Business

Ex-Bank of England chief: ‘Another crisis is certain’


Finance / Oscar Williams-Grut

Ex-Bank of England chief: ‘Another crisis is certain’

Former Bank of England Governor Lord Mervyn King says governments around the world need “the courage to undertake bold reforms" to prevent the global economy falling into another financial crisis.
In extracts from his new book serialised over the weekend in The Telegraph, Lord King writes: "Another crisis is certain, and the failure… to tackle the disequilibrium in the world economy makes it likely that it will come sooner rather than later."
Lord King was Governor of the Bank of England from 2003 to 2013, overseeing the UK government’s bailout of Royal Bank of Scotland and Lloyds Bank in the wake of the 2008 financial crisis.
Despite having a hand in post-crisis central banking policy, Lord King argues that governments and central bankers have not been systematic enough in dealing with the problems that caused the 2008 crash, instead simply dealing with its symptoms.
Lord King argues that central bankers have been too keen to see liquidity as the issue and the solution to financial problems since 2008, when the real issue is solvency.
He writes in The Telegraph:
Dealing with the immediate symptoms of crises by taking short- term measures to maintain market confidence – usually by throwing large amounts of money at it – will only perpetuate the underlying disequilibrium.
Almost every financial crisis starts with the belief that the provision of more liquidity is the answer, only for time to reveal that beneath the surface are genuine problems of solvency.
Fifty years from now, will our grandchildren ask why we lacked the courage to put in place reforms to stop a crisis happening again? I hope not. Events drive ideas, and the experience of crisis is driving economists to develop new ideas about how our economies work. They will be needed to overcome the power of vested interests and lobby groups.
The extract does not make clear what exactly these "bold reforms" Lord King is calling for would look like.
Lord King is also vague on the subject of what exactly the next crisis he is predicting will be. However, he highlights issues with China, emerging markets, and Europe. He writes:
The epicentre of the next financial earthquake is as hard to predict as a geological earthquake. It is unlikely to be among banks in New York or London, where the aftershocks of 2008 have led to efforts to improve the resilience of the financial system.
But there are many places where the underlying forces of the disequilibrium in their economies could lead to cracks in the surface – emerging markets that have increased indebtedness, the euro area with its fault lines, China with a financial sector facing large losses, and the middle and near east with a rise in political tensions.
Lord King is hardly the lone bear sounding the alarm on these issues. Goldman Sachs has dubbed emerging market debt — specifically China’s huge debt burden — the "Third Wave" of the 2008 financial crisis and global stock markets have collapsed since the start of the year amid fears over Chinese growth rates.
You can read the full extract from Lord King’s book in The Telegraph.Join the conversation about this story » NOW WATCH: EXCLUSIVE: Hugh Hefner’s son speaks out against Playboy’s decisions to go non-nude and sell the Mansion

Ex-Bank of England chief: ‘Another crisis is certain’


Finance / Oscar Williams-Grut

Ex-Bank of England chief: ‘Another crisis is certain’

Former Bank of England Governor Lord Mervyn King says governments around the world need “the courage to undertake bold reforms" to prevent the global economy falling into another financial crisis.
In extracts from his new book serialised over the weekend in The Telegraph, Lord King writes: "Another crisis is certain, and the failure… to tackle the disequilibrium in the world economy makes it likely that it will come sooner rather than later."
Lord King was Governor of the Bank of England from 2003 to 2013, overseeing the UK government’s bailout of Royal Bank of Scotland and Lloyds Bank in the wake of the 2008 financial crisis.
Despite having a hand in post-crisis central banking policy, Lord King argues that governments and central bankers have not been systematic enough in dealing with the problems that caused the 2008 crash, instead simply dealing with its symptoms.
Lord King argues that central bankers have been too keen to see liquidity as the issue and the solution to financial problems since 2008, when the real issue is solvency.
He writes in The Telegraph:
Dealing with the immediate symptoms of crises by taking short- term measures to maintain market confidence – usually by throwing large amounts of money at it – will only perpetuate the underlying disequilibrium.
Almost every financial crisis starts with the belief that the provision of more liquidity is the answer, only for time to reveal that beneath the surface are genuine problems of solvency.
Fifty years from now, will our grandchildren ask why we lacked the courage to put in place reforms to stop a crisis happening again? I hope not. Events drive ideas, and the experience of crisis is driving economists to develop new ideas about how our economies work. They will be needed to overcome the power of vested interests and lobby groups.
The extract does not make clear what exactly these "bold reforms" Lord King is calling for would look like.
Lord King is also vague on the subject of what exactly the next crisis he is predicting will be. However, he highlights issues with China, emerging markets, and Europe. He writes:
The epicentre of the next financial earthquake is as hard to predict as a geological earthquake. It is unlikely to be among banks in New York or London, where the aftershocks of 2008 have led to efforts to improve the resilience of the financial system.
But there are many places where the underlying forces of the disequilibrium in their economies could lead to cracks in the surface – emerging markets that have increased indebtedness, the euro area with its fault lines, China with a financial sector facing large losses, and the middle and near east with a rise in political tensions.
Lord King is hardly the lone bear sounding the alarm on these issues. Goldman Sachs has dubbed emerging market debt — specifically China’s huge debt burden — the "Third Wave" of the 2008 financial crisis and global stock markets have collapsed since the start of the year amid fears over Chinese growth rates.
You can read the full extract from Lord King’s book in The Telegraph.Join the conversation about this story » NOW WATCH: How Donald Trump used bankruptcy to stay rich

Facebook Instant Articles Will Give All Publishers Faster Loading, Fewer Monetization Options


TechCrunch / Josh Constine

Facebook Instant Articles Will Give All Publishers Faster Loading, Fewer Monetization Options

 Facebook is taking another bite of the outside Internet by turning its Instant Articles format into an open platform any publisher can use starting April 12th. Yet the question remains whether Instant Articles are good for publishers, or something detrimental they’ll have to adopt or be left behind. Since the launch in May, Facebook had worked directly with partnered publishers to… Read More

Facebook Instant Articles Will Give All Publishers Faster Loading, Fewer Monetization Options


TechCrunch / Josh Constine

Facebook Instant Articles Will Give All Publishers Faster Loading, Fewer Monetization Options

 Facebook is taking another bite of the outside Internet by turning its Instant Articles format into an open platform any publisher can use starting April 12th. Yet the question remains whether Instant Articles are good for publishers, or something detrimental they’ll have to adopt or be left behind. Since the launch in May, Facebook had worked directly with partnered publishers to… Read More

Kanye Can’t Stop Piracy


Gizmodo / Alex Cranz

Kanye Can’t Stop Piracy

The Life of Pablo has been downloaded over 500,000 times since its release on February 14, according to TorrentFreak. What does that mean? That means half a million people looked at that free sample subscription to Tidal and said “nah.” They saw a “sign up for free” label and then looked at their old copy of Utorrent that probably gave them a virus three years ago and thought piracy was the better plan. The Pirate Bay, one of TorrentFreak’s primary data points, doesn’t show the precise number of downloads, but it does show that nearly 10,000 users are seeding T.L.O.P. right now. That’s three times more seeders than the next closest album (Rihanna’s ANTI). It’s killing in private circles too. On one site it had twice as many seeders as the next closest album (Adele’s 25) and had just under 2,000 fewer downloads despite being online for two days rather than three months. The old adage is that media piracy is all about filling the gaps. Your average cheap-as-fuck consumer has needs, and piracy provides. Piracy lets people sidestep expensive movie tickets, pricey DVR fees, and draconian DRM in their video games. And now, piracy is letting them sidestep a couple of free months of Tidal and the risk of forgetting to cancel the free trial before their credit card gets charged.Maybe they’re downloading it because Kanye insists it will never see a Sam Goody or iTunes Music store. These half a million pirates—a number that continues to grow—are just thinking about that future date, when they will have to pay for Tidal to get the tunes and being proactive. Or maybe they just couldn’t be bothered to click the “accept” button.Regardless, it’s not looking good for Kanye right now. He can’t save Tidal. He can’t stop piracy. He’s 53 million dollars in debt. And he mixed T.L.O.P. in like a week, and so it sounds like a hot pile of ass leaking into your ear.Least he has that cool shirt with his mom’s face on it.[TorrentFreak]Image: GettyContact the author at alex.cranz@gizmodo.com.

Kanye Can’t Stop Piracy


Gizmodo / Alex Cranz

Kanye Can’t Stop Piracy

The Life of Pablo has been downloaded over 500,000 times since its release on February 14, according to TorrentFreak. What does that mean? That means half a million people looked at that free sample subscription to Tidal and said “nah.” They saw a “sign up for free” label and then looked at their old copy of Utorrent that probably gave them a virus three years ago and thought piracy was the better plan. The Pirate Bay, one of TorrentFreak’s primary data points, doesn’t show the precise number of downloads, but it does show that nearly 10,000 users are seeding T.L.O.P. right now. That’s three times more seeders than the next closest album (Rihanna’s ANTI). It’s killing in private circles too. On one site it had twice as many seeders as the next closest album (Adele’s 25) and had just under 2,000 fewer downloads despite being online for two days rather than three months. The old adage is that media piracy is all about filling the gaps. Your average cheap-as-fuck consumer has needs, and piracy provides. Piracy lets people sidestep expensive movie tickets, pricey DVR fees, and draconian DRM in their video games. And now, piracy is letting them sidestep a couple of free months of Tidal and the risk of forgetting to cancel the free trial before their credit card gets charged.Maybe they’re downloading it because Kanye insists it will never see a Sam Goody or iTunes Music store. These half a million pirates—a number that continues to grow—are just thinking about that future date, when they will have to pay for Tidal to get the tunes and being proactive. Or maybe they just couldn’t be bothered to click the “accept” button.Regardless, it’s not looking good for Kanye right now. He can’t save Tidal. He can’t stop piracy. He’s 53 million dollars in debt. And he mixed T.L.O.P. in like a week, and so it sounds like a hot pile of ass leaking into your ear.Least he has that cool shirt with his mom’s face on it.[TorrentFreak]Image: GettyContact the author at alex.cranz@gizmodo.com.

Ohlala, An Uber For Escorts, Launches Its ‘Paid Dating’ Service In NYC


TechCrunch / Lucas Matney

Ohlala, An Uber For Escorts, Launches Its ‘Paid Dating’ Service In NYC

 New Yorkers sick of the tired uncertainties of the urban dating scene can now turn to a new dating app that’s aiming to reduce its complexities to dollars and cents.
Ohlala, a controversial on-demand escort dating app popular in Germany, is launching its services today in its first American market, New York City.
It was no sooner than Ohlala’s CEO and co-founder… Read More

Ohlala, An Uber For Escorts, Launches Its ‘Paid Dating’ Service In NYC


TechCrunch / Lucas Matney

Ohlala, An Uber For Escorts, Launches Its ‘Paid Dating’ Service In NYC

 New Yorkers sick of the tired uncertainties of the urban dating scene can now turn to a new dating app that’s aiming to reduce its complexities to dollars and cents.
Ohlala, a controversial on-demand escort dating app popular in Germany, is launching its services today in its first American market, New York City.
It was no sooner than Ohlala’s CEO and co-founder… Read More