Recession

Labour’s simmering resentments and self-doubts have been boiling over recently — and today is no different. Compare and contrast The Sun’s interview with Tony Blair with Andrew Grice’s article on Ed Balls in the Independent. For Blair, Labour ought to be claiming more credit for their preparatory role in some of the coalition’s reforms, such as the Academies programme. For Balls, they ought instead to be dodging blame for the state of the public finances. As Grice reports, “Ed Balls has rejected demands from allies of Ed Miliband that he admit Labour spent too much when they were in power.” From the rest of the piece, the shadow chancellor’s position

Gordon Brown’s friends have launched a shameless effort to compel the government into nominating him for the IMF post. The government would be mad if they did. Mad. This is not about petty score-settling, as yesterday’s Evening Standard would have it. This is about qualifications to lead, and the former Prime Minister, despite his intellect, does not have those skills. He led the country to ruin and remains in denial about it: he saved the world, don’t cha know. The UK should be smarter about using talent from across the House, but there are limits. And it is a bit rich for the ex-PM’s friends to argue that David Cameron

Five years have passed since Alan Greenspan stepped down from the most influential banking job in the world. (Now that’s how to leave at the right time.) Described in books, interviews and profiles too numerous to mention as ‘the most powerful regulator/person on earth’, he served as Chairman of the Federal Reserve for 19 years. For reasons of sheer longevity, perhaps Greenspan deserves to be called the architect of the modern global economy more than any of his elected contemporaries. So it’s not insignificant that, by the accounts of his friends back in 1950s New York, Greenspan was something of a fruit-loop as you will discover tonight if you watch

Robert Peston called it: the Irish banks are mired. The latest round of stress tests has been conducted and the headline figure is that the Irish banks face a shortfall of 24 billion euros. A major recapitalisation will follow and it’s likely that more institutions will be taken under state control. Ireland is also likely to ask for more cash from the EU. These tests were based on conservative criteria, where the Irish economy contracted by 1.6 percent this year, unemployment peaked at 15.8 percent and there was a cumulative collapse in property prices of 62 percent. It’s grim in Ireland, but not that grim: most forecasters are predicting GNP

One thing worth noting before we discuss Balls’ appointment is that the reasons Johnson have resigned are personal. It is not about his competence or otherwise. The Tories are wasting no time in getting stuck into Ed Balls. One just said to me, ‘the man who created this economic mess is back. He designed the fiscal rules that failed, he designed the FSA that failed…’ Certainly, the Tory attempt to make Labour’s economic record the premier political issue has just become a lot easier. Balls will be a more aggressive opponent for Osborne. But I suspect that he will prefer facing Balls to Yvette Cooper. I expect we will hear

The truth, as they say, is out: it doesn’t look as though the coalition will be doing much about bankers’ bonuses after all. According to this morning’s Times (£), it’s a case of the Tories getting one over the Lib Dems – and particularly Vince Cable – by not pushing down with more taxes on the City. But that, I suspect, is only half the story. The other half is that the coalition never had much in their armoury, but harsh rhetoric, in the first place. If they want the banks to start lending to business again, then their most substantial hope has always been a trade-off over bonuses. Which