paying dividends – but it was the life and pensions company that started this row of collapsing dominoes.
Read the rest of this post »


A Vat holiday would sink more businesses than it saves

A six-month Vat holiday for small firms, nevermind a cut in National Insurance, is not the antidote to recession. It will be impossible to recover the deferred tax.
Read the rest of this post »