There is a habitual practice on Wall Street of companies buying their own shares to reward shareholders who hold them, and at the same time give a bonus to top executives. The advantage of these share buybacks is that they are not taxed.
Articles by Miguel Navascués
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After twenty years of similarity between 10-year rates in the US and Germany, for the last six years there has been a growing decoupling of the US rate, reaching a spread of 2%. So what are the macroeconomic differences justifying such behaviour? Germany’s huge savings play a big part.
It’s clear that the prices of physical and financial assets are growing a lot, while debts are increasing strongly. As experience shows, it’s difficult for everything to get back to normal systematically.
Draghi is nervous because the dollar has begun to fall, messing up his plan to withdraw stimulus from an economy which is increasingly more dynamic.
We have read that in Tarragona, a province in Catalonia, a flat has been sold for 40000 bitcoins, because that’s what the owner wanted.
How do I see the year 2018? Low growth and productivity, a declining working population, and an unsustainable rise in animal spirits. Everything comes to an end, and the longer it takes, the worse it is.
There’s an idea circulating amongst the central banks or, more accurately, amongst pressure groups in the central banks. The crux of this idea is: “the central banks should normalise interest rates”.
In the IMF blog there is a brief view of how well the year has gone and the promises for the future which we can extract from this good performance. For me it’s proof of an excess confidence which in the past was a trap into which the markets systematically fell. But the IMF has to accept the rationalistic view that the markets don’t get it wrong, while I maintain they quite often make mistakes.
For the time being, Spain’s economy is maintaining its cruising speed and GDP will grow 3.1% this year, according to estimates. But Catalonia’s progress is visibly slowing, with figures continually being downgraded.
Europe has been seriously hit by the outcome of the German elections. And it’s difficult for it not to suffer the consequences of being led by Germany. What is in doubt is whether in the next crisis, which could be fuelled by any of the underlying threats (Russia, immigrants, separatism etc) there will be sufficient common resources to deal with them.