Chinese Banks Lure Deposits by Offering Goodies for Cash – Businessweek

This is an amazing, must-read story from Business Week. Check it out!

via Chinese Banks Lure Deposits by Offering Goodies for Cash – Businessweek.

At least there seems to be a bit of competition for customers in China.

In the UK, by way of comparison, the major banks seem to treat customers as an irritant.

Recently, for me, customer service with my UK bank has been so bad that I have twice received financial compensation.

Since the financial crash of 2008, it has become clear that the banks are ineffective, with broken processes and ineffective customer service. The only good news is that the swinging cost-cutting has taken out layers of useless management.

Surely, it’s time to let the Bank of England take the gloves off, break up the big banks and generate a bit of real competition?

Any thoughts?

Fear and greed in the eurozone | Gavyn Davies | Insight into macroeconomics and the financial markets from the Financial Times – FT.com

Financial Times

Image by henry… via Flickr

As usual Gavyn Davies weekly blog in the Financial Times is well worth a read. Check it out! 

Gavyn Davies is a macro economist and was formerly Head of Economic at Goldman Sachs.

Fear and greed in the eurozone | Gavyn Davies | Insight into macroeconomics and the financial markets from the Financial Times – FT.com.

Personally, on reflection, I think that it is rather sad that so much of our lives will be determined by the moment “collective fear” gives way to “collective greed”. When I studied Finance, some forty years ago, it was mainly focused on investment.

It is interesting to speculate where Finance lost its way to fear and greed? It can probably be traced back to the de-regulation of the banks in the US and the repealing of the Glass Steagall Act.

In my view, President Clinton’s deregulation of the Financial Services industry in the US has been the underlying cause of the global financial crisis since 2008. Perhaps without de-regulation in the US, hedge funds would not have been allowed to grow and short-sell European governments’ sovereign debt & the European financial crisis could have been avoided?

I wonder if Greek citizens, in their collective fear of the financial unknown, will be blaming the US hedge funds for their plight? Or will they agree with the Western media and hold Greek political classes and the bloated Greek Public Sector accountable?

Hedge funds are like street bullies – they will continue to pick off weaker prey, until another player on the block steps in and gives them a bloody nose. Isn’t  it about time that the German right moved over and let the ECB “take their gloves-off”?