March 1st 2008


  Buy Issue 2774
Qty:

Articles from this issue:

COVER STORY: The Australian economy a 'house of cards'

EDITORIAL: Timor troubles: the way ahead

CANBERRA OBSERVED: What remains to be done after saying sorry?

NATIONAL AFFAIRS: Brian Burke and Kevin Rudd cross paths again

ECONOMIC AFFAIRS: Economic policy-making in conflict

STRAWS IN THE WIND: Hysteria in the House / US election campaign / "Say sorry" segment / The economy

ISLAM: Uproar over Archbishop of Canterbury's Islam gaffe

AUSTRALIAN HISTORY: Why Australia's Christian heritage matters

HUMAN RIGHTS: The 2008 Olympics and China's Communist regime

TAIWAN: Chen: Almost over, but not out

INTERNATIONAL AFFAIRS: Australia and Japan set to draw closer together

AS THE WORLD TURNS: Global warming? It's the coldest winter in decades / Capitalism's enemies within

Reality gap between words and action (letter)

Wentworth's vision for Australian railways (letter)

Thuggery at Brisbane pro-life rally (letter)

The struggling Rudds (letter)

BOOKS: IT'S YOUR TIME YOU'RE WASTING: A teacher's tales of classroom hell, by Frank Chalk

BOOKS: CAPTAIN BLIGH'S OTHER MUTINY, by Stephen Dando-Collins

Books promotion page
FONT SIZE:

AS THE WORLD TURNS:
Global warming? It's the coldest winter in decades / Capitalism's enemies within




News Weekly, March 1, 2008
AS THE WORLD TURNS:

Global warming? It's the coldest winter in decades

New evidence has cast doubt on claims that the world's ice-caps are melting, it emerged last night. Satellite data shows that concerns over the levels of sea ice may have been premature.

It was feared that the polar caps were vanishing because of the effects of global warming. But figures from the respected US National Oceanic and Atmospheric Administration show that almost all the "lost" ice has come back.

Ice levels which had shrunk from 13million sq km in January 2007 to just four million in October, are almost back to their original levels. Figures show that there is nearly a third more ice in Antarctica than is usual for the time of year.

The data flies in the face of many current thinkers and will be seized on by climate change sceptics who deny that the world is undergoing global warming.

- from Tony Bonnici, Daily Express (UK), February 18, 2008.

URL: www.express.co.uk/posts/view/35266/Global-warming-It-s-the-coldest-winter-in-decades

;

 

Capitalism's enemies within

Amid the mayhem on world financial markets, it is becoming clear that capitalism's most dangerous enemies are capitalists. No one can have watched the "subprime mortgage" debacle without noticing the absurd contrast between the magnitude of the failure and the lavish rewards heaped on those who presided over it.

At Merrill Lynch and Citigroup, large losses on subprime securities cost chief executives their jobs - and they left with multimillion-dollar pay packages. Stanley O'Neal, the ex-head of Merrill, received an estimated US$161 million.

Everyday Americans will conclude (rightly) that this brand of capitalism is rigged in favour of the privileged few. It will be said in their defence that these packages reflected years of service, often highly successful. So? It's not as if these CEOs weren't compensated in all those years. If you leave your company a shambles - with losses to be absorbed by lower-level employees, some of whom will be fired, and shareholders - do you deserve a gold-plated send-off? Still, the more serious problem transcends the high pay itself and goes to the wider consequences for the economy.

Wall Street's pay practices perversely encourage extreme risk-taking that can destabilise the economy...

By "Wall Street", I mean all the commercial banks, investment banks, mutual funds, hedge funds and the like that comprise the financial sector - but particularly investment banks.

Pay is eye-popping. In 2007, Lloyd Blankfein, chief executive of Goldman Sachs, received compensation estimated at $68 million. But pay is also heavily skewed toward annual "bonuses" based on the profits that traders and bankers generate...

Just why investment bankers and traders out-earn, say, doctors or computer engineers is a question I've never heard convincingly answered. Are they smarter? Unlikely. Do they contribute more to the economy? Questionable.

True, Wall Street often performs a vital function. It channels savings into productive investments. It helps provide access to capital and credit. In 2006, U.S. companies raised nearly $4 trillion through new stocks and bonds. Many financial innovations, including mortgage-backed securities, have benefited individuals and companies.

But Wall Street also frequently misallocates capital and credit. The "tech bubble" of the late 1990s was one episode. Now we have subprime mortgages. Why? Well, the herd mentality of financial crazes has a long history. But compensation practices skewed so heavily toward bonuses based on annual profits make matters worse.

- from Robert J. Samuelson, Washington Post, January 23, 2008.

URL: www.washingtonpost.com/wp-dyn/content/article/2008/01/22/AR2008012202615.html
 




























Join email list

Join e-newsletter list


Your cart has 0 items



Subscribe to NewsWeekly

Research Papers



Trending articles

MARRIAGE The issue, Bill, is transgender marriage

EDITORIAL Shorten's agenda will cripple Australia

SAME-SEX MARRIAGE The media, champions for free speech and rights (for the media), demonstrate predictable inability to contain bias on postal vote

FEDERAL POLITICS Backbench marriage push angers Coalition colleagues

CANBERRA OBSERVED Candidates must polish their paperwork skills

COVER STORY The lessons for euthanasia are there for the learning

SAME-SEX MARRIAGE Hundreds of doctors call on AMA to withdraw defective statement on same-sex marriage



























© Copyright NewsWeekly.com.au 2017
Last Modified:
March 16, 2017, 10:40 am