L’Affaire Hollande

A not very French reaction:  Kim Willsher writes:

Twenty years ago, a French president could carry on any extramarital activity in the knowledge that privacy laws and a respectful press would keep his secret. Editors and politicians colluded to ensure the public would never know. Love lives were strictly off limits to the media. The pinnacle of this self-censorship came in 1994, when Paris Matchmagazine obtained photos of Mazarine Pingeot, then aged 20, illegitimate daughter of President François Mitterrand and his lover Anne Pingeot. In a move that still astonishes the British media, Paris Matchhad sought Mitterrand’s approval before publishing the pictures.

Today, France’s privacy laws remain as draconian as ever, but the celebrity press, battling with the internet and social media, has become much less respectful. The reason is largely financial: fines for breaking the privacy laws are paltry, and soon offset by boosted sales.

In 2008, Closer, whose circulation fell from 493,000 in 2008 to 341,000 in 2012-2013, was ordered to pay €30,000 to the former first lady, Cécilia Sarkozy, after showing her in a bikini looking at a picture of her successor, Carla Bruni. Last week’s “Hollande” edition is a sellout.

The President's First Lady Hospitalized

Future US Fed Policy

As Janet Yellen assumes the chairmanship of the Federal Reserve Bank, her main competitor for the job, Larry Summers, comments on the current US economy.   The questions he raises will surely have to be addressed by Yellin.

Summers’s argument is that there are deeper problems afoot in the U.S. economy, and that so long as the Fed keeps trying to coax growth through easy money policies, without corresponding efforts by fiscal policymakers to increase demand in the economy or structural reforms to boost the country’s longer-term economic potential, we are consigned to a cycle of endlessly expanding credit and asset bubbles.

“If the United States were to enjoy several years of healthy growth under anything like current credit conditions, there is every reason to expect a return to the kind of problems of bubbles and excess lending seen in 2005 to 2007,” Summers writes, “long before output and employment returned to normal trend growth or inflation picked up again.”  Future Fed Policy

Infrastructure

 

The Francois Hollande Disaster

François Hollande seems like the European Left’s answer to George W. Bush, a disaster-prone buffoon who somehow makes it to the top and then wrecks his country. The comparison doesn’t quite work, however: Bush II, for all his flaws, had charm, some good fortune, and some political skill: he was re-elected, remember. Francois Hollande seems to have no redeeming qualities and rotten luck to boot. From its first day, when his plane was struck by lightning en route to Angela Merkel, his presidency has been plagued by disasters. He inspires nothing but contempt and mirth. The polls suggest ‘Monsieur Flanby’ — the nickname comes the popular French pudding — is the most unpopular French President of all time. He goes from gaffe to gaffe,  and we all laugh because it is funny.   The Francois Hollande Disaster

Hollande

Romanians and Bulgarians Can Work Anywhere in EU

Admitted to EU in 2007, citizens of Romania and Bulgaria can now work anywhere in the EU.  Certainly there will be strong financial incentives to do so.  A single Romanian or Bulgarian worker in Spain or Italy could increase his or her take home pay by 40-50% by moving to the UK.

For a worker with a spouse and two children the effect would be even stronger. At present they are already roughly three times better off in these countries than in their home countries. If they were to move North that would become a factor of four times in France, five in Germany or The Netherlands and six in the UK.  This is not a question of benefit tourism. It is the effect of working tax credits which, originally intended to lift the low paid out of poverty, are now available to all such workers from the EU.   Can EU Countries Afford the New Migration

Migration

 

More Women on Silicon Valley Boards?

Silicon Valley is the nation’s hub for technology advancement, innovation, dynamic thinking and progressive politics. But when it comes to America’s leading technology companies in Northern California, the composition of their board of directors is anything but diverse.

Does the boys’ club atmosphere of the corporate boards impact on businesses?  And would the presence of women and minorities change matters?  Do shareholders care enough to effect this?  Women on Silicon Valley Boards

The Credit Suisse Research Institute found that, from 2005 to 2011, the shares of companies with at least one woman on the board outperformed those without any women.  The New Yorker Reports

 

Women in the Boardroom

Important Regulator Leaves Washington with this Insight about the Financial Industry: Theft

In a recent interview, Chilton said that, despite years of hard work by financial regulators to put the 2010 Dodd-Frank law into force (witness the 882 pages required to explain a 71-page Volcker Rule), their efforts will be futile in the face of Wall Street’s money and power. “The lesson for me is: The financial sector is so powerful that they will roll things back over time,” Chilton says. “The Wall Street firms have tremendous influence, and they can impact policy to a greater degree than any one regulator or a small group of regulators can.” Bart Chilton’s Parting Salvo

Banks are Robbers

Women in Conflict

Around the world, the mother-in-law, daughter-in-law relationship is fraught.  Blame Oedipus.

In India,he mother-in-law syndrome reflects the skewed power relations between the sexes, as well as strife between the generations. The imbalance begins at (or before) birth. Even today, girls are likelier than boys to die in childhood; they often receive less food, schooling or medical care, or are simply abandoned. This is largely because males still wield economic power. Boys generally inherit land and other assets, and are far likelier to bring home wages. Girls are passed to other families as wives and domestic labour.   Women in Conflict

Women in Conflict

Bilking the Poor in the US

Why Financial Literacy is Important

World is one of America’s largest providers of installment loans, an industry that thrives in at least 19 states, mostly in the South and Midwest; claims more than 10 million customers; and has survived recent efforts by lawmakers to curtail lending that carries exorbitant interest rates and fees.

Installment lenders were not included in a 2006 federal law that banned selling some classes of loans with an annual percentage rate above 36 percent to service members — so the companies often set up shop near the gates of military bases, offering loans with annual rates that can soar into the triple digits.      Bilking the Poor

Predatory Loans

Are English Speaking Lawyers Worldwide the Answer to Entrepreneurs Local Problems?

Hoping to become the Middle East’s legal hub, in 2011 Dubai International Financial Centre (DIFC) threw open its courts to disputes from any country, provided both parties agree to be bound by its decisions. The attraction is that the courts use the English language and operate in public under English-style common law (Scotland has a different legal system). This makes the legal process more transparent and much less risky for Western firms, which are put off by the reputation of Dubai’s local civil-law courts for favouring Emiratis over foreigners, according to Will Buckby at Beale & Company, a law firm.   British lawyers in Dubai

British Lawyers