Sometimes, anecdote is more revealing than data. A few days’ gleanings:
Confronting Putin: Five months ago NATO countries gathered in Wales and agreed to defend their military budgets from cuts, and to take a tough line with Vladimir Putin. Of the six largest defense spenders, only the U.S. and France have kept to that pledge, and this year only the U.S. will keep the promise made by all 28 NATO members to spend at least 2 percent of GDP on defense The UK, Canada, Germany and Italy have all announced cuts in their defense budgets. (FT Feb. 26). German troops train with broomsticks instead of rifles (Telegraph March 1), and Britain’s prime minister, with an election coming up in May, was so upset when his generals announced they could not protect the UK from a Russian air attack that he ordered the chief of staff to cancel a speech (Feb. 23). Putin noticed.
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Bank Economics: Jamie Dimon, CEO of JPMorganChase, denied that his bank is too big and diversified to manage. Marianne Lake, his CFO, added, “Scale has always defined the winner in banking.” New York Times March 1. So Dimon also announced that it would shed staff and 300 branches, as well as $100 million in deposits from financial institutions because it is too costly to meet the regulatory requirements associated with such deposits.
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The Fed and Rates: “Yellen puts Fed on path to Raise Rates.” Wall Street Journal, Feb. 25.
“Core prices will have to show a bit more oomph before it [the Fed] feels more comfortable about raising rates.” Wall Street Journal, Feb. 27.
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Oil Price Forecasts: “No relief for falling crude prices.” Wall Street Journal, Feb. 21/22.
“Oil’s plunge could fuel its rebound.” Wall Street Journal, Feb. 23.
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Alex Returns to Work: “We trust all of our guys are going to put forth a good, honest day’s work … and Alex certainly is one of them.” Yankees general manager Brian Cashman, New York Times, Feb. 27.
“What was most striking about Rodriguez’s first workout at first base was how disengaged he appeared to be. While other Yankees did the drills at close to game speed … Rodriguez went about his work with a degree of nonchalance.” Asked the hardest part, Rodriguez said, “Finding my first-base mitt,” which he failed to do in time for the workout. New York Times, Feb. 28.
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Reform in the EU: France’s National Assembly refused to pass a law proposed by its economy minister. It was the “most potent symbol” of president Hollande’s commitment to reform the economy, according to the Financial Times (Feb. 21-22). Proposed reforms included permitting mayors to allow retail stores to open on twelve Sundays each year, instead of five. Offensive to the unions and the left of the governing socialist party. The EU nevertheless allowed France to exceed the debt limit to which it agreed as part of the reform package. Meanwhile, Greece is to be given no relief from the austerity program imposed by the EU at the insistence of Germany, which speaks to Greeks “as if to children” (New York Times March 1). Children with lots of time on their hands – 50 percent of young people and 25 percent of all workers are unemployed.
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Penurious Students: Student debt and defaults are at an all-time high. And student housing is changing. “In addition to wanting to live close to campus, students also increasingly seek convenient access to restaurants, coffee shops and other retail stores,” Brian Veith of the National Multifamily Housing Council told the Wall Street Journal (Feb. 25). Nothing like a latte over which to discuss the burden of student debt.
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Vladimir the Innocent: Russian President Vladimir Putin expressed his “deep condolences” to the loved ones of murdered vice premier Boris Nemtsov, and has assumed “personal control” of the investigation into the killing. Investigators are pursuing several lines. It was a contract killing designed to embarrass the Kremlin, said Putin. Maybe it was Islamic extremists who killed Boris Nemtsov. Or someone offended by his love life. Or his own team, eager to create a “martyr”. Or agents of a Western power that will stop at nothing to disfigure President Vladimir Putin’s image and drive him from power. New York Times, March 1 and others. The authorities have not asked for the submission of alternative theories.
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Fixing Corruption in Brazil: Police in Brazil seized assets of accused insider-trader and ex-billionaire Eike Batista to be certain that they can guarantee compensation if Batista is convicted. Judge Flavio Roberto de Souza, the magistrate who ordered the seizure and was presiding over the trial, was seen driving the Porsche Cayenne seized from Batista, and found to have acquired one of the accused’s Range Rovers and a piano. (AP, Feb. 26) The judge says he took the Porsche to keep it out of the sun. He has been removed from the case.
