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Open Think Tank Articles

February 12, 2010 | Is Greece the New Lehman Brothers?

Joerg Wolf: How should the euro zone members deal with the PIIGS? Portugal, Ireland, Italy, Greece and Spain have big budget deficits and other economic problems that lead to speculation against the euro. How serious is it? What should be done?

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November 12, 2008 | Renaissance of Protectionism

Jens F. Laurson & George A. Pieler: The first dangerous results from governmental overreaction to the financial crisis are beginning to show. Bailout bills have counterproductive effects as political pressure is even brought on institutions that do not need the governmental help. Following protectionist approaches could lead to a harmful and tragic economic outcome.

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Global Must Read Articles

June 13, 2012 | Berating Berlin is Detrimental to Europe

Spain is now viewed as part of a wider struggle to rescue Europe, with Germany portrayed as the villain. ++ Intellectuals are calling for Berlin to take measures that may lead to political radicalization. ++ From Berlin’s view, it is unfair to underwrite banks of countries with taxpayers’ money for social benefits that are better than their own. ++ This goes against what was promised to them: a

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February 28, 2012 | Germany is Now the America of Europe: Hated

Why not exclude ethnic origins from reporting on the Eurocrisis? ++ Hardly a day goes by in Greece without Chancellor Angela Merkel being depicted in a Nazi uniform. ++ Germany will not see a good deal of the €130 billion it will give to the bailout fund again but is being treated like it is invading Europe again. ++ Germany is now the America of Europe, hated “because it is too successful,

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October 27, 2011 | Eurozone Summit Fails to Address Unemployment

As Eurozone leaders agreed to continue with austerity and forced the banks to write off 50 percent of Greece’s debt, the effect of these measures will hardly be felt by Southern European countries plagued by unemployment. ++ Medium and small businesses are teetering on the edge of bankruptcy resulting in massive layoffs and a drastic drop in productivity. ++ Bailouts and austerity measures may

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May 6, 2009 | Bailouts for Banks: Unjust and Very Expensive

In
an attempt to control the economic crisis and stabilize global financial
institutions, the world has quickly become tied up with billions of dollars in
bailout packages.  In the meantime it
seems things are almost back to normal, even though experts continue warning
about the risks of financial spread sheets of large banks.  The US is by far the most entangled in
bailout plans.

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February 2, 2009 | Tax Payers Pay for Stockholders' Mistakes

The Obama administration’s plan for rescuing the banking system is not the appropriate response to saving the financial system. ++ The problem goes beyond fairness considerations, “where taxpayers bear the cost if things go wrong, but stockholders and executives get the benefits if things go right.” ++ Times have changed, Greenspan is no longer the Maestro and bankers are no longer

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January 29, 2009 | PM Harper's Hobson Choice

Last seen clutching on to power by the skin of his teeth in the Fall, Canadian PM Harper has come back with a massive $2.5m bail-out plan. ++ “Can there be any greater act of capitulation for a former head of the anti-government National Citizens’ Coalition than actually increasing the size of government?” ++ This new budget is entirely void of ideology and marks a complete U-turn

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December 10, 2008 | "Don't Create a Fiscal Crisis!"

The European Central Bank has cooperated with major central banks to expand its liquidity provision, making it easier to access central-bank money. ++ Fundamental measures to protect economies have been carried out by euro-zone governments, which have “provided support for the banking system by offering funds for recapitalization and guarantees for inter-bank loans.” ++ Effective

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November 19, 2008 | A More Stable Banking System

By passing an economic rescue package, Congress intended to stabilize the banking system by “purchasing illiquid mortgages and mortgage-related securities.” ++ Rising unemployment, falling house prices and European economies in crisis have averted the desired outcome. ++ However, the next administration will have less trouble dealing with challenges as it will face a “more

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November 17, 2008 | Gas: $3.50

General Motors is on the brink of bankruptcy with Ford and Chrysler not far behind. ++ The government must bail out the auto industry as hundreds of thousands of jobs are at stake. ++ A gas tax is the answer. ++ Gas prices should be set to $3.50 per gallon with a variable tax adjusted according to the real gas price. ++ This tax could revenue $17 billion in one month, $140 billion in one year,

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November 14, 2008 | After a Vote for Change, Obama Chose Continuity

Washington’s handling of the Wall Street bailout is incompetent, maybe illegal. ++ The Democrat response is to either defend the Bush administration or refuse to intervene. ++ Bush is violating the conditions of the original bailout, effectively cutting another $140 billion in taxes. ++ Obama’s agenda has turned from “change” to “continuity.” ++ It would do him and his fellow Democrats good to

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November 6, 2008 | How President Obama Can Solve America's Crisis

It is no wonder that Barack Obama has won the presidential elections as he understood the failures of the current administration. ++ To make up for these mistakes Obama must replace Bush’s economic bailout plan by implementing a more transparent and controlled strategy. ++ His administration must take the leading role in adressing issues of climate change and “come up with

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October 24, 2008 | What We Can Learn From Asia

Financial bailout plans enacted by governments help to revitalize market confidence but do not address the fundamentals of the financial crisis. ++ Governments have failed to closely check banks’ balance sheets  – they should learn a lesson from Asia. ++ First, the situation of financial institutions has to be assessed before asset management companies can aquire “non-performing

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October 15, 2008 | Assuaging EU Taxpayers

Europe has a plan to bail out the banking system, but it might be hard to convince European taxpayers to pick up the bill. ++ In reality gross debt will increase, not taxpayer debt, and by saving banks we save million of jobs - yet strong opposition from national parliaments is still likely. ++ To convince taxpayers, leaders in Europe must do three things: punish banks and bankers by increasing

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October 15, 2008 | Merkel in the Hot Seat

Merkel’s uncertainty regarding the financial crisis is becoming increasingly evident. ++ Recently, three “Merkel myths” have been dispelled: the CSU loss in Bayern ended the idea of Merkel’s electoral invincibility; her rejection of an EU financial rescue plan proves she is not a European; and political vacillation has cast doubt on her leadership abilities. ++ As the

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October 9, 2008 | US Sneezes, World Catches the Flu

Even those inimical to US policies “have reason not to gloat over America’s comeuppance.” ++  Hugo Chavez has warned of the impending force of “one hundred hurricanes” about to be unleashed on the world’s markets. ++ European nations are having a hard time coming to terms with a solution; Sarkozy has promulgated an EU-wide bailout fund for all 27 members, which faced ardent opposition from

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